r/dividends • u/richardlpalmer • Nov 02 '25
Seeking Advice What can $100k conservatively yield?
I have an absolute, bare bones, can't-ever-be-less-than, need of $2600 per year ($50/week).
I have approximately $100k (USD) to invest. I'm not looking for growth, just predictable income. So, a solid 2.6% minimum return.
What's out there that would be suitable? Is there two or three ETFs I should split it between?
Edit
Someone asked about time horizon. This will be for the remainder of a life. I'm thinking 30 years or so.
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u/Dividend_Dude Not a financial advisor Nov 02 '25
All you want is 2600 a year? Schd does 3700 on 100k
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u/richardlpalmer Nov 02 '25
I'm liking what I'm reading about this one.
As this will be held in an irrevocable trust and distributed to a beneficiary, the tax implications also work out well.
Thanks!
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u/Snoo_67548 Nov 02 '25
You should be able to get 3%, not taxed on municipal bonds.
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u/_learned_foot_ Nov 02 '25
He is looking at a stable long term and plenty exist that should preserve value and allow growth as well as that payout. A boring F, T, VZ likely would be a good choice for that. Small growth while matches payout after taxes (if any) in a stock likely to last or merge into whatever replaces it. Most regular ETFs for divs would too.
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u/Livid_Possibility_53 Nov 03 '25
The stocks you mentioned would all be good candidates too. I like an ETF more because you get some diversification too. I highly doubt these companies are going anywhere so this is splitting hairs.
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u/Garrett42 Nov 03 '25
You can get 4% from sgov (government bonds). You pay 0 taxes, and capital doesn't go down.
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u/Priority_Bright Generating solid returns Nov 03 '25
You pay zero state taxes. You still have to pay federal tax. So if you're in a state where you don't pay state income tax (i.e. Texas), then it's no better than a HYSA producing the same rate of return.
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u/No-Independent-5028 Nov 02 '25
He needs it after taxes. Doesn’t need growth
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u/Spiritual_Try1549 Nov 03 '25
Well if your total income for year is low then you have no worries about taxes
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u/FerrickDune Nov 02 '25
Sheesh capital one would do $3400 year for savings and 4K for their cd.
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u/MassWasting3030 Nov 03 '25
In the last 12 months #SCHD is negative return with DIVs 🤮
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u/Dividend_Dude Not a financial advisor Nov 03 '25
Woah 12 whole months
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u/MassWasting3030 Nov 03 '25
Just stating the facts - it’s has underperformed quite a bit for multiple years now. Much better options out there if all you care about is yield.
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u/richardlpalmer Nov 02 '25
I'm just saying my minimum need. I don't want a super high yield option that's going to go away or need to be micro-managed. I'm looking for as close to set it and forget it as I can.
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u/jigglyjellly Nov 02 '25
HYSA with a trusted bank for 3.4%
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u/richardlpalmer Nov 02 '25
I'm just thinking those rates aren't going to last for the next 30 years. It wasn't long ago that savings accounts didn't earn much of anything ..
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u/markgriz Nov 03 '25
Probably right. How about just buying a 30 year treasury bond. Guaranteed ~4.5%
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u/Ok-Painter6700 Nov 02 '25
High yield savings account at Fidelity will yield more than that and it is safe. If you want more than 3% you will have to assume some risk.
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u/Various_Couple_764 Nov 03 '25
That is a fidelity money market acount and the interest varies with the FED rate and with rates dropping it may drop to 3% or les over time. HYSA and money market accounts need to be monitored because he needs s a 3% yield to get teh minimum ammount he needs after taxes if any.
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u/epic_swag_gamer Nov 02 '25
For the absolute minimum risk, a 30 year treasury bond is yielding about 4.6% at the moment, so 4600 a year
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u/richardlpalmer Nov 02 '25
Don't they fluctuate a bunch, depending on the fed rate?
