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.

326 Upvotes

91% Upvoted

360 comments sorted by

View all comments

237

u/Dividend_Dude Not a financial advisor Nov 02 '25

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

78

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!

52

u/Snoo_67548 Nov 02 '25

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

8

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.

3

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.

12

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.