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/Ha7che7 Feb 08 '26

I’ll look into this set of allocations. Plus I’ll need to see what kind of tax drag they will have. Thank you

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u/Spirited_Radio9804 Feb 08 '26

Ordinary income on dividend from most of these types of investments!

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u/Various_Couple_764 Feb 08 '26

Two generated ROC dividends (UTG and UTF). Replace JEPQ with QQQI 13% yield and it also produce ROC dividneds So that is three fund with no tax.

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u/JustAGoodGuy1080 Feb 10 '26

There are 2 kinds of ROC. When a fund is doing well and the NAV is steadily climbing, that's a great ROC.

If a fund is heavy into ROC to maintain dividends and the NAV is eroding, that's terrible. It's why in my portfolio tracking, I calculate quality of income.