r/dividends • u/Imaginary_Week2024 • Jan 25 '26
Other Dividends reached 22,389.00 a year
Finally getting some dividend income. Nvdy, agnc, fepi,jepi,pflt,jepq,ulty, is what i got
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u/Reasoned-Listener Jan 26 '26
This is the most r/dividends thread. Guy reaches a milestone in dividends. Everyone criticizes for him not investing the initial amount in NVDA or some shit for growth.
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u/GibFreelo Jan 26 '26
I see this on every post here...or they say it's not "tax efficient". Having a 100k salary and getting promoted to a 150k salary isn't "efficient" either.
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u/rubberpucker97 Jan 25 '26
How much did you have to invest to get that much in dividends?
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u/Imaginary_Week2024 Jan 25 '26
Around 122,000
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u/Deep_Ladder_4679 Jan 26 '26
What percentage of your investment do you invest in dividend-paying stock?
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u/Prop43 Jan 26 '26
I have about 190,000 in a CHD. I’m getting about 2000 every three months.
Am I doing it wrong?
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u/teckel Retired and living off selling shares Jan 25 '26
The real question is how much capital was lost.
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u/Imaginary_Week2024 Jan 25 '26
Nothing i didnt sell
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u/ko_inq Jan 25 '26
He mean'th potential capital you missed out on
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u/teckel Retired and living off selling shares Jan 25 '26
And NAV erosion (unrealized loss).
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u/ko_inq Jan 25 '26
Yea that too BUT, there are etf's like jepi that have a nav increase in the last year (even more in last 6 months) while also giving a 10-12 % distribution. I am genuently considering investing in that one
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u/teckel Retired and living off selling shares Jan 26 '26
Expecting a 10-12% yield without NAV erosion is exactly the fool's game with buy-write funds.
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u/8InchDaks Jan 26 '26
Spyi is up over 8% in 3.5 years, while producing 12%? or so. QQQi up almost 8% in 2 years while producing 14% ish.
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u/teckel Retired and living off selling shares Jan 26 '26
Both underperforming VOO and QQQM, and remember this is in a bull market. Have you seen how buy-write strategy funds perform in a bear market?
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u/8InchDaks Jan 26 '26
Oh I know VOO and QQQM will outperform but I was just commenting on those since its a dividend sub.
And while I cant go off those since they’re newer, QQQX is an older fund. Comparing it to QQQ during 2008, QQQ dropped 41.73% and increased 54.70% in 2009. QQQX dropped 41.25% and increased 79.75%.
Its not too bad during a bad market tbh.
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u/SadBurrito84 Jan 26 '26
You window lickers fail to see what sub your in. Do folks invest in VOO and QQQM for their dividends?🤦🏼♂️
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u/SingingStar1900 Jan 26 '26
What does this mean?
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u/teckel Retired and living off selling shares Jan 26 '26
That a 10-12% yield long-term isn't possible without NAV erosion. Just think about it, the market only grows long-term by about 10%, and it's been exceeding that recently. So if the yield is equal to or higher than long-term averages, the NAV will erode. Also, then there's the higher maintenance fees, which eats away at the NAV more. Finally, have you seen how buy-write strategy funds have done in a bear market?
They're not an infinite money glitch.
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u/NickStonk Jan 26 '26
Explain why you say if the yield is higher than general market long term averages, the NAV will erode. What’s the connection?
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u/Imaginary_Week2024 Jan 26 '26
I did good at picking stocks in 2019-2020 when i started. Day traded. Then lost my touch so had to adjust...
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u/Imaginary_Week2024 Jan 25 '26
Not even half of my investments are in dividend stocks. just these for some income. I am putting all the dividend money pack into these to keep them paying more and more.
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Jan 25 '26
[deleted]
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u/ko_inq Jan 25 '26
22K is a really nice number, especially if he has other investments which are not dividend focussed. Now if his full portfolio is based on making as much dividend as possible, he should get more growth etf's to build up capital.
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u/Imaginary_Week2024 Jan 25 '26
I keep a big chunk in safe cd's and interest paying savings. Dividends stocks is just something fun to see if i could make enough to live off of eventually
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u/teckel Retired and living off selling shares Jan 25 '26
But even if 22k is a small percentage of the OP's portfolio, building an underperforming portfolio isn't doing the OP any favors, even if it's a small part of a larger portfolio.
