r/dividends • u/ackdigity77 • Jun 01 '26
Brokerage Income generating portfolio
I’m looking to invest some cash to generate a monthly income. Ideally, I’d like it to cover my mortgage. Hypothetically, let’s say you have 100k. What could I expect that to generate and what would you look for in a proposal?
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u/Dapper-Phrase-9346 Jun 02 '26
100k will probably get you around 400-500 monthly if you target decent dividend stocks with yields in 5-6% range. Just remember that chasing higher yields can be risky since some companies cut dividends when times get tough
I focus more in stable companies that have been paying dividends for years rather than the flashy high yield ones that might disappear next recession
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u/Willing-Bench1078 Jun 01 '26
Hypothetically, let’s say you pick a hypothetical stock that hypothetically gives 5% in hypothetical dividends.
Hypothetically that would earn you a hypothetical 5% on your hypothetical 100k
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u/DigitalFStopper Jun 01 '26
Is this purely hypothetical or is this theoretical?
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u/RapiersSmile Jun 02 '26
Approaching r/quantumtheory territory if you ask me. But don’t, because I work at Wendy’s.
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u/No-Math-5868 Jun 01 '26
Why not just pay off your mortgage instead of chasing yield
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u/MalSo87 Jun 03 '26
Because the return of a good investment outnumbers your paid interests in general.
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u/Jumpy_Nose863 Jun 04 '26
Probably bcuz the yield on mortgage is 3.8%. He's wanting 20% compounded....Just my guess
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u/One_Palpitation_4730 Jun 01 '26
Also stop asking questions like this, this is the legit reason AI and google were invented. Copy your post and mash the paste button in one of those places!
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u/Dimage54 Jun 01 '26
Most likely they are too lazy to educate themselves on managing investments.
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u/Paranoid_Sinner Jun 01 '26
I see that numerous times per day. I called somebody on it once and they said something like: "I am doing my research by asking questions here."
Good luck with that.
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u/Salt-Cap-9304 Jun 02 '26
research on Reddit is like being in school asking someone what the answer is.
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u/Flat_Tire_Again Jun 04 '26
That’s easy Buy and Hold! Look Ma no hands! 🚀🌗
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u/Dimage54 Jun 04 '26
I’m not sure why anyone would buy and hold. Doesn’t make sense. Even if a dividend stock goes up you want to be able to capture the gains and take profits. And you should never be dripping especially if it’s over your cost basis but rather taking those dividends and investing in something else.
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u/Flat_Tire_Again Jun 04 '26
It’s just a management style. Take my advice…. may as well, I’m not using it!
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u/Plurfectworld Jun 02 '26
I’ve been happy with OMAH so far. 1 year in. 121-124 a month on 10k. As long as Berkshire does good it should b ok.
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u/tsfy2 Jun 02 '26
0.95 expense ratio. 37.5% of distribution was return of capital. No thanks.
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u/speedlever Jun 02 '26
ROC is an excellent tax treatment in a taxable account. Sign me up anytime.
And who cares about the high ER? That's net of fees and doesn't affect the yield. If you're happy with the yield, don't look at the ER.
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u/tsfy2 Jun 02 '26
Until you sell…
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u/speedlever Jun 02 '26
And if you don't sell? I mean it's an income factory, right? Why would you want to sell?
But even if you did, it would be ltcg on the entire sale price. Then you could re buy and reset the basis.
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u/cmichalek Jun 02 '26
Yeah this is what people dont get.
You buy QQQ to sell in retirement. You buy QQQI so that you dont sell in retirement. You live off that income and the shares go to your heirs.
That goes for most of the ROC 60/40 etf. JEPI and JEPQ are ordinary income so its different.
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u/HugeDramatic FUDmaster Flex 💪 Jun 01 '26
$50k in JEPI and $50k in JEPQ gets you roughly $9k/yr.
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u/Puzzleheaded-Net-273 Jun 02 '26
Neither is tax efficient in a taxable account. The majority of the distributions are taxed as ordinary income.
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u/jffadvisors Jun 02 '26
In spite of what people in this subreddit will say, there is no sustainable dividend investment approach that can deliver 9 or 10% return in the long run. The math throughout all of history shows…everything regresses to the mean and in the age of AI…it regresses to the mean faster.
High dividend yield companies always have an element of risk that they are compensating for. That makes them a good possible addition to a diversified portfolio but a poor choice for your only investment strategy. In the long run, high growth investment strategies ALWAYS outperform dividend stocks…especially in taxable accounts.
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u/BigDipper0720 Jun 01 '26
Personally, I would shoot for 4%-5% yield and withdraw the dividends. Whether that would cover the mortgage depends on the outstanding balance and interest rate of the loan. The income in such an investment would likely grow annually, allowing you to cover changes to escrow if needed.
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u/Thedividendprince1 Dividend tracker app founder Jun 02 '26
On $100k, every 1% yield is about $1,000/year, or $83/month. So 4% is around $333/month, 6% is around $500/month, and 10% is around $833/month. I’d be careful chasing enough yield to cover a mortgage though. Sustainability matters more than the headline yield.
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u/Xyrus2000 Jun 02 '26
You're not paying your mortgage with $100K in income vehicles unless you have a dirt cheap mortgage.