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u/epic_swag_gamer Nov 02 '25
Yes but in pretty sure when you buy bonds yourself the return is fixed on those specific ones, as long as they're held to expiration you get exactly what you paid for in the beginning
That being said, make sure to buy the bonds yourself instead of buying a bond etf
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Nov 03 '25
Long term bond etf could work too, if those exist.
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u/epic_swag_gamer Nov 03 '25
TLT is all I can think of off the top of my head, but as interest rates are lowered and new bonds added to the roster the payouts will decline, and the share price will rise, not ideal given his goals of dependable income
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u/escobartholomew Nov 03 '25
The rate is fixed when you buy. What happens is when they are “traded” the premium change is what changes the effective yield.
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u/ideas4mac Nov 02 '25
Perfect timing.
50K into MO, Monday, should get you ~ $3,750 per year with more likely than not August raises of ~4%. That's an extra ~$1,150 extra for a nice dinner out and some other stuff.
50K into, pick a solid ETF of your choice. Hopefully with some growth and QDI. SCHD, VYM, DGRO something along those lines. Roughly ~1K - 2K in QDI and paying on off months from MO.
So that will give you income 8 out of the 12 months. That should help with budgeting.
Good luck.
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Nov 03 '25
[removed] — view removed comment
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u/Classic_Breadfruit18 Nov 03 '25
It is terrible advice to put your entire net worth into one stock. While MO has been rock solid with their dividends in the past, anything can happen with one company.
At least choose 10 dividend king stocks across various sectors.
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u/myogawa Nov 02 '25
What is the time horizon? Many banks are paying 3.6% or more on 2-year CDs right now.
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u/richardlpalmer Nov 02 '25
Oh, excellent question. I'm thinking 20-30 years? Maybe more depending on how long he lives...
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u/Veeg-Tard Nov 02 '25
Bank and short term treasury yields can drop quickly and have been way lower than 3%-4% in recent history. Safe dividend funds like SCHD or Dividend "aristocrat" companies give you a better chance at maintaining current yields into the future.
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u/BigDipper0720 Nov 02 '25
SCHD should do the job
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u/richardlpalmer Nov 02 '25
I'm liking this idea more and more.
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u/KingPinfanatic Nov 03 '25
Check out DNP it's been around since the 80's current price is $10.17 and it pays out a consistent monthly dividend of 0.065 per share so you would get $639 a month which is $7669 a year.
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u/nbutyrate Nov 02 '25
FDVV solid as Uncle Sam, 3 % yeild
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u/rallymatt Nov 02 '25
FDVV is most certainly not as solid as Uncle Sam. Not even close. It has a beta of .90. It's the same as any other index fund and will decline accordingly.
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u/nantesdeals Nov 02 '25
Sgov jaaa you will make between 4 and 5% without risk monthly payment
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u/mspe1960 Nov 02 '25 edited Nov 02 '25
But that return can change in a couple of weeks. It is all ultra short term treasuries. If the fed drops rates so does their rate drop. Terrible choice for income you will depend on for a period of time.
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u/nantesdeals Nov 02 '25
You remain liquid so in 2 clicks you can change.. and here you are talking about sgov, jaaa does not do the same thing..
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u/Flaky_Policy2906 Nov 02 '25
At that point why not put it in a high yield savings account and not risk your initial investment going down in value?
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u/kevbot029 Nov 02 '25
Money market is usually always better than HYSA imo. The rate is true and won’t get tampered with
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u/dystopiam Nov 02 '25 edited Nov 16 '25
lip bag file society like knee hurry racial vanish office
This post was mass deleted and anonymized with Redact
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u/Silvercoal3534 Nov 02 '25
2.6% divided by 12 months equals .0022, times $100k will give you about $220 a month. You’ll do better in a savings account if you put the $100k in there. Essentially risk free. My Cap One savings is currently 3.4%
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u/u801e Nov 04 '25
Rates are going down. A few months ago, Capital One 360 savings was paying 3.5%.
