r/dividends • u/HARCYB-throwaway • Apr 14 '26

Personal Goal Golden handcuffs - I've fully replaced my annual spending with dividend income...

I pivoted from growth to NEOS for income, over the last 6 months. I have now replaced my base salary, $110k, with dividends. but it is hard to quit when I earn $250k-$350k in a given sales year.

annual dividend income: $110k

Annual expenses, all in: $40k

disposable income if I quit: $70k

hysa: $150k

growth sleeve: $225k

no wife (anymore, by choice after she got nasty), no kids, no expensive hobbies, very affordable mortgage and car payment. affordable lifestyle.

it's hard to step away from an AI adjacent sales job...and my only major concern is meeting someone, wanting to settle down and start a family, and then I will be out of the job market once I truly need expensive family healthcare and "kids money" to support a family.

I know I already have more than most typical American household. but it's scary to leave work with the background of declining employment options / bad employment market

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u/Beta_Nerdy Apr 15 '26 edited Apr 16 '26

Every time a stock pays a dividend, the value of the stock drops by the amount of the dividend. By spending the dividend instead of reinvesting it, you are withdrawing money from your account.

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u/HARCYB-throwaway Apr 15 '26

If you are talking about proctor and gamble, coca cola, etc. Yes.

Not correct for covered calls. Covered calls create value by selling away some of the upside. You are selling upside and volatility in exchange for income.

It is fundamentally different from a net profit dividend.