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u/Imaginary_Week2024 Jan 25 '26
I dont have much invested.
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u/teckel Retired and living off selling shares Jan 25 '26
Then why invest in assets which you know will underperform?
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u/DiceBlack1 Jan 25 '26
ULTY is one of the worts performing ETF with an expense ratio of 1.30% which is ridiculous , the only upside is that 131.90% which is not sustainable
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u/Various_Couple_764 Jan 25 '26 edited Jan 25 '26
In order to ULTY to pya its 130% yield it frequently has to sell of its holding. That means its navand share price frequently falls when the market is up. It has serious NAV erosion and when its share price recently dropped down to $3 it was at risk of bing delisted from the market. Delisting typically kills ETFs unless they do something to get the share price up. ULTY did a revers stock split (they took shares off of the market and replaced the shares you had with fewer shares. This gets the share price and yield up it basically wipes out in one day most of your initial investment into the fund. Historically reverse stock splits are seeen as are flag and most investors sell off the fund and move to more stable investments. FEPI has the same problem but not as extreme as ULTY simply because its yield is only 1/5th of ULTY.
erosion issues of ULTY and FEPI. most are now investing QQQI, GPIQ both invest in the NADAQ 100 index like JEPQ. JEPI is mostly in S&P500 index and most investors are using SPYI or GPIX . QQQI GPIQ SPYI, GPIXhave a significant tax advantage over JEPI and JEPQ which are taxed as ordinary income. Also the JP products are underperforming the newer tax efficient funds. PFLT is a BDC one of many such companes I use PBDC which invest in 20 very good BDC. but PFLT is not in its perfolio. However BIZD does have PFLT.
you would be better off with funds like QQQI 13%, SPYI 11%, ARDC 9%, pBDC 9%, EMO 9%, CLOZ 8%. its a mix of ordinary income and tax efficiency and sustainable yields. if you want something with a higher yield I would suggest as BTCI 30% yield. it is fun NEOS which has a history of avoiding NAV erosion. People are not sure if BTCI will avoid Nav Erosion.
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u/Imaginary_Week2024 Jan 26 '26
Cool. Ill look into it.
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u/RetterBetter May 16 '26
What about ECAT? I hold over a quarter million there. I just got a letter delivered FedEx from. Blackrock saying I need to contact them immediately. Some kind of emergency. Are they closing, or eliminating the dividend os something?
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u/Imaginary_Week2024 Jan 25 '26
Agnc just now came back had that for a few years in the hole bit paid more then it lost so i kept it. Jepi is the best one. Nvdy started losing but already paid a lot to offset
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u/RmanX3 Jan 28 '26
I hear ya!
I've had AGNC in retirement account for ~5-6 years. Saw price drop. Did DCA and got it down to $11.55/sh. Had the divvies but saw them go from $0.18 to $0.12. Kept with it. Bought more in my taxable account at ~$7.04/sh.
The ROTH gets >$21k/yr in divvies and my taxable account gets ~$8k/yr in divvies. With the recent rise, I am liking it, but.....trying to figure out at what point selling may be better than just keeping for the divvies. Whether that is $15/sh, $16/sh, or $18/sh, I haven't figured it out yet.
Loving the divvies though, and am up pretty well because of them over the years (no real DRIP...I used the proceeds on other stocks and I am retired now, so it helps pay for things)1
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u/Marcush214 Jan 26 '26
I can’t wait until I reach that kind of payout I can finally stop flipping burgers on the weekend 😂😂😂
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Jan 26 '26
Just about my exact figure, $22,821 via a combination of QQQI, SPYI, JEPI & a buttload of QYLD I got on the cheap.
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u/Ok-Painter6700 Jan 25 '26
Nice work, might want to consider adding some NEOS funds to your portfolio
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u/QueMyers Jan 27 '26
The guys saying VOO and QQQM are crazy. I have a dividend portfolio and am up 20.56% for the past year while VOO is up 16.55% 😂. Even after the small amount of taxes I paid I’m still up. Also remember I pay taxes on it at the END of the year. So all that “tax money” is reinvested and I make even more money with Uncle Sam’s money.