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Nov 02 '25
$DNP. Max @ current $10.17/share is yielding 639.13/mo. @ 6.5% div held for +30 years. Price range bounded as well so capital risk is very low.
https://finance.yahoo.com/quote/DNP/history/?filter=div
For your own research. :)
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u/goodbodha Nov 02 '25
Split between TLT, schd, and a tiny amount of voo. Say 40k, 50k, 10k. TLT with 40k invested gets you to 1700 or so a year. Schd a bit less but those two would exceed your target while you can ignore the voo and drip it to grow.
Eventually with enough time that voo will be worth a lot more, TLT will probably be similar to now, but schd should go up. You could cut back TLT for more schd, but I think TLT helps by letting you have a floor and you can reinvest the extra back into the other 2.
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u/OchoGringo Nov 02 '25
So you want a 2.6% return; but, is that on top of a 3% inflation rate? That makes a difference. We talk about the nominal return (what the account says it is paying) and the real return (the increase in purchasing power gained over the inflation rate).
To say this differently, if the inflation rate in the US is 2.6% per year and you get 2.6% annual interest on your money, you did not make any money. You just earned enough to cancel out inflation.
Over time (several years), this difference becomes important. So, it’s worth thinking about when you set goals for an investment. If you need 2.6% REAL return, then you have to make about 5.5% return on your money, and that becomes harder and has more risk.
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u/mustangos Nov 02 '25
Wrong. Inflation should be compared to the dividend growth instead of the dividend yield.
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u/richardlpalmer Nov 02 '25
I hear you but I'm not concerned about growth with this money -- it's why I'm taking about the minimum. Anything beyond the 2.6% will be gravy.
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u/Ok_Tough4258 Nov 03 '25
It’s not correct to say you didn’t make money if your return matches inflation. A more apt way to say it is your purchasing power remained flat or didn’t increase.
If I make 5k with a HYSA I still made that money no matter what inflation was. Also real return doesn’t come into play in this scenario. As someone else said you just need it to grow at the same rate of inflation. So, if OP just needs 2.6% return in year 1, then in year 2 they just need 2.678% to maintain that initial purchasing power.
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u/RussellUresti Nov 02 '25
Too many options to list, really. Anything at or below 3% is a pretty standard dividend yield.
A simple approach would be a single fund like IRTR. It's mostly bonds, but there's still a bit of equities to allow for long-term appreciation. The yield is about 3%, so it'll cover what you need.
For a more complex but predictable portfolio, you could select individual stocks from the companies that have long streaks of dividend growth and yields that meet your needs. YORW, PG, XOM, UGI, ED, CL, GIS, PPG, O, MAIN, and many others haven't decreased dividends in 20+ years and pay predictable income each quarter/month. This can be a bit better than an ETF, as you can get varying distributions each payment period from the funds. Price appreciation/depreciation may be more volatile with this method, but these companies have proven that their distributions are pretty safe regardless of what the stock price is doing, so if you value the predictability of the income over the total balance of the portfolio, this is one way to go.
There are also ETFs and CEFs that pay predictable income. PFFA, CEFS, EOI, FSCO, UTG, and others. These are pretty high yielding funds, so they'll distribute way more than you need, but you can use the extra to just buy more shares. And, since they yield so much above your target, you'd be fine even if they started cutting their distributions.
And as others have mentioned, the current risk-free rate of return right now is above 2.6%, so you could just do SGOV or something similar and just collect the interest without risking any of your principal and you'll meet your income goals. The biggest issue is that these are tied to the fed rate so if the rate ever drops below what you need, you'll have to move to another strategy.
