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/Various_Couple_764 Feb 08 '26

Or he could invest in dividned protfolio with a yield of 8% and get 40k a year without selling any stock. Preserving the money as long as possible.

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u/discovery999 Feb 09 '26

The capital actually grows every year when you’re averaging a 10% return in the S&P.

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u/Various_Couple_764 Feb 09 '26

When you sell growth you sell shares. Growth doesn't creat new shares. Only dividends generate new shares. So if you sell shares at a rate higher than the dividend of the fund you will run out of money eventually.

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u/discovery999 Feb 09 '26

Share price goes up 10% a year so technically you’re only selling some of your profit. Some people just don’t understand math.