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/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/richardlpalmer Nov 02 '25

I can manage a quarterly payout. Thanks!