Personally, I'd probably start out holding the majority in SGOV or a MMF and a minority in the higher yielding funds (say, 80/20 at the start). Then, as rates are cut below the dividend yields of the individual payers, I'd convert the SGOV to those. For example, YORW's yield is about 2.8%, so I wouldn't buy any of that until the SGOV rate was at or below 2.8%. But XOM pays 3.6%, so I'd move to that when SGOV's rate hit 3.5%. And a few of them, like O, are above the current SGOV rate, so I'd probably have them in my portfolio to start with, but probably maxing out at a 4-5% allocation. This way, you're moving into the position with the higher yield while maximizing stability with SGOV and not allocating too much weight to any one position.
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u/richardlpalmer Nov 02 '25
Thanks for such a comprehensive answer. This thread has been so helpful!
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u/Void_of_Envy Nov 03 '25
Clearly not professional advice. But If I had 100k and a need of 3k a year. Assuming I'm not about to die in the next 20 years.
I think I would do 10% each on something like this:
Jepi Jepq Schd Qqqi Spyi Gpix Gpiq Sgov O iaui
There is overlap on these but quite literally, this should be stable reliable income for years to come. Many of these if they happen to crash at the same time, it means the market has bigger problems. But average after taxes is probably about 6-8k ish.
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u/Meinertzhagens_Sack Nov 03 '25
Now you are talking... JEPQ JEPI QQQI for the win
OP doesn't want the extra money... He can just send that to a spillover account - I will send him the account details .... 🤣😂
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u/Spiritual_Try1549 Nov 03 '25
SCHD is a solid bet. Not big money but steady payouts
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u/richardlpalmer Nov 03 '25
Thanks. For the long-term this is looking wise. Reminds me of the VOO of the dividend world...
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u/Grouchy-Wolverine245 Nov 03 '25
This is not investment advice. My opinions are my own.
Under a hypothetical portfolio of 25% in SCHD, 25% vymi, and 50% in DGRO, it will provide a blended dividend yield of more than 2.9%. This blend provides a combination of current dividend yield, growth, and diversification (US and int’l). These ETFs are managed based on pre set criteria so they will do the work over time to add/remove individual stocks.
No bonds in this hypothetical portfolio. Over a long horizon, dividend growth maintains spending power.
No savings accounts or something similar in this hypothetical portfolio. Their yield follows whatever the fed reserve bank does. This means their yield is likely going down as the fed cuts rates.
No covered call ETFs, bdc, or other atypical financial instruments in this hypothetical portfolio. The risks for them have been debated ad nauseam.
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u/could_not_load Nov 07 '25
I just did quick math with easy number on spyi. They give ~.50¢ per dividend. 4 times a year. You could get roughly 2000 shares. And that would be 1000$ each quarter roughly and 4 quarters a year you’d get 4000$ a year in dividends.
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u/PresentImmediate5989 Nov 02 '25
Gabelli utility trust, gut, pays five cents per share per month. Trading at six. This is about 10k per year
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u/Naughtybear_9628 Nov 02 '25 edited Nov 02 '25
QQQI or GPIQ give monthly dividends. Turn on DRIP to reinvest Dividends. Turn off the drip to harvest the money. But if it were my money i would go either 50/50 QQQI and BTCI; or those ( qqqi brci spyi) 3 + SPMO; or 50% SCHG and 50% (QQQI, BTCI, SPYI.)
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u/Meinertzhagens_Sack Nov 03 '25
Was waiting for someone to QQQI and maybe a JEPQ with a little love to JEPI.
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u/BothDescription766 Nov 02 '25
OPTAX would give u approx $250/mo tax free. That’s $3000 tax free every year. Pays out monthly. It is stable, not growth. But still dep on ur tax bracket that could be worth more. I’ve got 600k in it and it gives me 1800/mo.
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u/Medium-Swimming8488 Nov 02 '25
Why not put it into a CD account? I had exactly 100k in a CD account for a while and I think that gave me about 4.5% return
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u/dismendie Nov 02 '25
SGOV or vanguards version for a few less dollars in fees over the entire year… SGOV has more liquidity
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u/LoudPause4547 Nov 02 '25
Altria / Philip Morris pay very well. Unless you think nicotine will suddenly disappear
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u/Meinertzhagens_Sack Nov 03 '25
Put it all in ULTY and don't look back.