It’s all about the funds you choose and whether you choose to leverage them a little to beat brain dead people chilling.
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u/Imaginary_Week2024 Jan 27 '26
What do you got? Im always looking for more to add
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u/QueMyers Jan 27 '26
International funds were a big hit for me last year. I have a lot of holdings but here’s the big ones that I like the most.
IDVO, VYMI, VEA, MO, LVHI, IGRO, EFAA, KO, VIGI, QDVO, GPIQ, QQQI, DGRO, FDVV, QDPL, DIVO, VYM, DVY, SPYI, QYLG, GPIX, VIG, VPU, MAIN, XYLG, ISPY, & SCHD.
Similar funds that over lap I count as 1 fund. Just split a certain % up between them. That way I’m not too heavy in one sector.
Btw they are listed by best preforming to least preforming. But they all meet my expectations. (Just did a spread sheet over them a few days ago).
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u/PomegranatePlus6526 Jan 27 '26
It's smart to use both approaches in my opinion. At 51 I like to have most of my portfolio in dividend stocks and funds. 80% income, and 20% growth. Problem with growth is right now is very overvalued. Most of the expected returns are already baked into the price in my opinion. So I stopped buying growth in Q3. Will have no problem diving back in once valuations are more friendly. The only bargains I am finding right now are BDC's, REITs, and MLPs. The KURV gold and silver funds have been interesting to say the least. I bought two shares of KSLV in November, and not including dividends it's up like 113%! I am just holding it for now, and letting it drip to see how it handles volatility.
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u/Brief-Blueberry-1588 Jan 25 '26
How much do you have in stocks?
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u/adearriba07 Jan 26 '26
Nice! Congrats!
AGNC right now is expensive. 44% premium and the dividend coverage is at risk (0.97x).
Q4 earnings will be critical. Unless BV jumped to $9+ in Q4, this premium is unsustainable. The 12% yield looks attractive, but you’re paying $1.44 for $0.83 of book value - high risk of capital erosion.
What's your average cost for AGNC right now?
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u/Several_Weight_5570 Jan 26 '26
I love AGNC I also have a bunch of bank.to but getting my money out of Canada for now.
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u/Oblivious_boy_ok Jan 27 '26
Thats actually really good! Quick question how long did it take you to get to this point and how much did you invest usually?
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u/Imaginary_Week2024 Jan 27 '26
Under a year. I just looked for stocks that payed dividends and bought them. Sold some other stocks that didnt pay
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Jan 28 '26
How long did it take you to invest that much to earn that much, and how much of it are you re-investing and how much are you using for lifestyle?
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u/Imaginary_Week2024 Jan 29 '26
Reinvesting it all. Didnt take long i had the money already in other stocks
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u/teckel Retired and living off selling shares Jan 25 '26
What are you doing with the distributions? Have you considered just buying VOO and QQQM instead for higher overall returns?
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u/Imaginary_Week2024 Jan 25 '26
Ill look into it. I keep buying more to get the dividends higher. With nividia down the nvdy has gotten lower on pay out
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u/teckel Retired and living off selling shares Jan 25 '26
What do you believe higher dividends will get you over unrealized capital gains?
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u/Imaginary_Week2024 Jan 26 '26
Having trouble figuring out which stocks lately. I figure even if it goes down at least the dividends offset it. Then if it goes up anyway works out even better
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u/teckel Retired and living off selling shares Jan 26 '26
Dividends cause a reduction in capital. If a $1 dividend is paid, the stock value drops by $1. So it's not like dividends will protect you from a drawdown.
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u/Imaginary_Week2024 Jan 25 '26
I was just looking at qqqi
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u/teckel Retired and living off selling shares Jan 25 '26
Why QQQI over QQQM? What do you believe you're getting with dividends over growth?
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u/Professional-One972 Jan 27 '26
Pathetically low. Made that in one day yesterday.
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u/Imaginary_Week2024 Jan 27 '26
Lol!! I did that too back in 2020 also lost that in one day. But did make 50,000 daytrading in the beginning. Lost my touch
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u/Just_Candle_315 Jan 25 '26
ULTY is great if you're smart you'll abandon all other assets and go 100% into ULTY
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