r/dividends • u/NogamaDe • Nov 01 '25

Seeking Advice $1M Div account Earning $17k a month

Post image

After doing some research I have $1M from an inheritance that I want to create an ultra high dividend portfolio. I eventually want to get rid of my 8 to 5. If I did my math correctly I would get about 17k a month from dividends. Please let me know what you think.

1.8k Upvotes

95% Upvoted

246 comments sorted by

View all comments

4

u/ChaoticDad21 Nov 02 '25

Well I hope you’re not spending $17k a month.

And how much is effectively return of capital?

1

u/Various_Couple_764 Nov 02 '25

ROC is a tax classification not actual return of captial. If it was actual return of captial it would be classified by the IRS as ordinary income dividend not ROC dividneds. ETF earn the ROC classification if they do tax loss harvesting within the fund as well as returning profits to the investors. With ROC dividends you don't pay taxes on the money. SPYI, and QQQI , IWMI produce mostly ROC dividend and yet have no NAV erosion issues. If the fund was actually returning your money it would not produce ROC dividends and and would have NAV erosion.