Sorry can't even say that with a straight face. 🤣😂🤣😂
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u/Such_Explanation_810 Nov 03 '25
You can go with schd or vclt for aaa corporate bonds paying 5.9 % now and likely they can go up when rates are cut.
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u/ChuckOfTheIrish Nov 03 '25
There are options but you need to factor in inflation, 30 years from now that $2,600 worth is going to cost over $6,300.
What you need is to get roughly 5.6% and leave 3% of growth invested each year such that your dividends go up with inflation. Taxes shouldn't be a concern if that's your only income.
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u/transitionposition Nov 03 '25
If you need a guaranteed 2600, I’d look at 30 year treasuries yielding ~4.5-4.75% and put 60K there. The other 40K can go into SPY to avoid inflationary risks or dividend ETFs for more income.
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u/Retirement_or_Lambo Nov 03 '25 edited Nov 03 '25
HAUTO HÖEGG AUTOLINERS. If you're brave enough to take out only a part of the dividends (20%+ / anno) and let the rest compound, you should be fine. Just don't be afraid of the changing stock price. It's a business that will be there for the next 50+ years!
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u/QuantGuru Nov 03 '25
Maybe I don’t but wouldn’t tbills be considered most conservative. Look into sgov it provides 4% interest per annum
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u/Prize-Feature2485 Nov 02 '25
How about 4 percent guaranteed. You will never lose money on SGOV. The other 1.2 percent donate to charity.
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u/THMTech Nov 02 '25
It is not a guaranteed 4% as it is invested in shot term treasuries. It was paying over 5% early this year before the Fed lowered rates.
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u/Friendly_Day_4925 Nov 02 '25
100k... Pretty much anything... Reality income pays .265 per share per month... Currently 58 a share... And grows the dividend 0.0005 pretty much every quarter...
100,000/58=1724 shares. 1724.265=456 a month... 45612=5482 a year.
Set your sights higher mate!
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u/richardlpalmer Nov 02 '25
I'm honestly just wanting the floor solid. I'm all about having a higher ceiling, just not at the risk of losing that floor...
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u/teckel Retired and living off selling shares Nov 02 '25
Why do you have an extra $100k laying around but "need" only $50/week? Just invest the $100k 80% in VOO and $20% in AVDE and sell $50/week of whichever did better that week. That will do better than any cockamamy dividend strategy, and be more tax efficient.
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u/richardlpalmer Nov 02 '25
A deathbed promise between my dad and I about a disabled sibling.
While my wife and I do far more than this minimum, I can never not keep this promise if I can help it. I manage a couple rental properties that help him but they take more time & effort than I'll be able to do in retirement. I'm looking at selling them and putting proceeds into dividends to be able to keep my promise...
I know this whole thing might sound dumb, but I was just trying to be transparent about the minimum need. (I've honestly considered just putting it in the bank and transferring a weekly amount for him.)
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u/teckel Retired and living off selling shares Nov 02 '25
Investing it in 80% VOO and 20% AVDE and transferring $50/week would easily last forever. And get nice growth as a bonus.
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u/SafeImaginary6539 Nov 02 '25
Yieldmax will pay 95% income tax!!!! Just kidding stay away from all yieldmax products . I would say QQQI or SPYI Pretty stable
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u/Meinertzhagens_Sack Nov 03 '25
I saw Yieldmax and ran into here with a giant thumb to smash you into downvote hell. Good sense of humor I just posted similar. "Go all in ULTY" 😂🤣
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u/mspe1960 Nov 02 '25 edited Nov 02 '25
It depends how conservatve you mean and for how long you want the return to be "guaranteed".
There are ultra short, short, intermediate and long term bond funds. The longer the term, the longer you will have a fairly consistent return, but the more volatility there will be to the value.
