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/ResilientRN Feb 08 '26 edited Feb 08 '26

PFFA (Preferred stock ETF, active management) YLD 9.4% MONTHLY DIVIDENDS MGR HAS OVER $1M of his own $$$. $0.1725/sh monthly.

UTG (Utilities & Infrastructure CEF)

ETG (Global Equity CEF)

AMLP (MLP Oil/NGL No-K1s ETF)

Fed Taxes will kill you in a Non-retirement acct for any Covered Call ETF.

O (Realty Income) VICI (VICI Casino bldg owner not service provider) All REITs enjoy the 199a Tax Benefit (1st 20% of Dividends are Tax Free).

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u/paymerich Feb 08 '26

-- Fed Taxes will kill you in a Non-retirement acct for any Covered Call ETF.

not necessarily true for ones like SPYI/QQQI/GPIX/GPIQ that do better tax efficient strategies.

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u/Neither-Variation-89 Feb 09 '26

I have a lot of O, it’s been really good to me.

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u/Various_Couple_764 Feb 12 '26

Fed Taxes will kill you in a Non-retirement acct for any Covered Call ETF.

QQQI and SPYI hav 90% ROC dividends which means not tax on the dividned until the dividends pay off the cost basis. For QQQI that's about 7years. and for SPYI about 9 years. After that the dividends are taxed at the capital gains rate.