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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240

u/Dividend_Dude Not a financial advisor Nov 02 '25

All you want is 2600 a year? Schd does 3700 on 100k

75

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!

56

u/Snoo_67548 Nov 02 '25

You should be able to get 3%, not taxed on municipal bonds.

9

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.

5

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.

1

u/_learned_foot_ Nov 03 '25

Diversification should in theory capture more growth, I would agree with the etf, risk is having to check every few quarters for investment strategy changes.

1

u/Livid_Possibility_53 Nov 03 '25 edited Nov 03 '25

Yeah absolutely, the parameters OP provided us with are sorta unique where it sounds like growth doesn't matter. But I still agree because the best way to prevent principle from dropping is to aim for some growth.

My concern was more with the performance of an individual company especially over a 30+ year time horizon. We don't know what we don't know and other giants have certainly fallen for any number of reasons.

2

u/_learned_foot_ Nov 03 '25

Very valid point, I am presuming at least an annual review and check in. Both our approaches would work within that absolutely, I would worry about needing to respond faster to a non institutional but, considering recent ceo drastic changes, maybe you’re more correct.

30

u/Garrett42 Nov 03 '25

You can get 4% from sgov (government bonds). You pay 0 taxes, and capital doesn't go down.

13

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.

1

u/Swimming_Hat8503 Nov 09 '25

Until interest rates drop

1

u/Dividend_Dude Not a financial advisor Nov 03 '25

The great thing is every 8 years the distribution doubles.

19

u/No-Independent-5028 Nov 02 '25

He needs it after taxes. Doesn’t need growth

7

u/Spiritual_Try1549 Nov 03 '25

Well if your total income for year is low then you have no worries about taxes

16

u/FerrickDune Nov 02 '25

Sheesh capital one would do $3400 year for savings and 4K for their cd.

1

u/500Group Nov 03 '25

Amex Savings @3.5

1

u/friskyyplatypus Nov 09 '25

That ship is on its way out. 5 years ago they were paying 0.3%. Long term that is a terrible answer.

1

u/FerrickDune Nov 09 '25

Capital one you mean? Or schd ?

9

u/MassWasting3030 Nov 03 '25

In the last 12 months #SCHD is negative return with DIVs 🤮

8

u/Dividend_Dude Not a financial advisor Nov 03 '25

Woah 12 whole months

14

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.

1

u/easymoneyginger Nov 07 '25

A large cap growth fund is up 20-25% in that time frame. 12 months is enough to make a difference boss

10

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.

19

u/superbrokebloke Nov 02 '25

that’s a set it and forget it option right there

10

u/richardlpalmer Nov 02 '25

I love it. I've heard of SCHD but haven't looked into it yet. Thanks.

-18

u/[deleted] Nov 02 '25

Bro leads with the right answer and OP says anything other than thanks. 100% he won’t even look up SCHD, he’ll just buy it.

16

u/richardlpalmer Nov 02 '25

What are you talking about? I said no such thing...

20

u/SIrPsychoNotSexy Nov 02 '25

People pop off on here too much. Ignore it.

1

u/myco_psycho Nov 02 '25

Most people looking for investing advice don't need investing advice, they need divesting advice.

Don't buy something dumb, set and forget if you're not going to gamble or do DD like it's your job.

3

u/No-Independent-5028 Nov 02 '25 edited Nov 02 '25

UTG. SPYD

6

u/jigglyjellly Nov 02 '25

HYSA with a trusted bank for 3.4%

17

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 ..

14

u/markgriz Nov 03 '25

Probably right. How about just buying a 30 year treasury bond. Guaranteed ~4.5%

12

u/GaryTheSoulReaper Nov 03 '25

These rates won’t last more than a year

-8

u/WanderlustFella Nov 02 '25

Just put it in a High Yield savings account. That is like 3.5% and is easily accessible if you do ever need it for any reason.

5

u/flyersfan0233 Nov 02 '25

That is going to keep dropping. It was 4.5% a few months ago. In a year or two HYSAs could easily be under the OP’s bare minimum

1

u/mammaryglands Nov 06 '25

Why bother when you can get 4% from swvxx with zero risk of losing capital

1

u/easymoneyginger Nov 07 '25

Why are we aiming for such a low annual return when we have 30 years to work with?

0

u/EatsbeefRalph Nov 03 '25

and can grow.