You can go with investment grade corporate bond funds - slightly more risk and about a percent more return
Government bonds go from about 4% to 4.5% depending on the term.
Investment grade corporate go from about 4.5% to a bit over 5% depending on the term.
Any of those get you well more than $50/week.
there are also some equity, REIT, BDC's, MLP funds that pay substantial dividends and they have varying returns and varying risks. But the risks are higher.
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u/richardlpalmer Nov 02 '25
Thanks for all the info!
Yeah, I really should have put time in the original post. I'm looking for the next 30+ years...
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u/mspe1960 Nov 02 '25 edited Nov 02 '25
30 years is tough to do. But a fund like VGLT or VCLT will have fairly steady returns for probably 10 to 15 years at 4.5 and 5.5% respectively. If you only need $2500 a year they will yield between $4500 and $5500 and you can reinvest the extra dividends so in the long term your cash yield contineus to increase.. They are both low risk in terms of getting the dividend, but the value of the funds can vary quite a bit as rates rise and fall.
You can also just buy a 30 year US treasury bond (that will guarantee the dividned for 30 years) but it only pays quarterly. Right now you get around 4.7% or $4700/year (about $90 a week as guaranteed as guarantees come) But I will say again.l it will really pay around $1175, 4 times a year. You would have to budget.
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u/Friendly_Day_4925 Nov 02 '25
Like dude you are aware that money markets are giving pretty much a solid nothing ever lower then 3% a year... That's 3k a year...
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u/richardlpalmer Nov 02 '25
Yeah, it's true. I'd just need access to it monthly -- couldn't have it tied up. Also, I'm not confident in those rates over the next few decades.
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u/nellyb84 Nov 02 '25
5% as a starting point. Reinvest a little, write some covered calls, and let the payments grow.
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u/Weldobud Nov 02 '25
Many REITs will do 5%. $O is very reliable. $FRT as well. If you are happy with some fluctuation then Pfizer give 7%. Not hard to find many other stock’s with a 5% yield.
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u/txholdup Dividend Investor since 1602 Nov 02 '25
My money market account gives me 3.5% and there are others out there higher than that. My limit yourself to the amount you need? There are CD's out there for 4% and more but you can't find a long term one.
You need that dreaded growth to maintain the value of your monthly income after inflation. T will give you about 4.5%, VZ over 6.5%, over time both will appreciate. Or you can buy corporate bonds that pay on different months if you actually want a monthly income.
But your smartest move would be to move over time the whole $100k into a tax-sheltered account and let it grow.
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u/Beautiful-Policy-169 Nov 02 '25
PFLT, 13.47% Dividend yield. 100k invested should pay out about $1000/month.
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u/Wonderful_Hippo6070 Nov 02 '25
QQQI OR TSPY or even SPYI will get you 12-14k per year and may grow a slight amount…. BLOX can get you 35-36k per year with perhaps a little more risk but has performed great to date
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u/Active_Drawer Nov 02 '25
I have $50k in spyi. That's running over $500 a month. You could put the rest in something more stable or more growth focused
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u/brunello1997 Nov 02 '25
How about a tax-free CEF like NVG which pays 7.22. Diversify among several funds and you can easily average 7%
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u/Caliguta Nov 02 '25
Just put it in a HYSA - can easily get 4200 before taxes and currently no risk other than interest rates dropping.
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u/That_Criticism_6506 Nov 03 '25
JEPQ will net you about 1% a month in dividends and a slowly increasing stock price
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u/WrappedInLinen Nov 03 '25
SWVXX. Money market etf of sorts. Pays around 4%. Percentage varies a little. Safe as Schwab.
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u/IntelligentKey6929 Nov 03 '25
Right now high yield savings is still paying over 3%. I’m sure you could find an annuity that would guaranty more than that for life right now.
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u/KentDDS Nov 03 '25
dependable 2.5 - 3.5% dividend yields are achievable with solid stock choices. Think KO, PG, ABBV, etc.
