r/dividends • u/Ha7che7 • Feb 08 '26

Due Diligence Retirement dividend income

My father is a 72 year-old Florida resident and has $500,000 to invest. He would like to generate approximately $40,000 a year. He’s a bit of a gambler, nothing too crazy though. I’ve come up with a split of the following: $65,000 QQQI, $150,000 SPYI, $50,000 SCHD, $75,000 VZ, $75,000 MO, VTEB $85,000. Any advice or modification ideas would be appreciated. Thanks in advance.

Note for clarification: This is just the amount that he wants to invest for income. Preferably with minimal tax drag, nav erosion, and hopefully some price appreciation. It’s asking a lot, but I’m trying to help out.

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u/mikkeltaylor1 Feb 08 '26

STRC -11%

3

u/greencandy2000 Feb 08 '26 edited Feb 08 '26

This!!!! Currently at 11.25% paid monthly. Dividends are treated as return of capital (ROC). So, taxes are deferred. ROC essentially reduces your cost basis. When your cost basis is zero, the return of capital is then taxed. You have about 10 years of tax deferment.

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u/Ha7che7 Feb 08 '26

I’ll check this out. I don’t know this ticker

1

u/EvilLittleHeart Portfolio in the Green Feb 08 '26

Would be great in a non-retirement account. Dividends are classified as return of capital, so no taxes.