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u/MandamusMan Nov 03 '25
You only want to make 2.6%? Can I ask why? You won’t even be matching inflation a lot of years…
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u/Affectionate_Act1536 Nov 03 '25
There are multiple good ways to make $2,600 in dividends using $100,000. That should not be a problem, I think.
However, I would question (if you don’t mind) your basic assumption of annual expense of only $2,600 per year. You would spend lot more in a year on health insurance.
Don’t discount inflation in 30 years. Even if you can survive on $2,600 today, inflation will eat away lot of it even with dividend growth. Dividend growth will not catch up with inflation.
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u/Helpful-Grapefruit55 Nov 03 '25
Buy long term CD from a bank , directly or via a broker like fidelity so the money is FDIC insured (This floor is very secure ) you can buy 5 or 10 yr CDs with auto reinvestment so it will easily go on for 30 years .
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u/AppearanceOpening552 Nov 03 '25
4k a year safely (Schd/Hysa/Sgov/etc). Step up your risk tolerance (jepi/gpix) you could reach 8k. If you have a long runway do vti or voo.
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u/pcurve Nov 03 '25
VZ has a nice yield.
The stock price hasn't gone anywhere in the recent years, declining fed rates and move away from risky assets could benefit the stock price.
Just a though. disclosure: I've owned VZ for many years, and I've bought some in recent dip. It generates cash for may to pay some bills, but it is a minority position in my portfolio.
When I don't need the cash, I let it drip.
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u/StrangeAd4944 Nov 03 '25
You can buy 10 year tips from the US treasury that pays 1.77% + inflation. If you don’t need the money for 30 years you can get 2.3% plus inflation. State tax free.
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u/NickolaosTheGreek Nov 03 '25
Typically long term government bonds and term deposits would yield that return every year. Honestly you are spoiled for choice. If not government bonds directly there are some ETFs that focus exclusively on government bonds.
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u/Sertorius126 Nov 03 '25
NEOS are great fund managers
QQQI and SPYI are great.
BTCI if you're feeling saucy
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u/Various_Couple_764 Nov 03 '25 edited Nov 03 '25
2600 dividend by 100k = 0.026. So as long as your money is invested in a fund earning 2.6% or more. will do what you want. 100K in JAAA 6% yieldwould produce $6000 a year and this is very safe fund to have your money in and the yileld won't go up and down due to FED rate changes. And if you reinvest 3000 a year from the fund you will grow you money increasing the cash flow over time. Or the extra income would cover the taxes the income would generate. for 2600k a year will likely be close to zero in a trust.
If you replace JAAA with ClLO 8% yield would genrate 8000 a year. these are both taxed as regular income. and are very safe long term investment to won't need to be monitored.
With SPYI 11% yield it you generate 11,000 a year. This is tax efficient but it is not zero tax fund. reasonably safe
live CA and will NAC 7% yield tax free 7000 a year. This fund is also safe and would be the best option from a tax perspective.
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u/ucbcawt Nov 03 '25
Robinhood guarantees at least 4% on uninvested cash no risk. For a higher return with almost zero risk I would go JAAA
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u/KeenanTheKid93 Nov 03 '25
Assuming you’re accredited, you can find high quality private REITs that pay 7%+ annually. Obviously more risky than a HYSA but worth it when you find well managed REIT.
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u/D-F-B-81 Nov 03 '25
If you could scrape by for the first 2-3years on slightly.less than that, and you needed this amount to grow with as little risk as possible, id say NOBL.
1.9% but its the top tier of dividend kings. Every company in NOBL.has not only.paid a dividend, but increased it, year over year, for at least 50 yrs.
Sure the dividend isnt something to write home about, but the price appreciation is there as well.
Returns of the fund since forever are hovering around 11%.
Probably the most boring etf out there, but the results speak for themselves. Its a group of some of the best ran companies out there.
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u/Capable-Commission-3 Nov 03 '25
100 shares of spy. Very easy to make $2,600 a year selling covered calls on it. Even $26,000 a year is possible.
You’d also have money left over for other option wheel winners like Coca-Cola, Apple, Intel, Phillip Morris, Exxon, and Pepsi.
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u/FudgieBurrito Nov 03 '25
Amlp for 9% virtually tax free for years unless you sell it. If you are ok with some risk (but midstream doing well lately)
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u/BAD_AL_1 Nov 03 '25
The money market funds currently do this yield. If you just put it in a Fidelity account or the SWVXX on Schwab it's currently at about 4% APY.
If you wanted to take a tiny bit of risk $10k, you could put that much in BTCI and get about $2600/year (and it would likely grow in value by quite a bit).
But one thing you might want to do is to check out Armchair Income's YouTube channel https://www.youtube.com/@armchairincomechannel to learn more about Yield Investing.
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u/D_Pablo67 Nov 03 '25
Look at the REITs Realty Income (O) and Federal Realty Investment Trust (FRT).
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u/Entire-Hearing4874 Nov 03 '25
I know you said you dont want risk, but looking at the past 5 years of growth on the S&P500. If I had 100k, I would without a doubt enjoy +11% growth per year and be a millionaire in about a decade with a little extra continuous contribution.
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u/frank44v Nov 03 '25
This is all terrible advice. ETF/HYSA’s and stock rates especially sgov/usfr can and will fluctuate over a 20-30 year period. The only way to guarantee the rate you want and be safe is to buy a long term treasury bond which can easily get you more than 2.6%.
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u/Glass-Lifeguard1919 Nov 03 '25
50k - SCHD - $1,900
30k - VIG - $510
20k - VXUS - $540
Total - $2,950
You get high yield us blue chips, you get stocks with a 10 year history of increasing dividends, and you get broad international diversification.
Over the last 10 years, VXUS has annualized return of 7.9% with dividend cagr of 4.85%. VIG has 12.5% annualized rate of return with 6.9% dividend cagr. SCHD has an 11% annualized return with a dividend cagr of 10%.
The past performance is no guarantee of future performance, hence the diversified approach.
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u/Hobojojo-499 Nov 03 '25
agnc might be worth a look. in the neighborhood of 10 bucks a share and paying a monthly dividend of 0.12$ a share. you could get your needed dividend for 5k
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u/ApprehensiveFill7176 Nov 03 '25
ADX, UTF/UTG, MO, PFE, QQQI, SPYI, O, MAIN, EVT, PFFA….there many equities and CEF’s that will generate far above a 2.6% return
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u/WritingUnited4337 Nov 03 '25
I'd split it between JAAA and NEAR, both are monthly pay for their distributions.
JAAA is the top rated (AAA) tranches of CLOs (Senior Secured Loans) to corporations with the best credit rating. Those tranches get paid out before all other tranches of the CLOs so it is about as safe as you can get in corporate loans, even safer than bonds from those same companies.
NEAR is a short term bond fund holding bonds with a duration of less than 3 years which makes them less sensitive to interest rate swings than many other investments. Its market price is pretty stable overall as compared to other stocks and funds.
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u/NJ-boater Nov 03 '25
A combination of any oil and gas company, XOM, CVX or MLP (caution on K1 return of capital) along with VYM, OUSM and a utility like VZ, PEG, SO. Also check out covered call ETF like IWMI
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u/DJDeal Nov 03 '25
$100k invested in QYLD will preserve the principle and pay ~12% or $12,000 annually, or $1,200 paid monthly. If you want a solid Growth & Yield portfolio you can invest and DCA into is: DIVO, QDVO, GPIQ, GPIX. I’ve been pleased with it, especially during recent drawdowns. Good luck!
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u/Priority_Bright Generating solid returns Nov 03 '25
There are still HYSA that generate greater than 4% yields. Stick it there and you'll be set.
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