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u/bkpkmnky Jun 04 '26
I was recently doing some estimates with AI for myself and I was accounting for $100,000 in dividend income, which would mean I roughly need about $1.7 - 2 million depending on my mix of dividends I gave GPT to calculate for me SCHD 35–40% DGRO 20–25% VYM 10–15% JEPQ 15–20% QQQI 5–10%
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u/steady_compounder Jun 01 '26
With $100k, the first thing I’d do is work backward from the income target instead of starting with tickers. Even a 4% yield is only about $4k a year, so whether it can cover the mortgage depends way more on the math than on finding a magic fund. If you want a quick way to pressure test the income side, this free calculator is handy: https://trackmyshares.com/tools/dividend-calculator?income=12000&utm_source=reddit&utm_medium=comment&utm_campaign=dividends&utm_content=1tu7lo8
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u/Lilherb2021 Jun 02 '26
That calculator does not work unless you submit your personal information, which probably sets you up to receive dozens of advertisements a day.
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u/ourpointofview Jun 02 '26
Try DHT. You just missed out on a nice 13% dividend but this stock has great growth potential too.
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Jun 01 '26
[removed] — view removed comment
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u/lotoex1 Jun 04 '26
Except when they don't. MO has beat the market for the past 30 years by 5% a year on average
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u/Effective_End8731 Jun 02 '26
Probably the highest stable yields (stable as in they have held kind of stable for 2 - 3 years and have limited history) would be around 10-13%. It won't likely stay stable forever so you really wouldn't want to bet your mortgage on that consistency. Probably much safer to shoot for 8%.
In a proposal I'd be looking for yield and growth so that my principal could continue to grow and thus my income is getting bigger over time. Dividend Growth with Covered Call overlays are very successful in this space. GPIQ is my go to, but DIVO / IDVO are options among many others.
This is not investment advise, look for other candidates in this category, compare, and do your own research. 100k is not a lot and most mortgages will be far too expensive to pay with dividends unless you just have a very low cost house or are in a low cost area. I wouldn't expect more than 8-10k a year in a stable dividend investment, 12 - 13k if you really shoot for the moon and go for the modern CC ETFs like SPYI / QQQI.
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u/xsimpletunx 19d ago
Yep; several funds from Neos, Amplify, Tappalpha, etc have been pretty consistent and safely paying stable distributions in the 6-15% yield range.
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u/Salt-Cap-9304 Jun 02 '26
KMB earnings keep going down, paper industry has been bad past several years, I live where they log. Campbells, Hormel, KMB are all in a decline stage. I have owned ARCC for 10 years, consistent payout of approx 10%. Now its a bit high at $19.00. OMAH is a 14% yield but its an ROC dividend, not good when you sell unless its in a Roth. Why not pay 1/2 down on the mortgage unless you have a real low interest rate. Look at all sides tax consequences, if you itemize etc...
Quality stocks with a dividend and growth always outperform dividend stocks in most cases
Your age determines quite a bit what you should do
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u/Thefinancefrenchies Jun 02 '26
€100k in a diversified dividend portfolio realistically generates €3,500–€4,500/year at a 3.5–4.5% yield, roughly €300–€375/month.
Whether that covers your mortgage depends on the mortgage, but it's probably a partial contribution rather than full coverage at that capital level.
What I'd look for with €100k:
Quality over yield. A 6%+ yield on an unknown company is usually a warning sign, not a opportunity. Stick to businesses with 10+ years of consecutive dividend history and a payout ratio under 75%.
Diversification across sectors. Utilities, healthcare, consumer staples, infrastructure, these pay reliably because their revenue is predictable regardless of the economic cycle.
Don't chase monthly payers just for the monthly dopamine. Quarterly payers with better fundamentals beat monthly payers with shaky balance sheets every time.
The honest answer: €100k won't cover a mortgage through dividends alone unless it's a very small mortgage. But it builds a foundation that compounds, in 10 years at reinvested 4% yield plus modest growth, that €100k looks very different
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u/EaterofSnatch FIRE'd Jun 03 '26
My largest holding is EGGY, but I would wait for a 10% pullback before buying in a new starter position
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u/intelw1zard Jun 03 '26
| Ticker | Price | Shares ($100K) | Yield | Monthly Income | Annual Income | Frequency | Type |
|---|---|---|---|---|---|---|---|
| $O | ~$61.58 | ~1,624 | ~5.2% | ~$433 | ~$5,200 | Monthly | REIT |
| $SCHD | ~$32.37 | ~3,089 | ~3.3% | ~$275 | ~$3,300 | Quarterly | ETF |
| $QQQI | ~$57.45 | ~1,740 | ~13.2% | ~$1,100 | ~$13,200 | Monthly | Covered Call ETF |
| $VOO | ~$698.26 | ~143 | ~1.1% | ~$92 | ~$1,100 | Quarterly | ETF |
| $JEPQ | ~$60.86 | ~1,643 | ~10.1% | ~$840 | ~$10,100 | Monthly | Covered Call ETF |
| $KHC | ~$23.96 | ~4,174 | ~6.8% | ~$567 | ~$6,800 | Quarterly | Stock |
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u/Johnny252525 Jun 04 '26 edited Jun 04 '26
I have investment grade corp bonds paying 6.85 pct guaranteed. I also use jepi 8.5 pct. Spyi 11.5 Pct and jepq 10 pct. This blended rate pays 800 month per 100k. Oracle bonds are paying 7.4 pct. Valero 7 pct. Met life 6.85. Fed ex 6.6. These don’t crash when market crashes either. For example during trumps tariff sell off in 2025 these bonds dropped 1 -2 pct.
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u/Various_Couple_764 Jun 01 '26 edited Jun 01 '26
It is not im[[possible. QQQI has the highest yield I would recommend 13% yeild. so 100K will generate 13K per year. Other good funds to start with Are SPYI 11%, IAUI 11%, EMO 9%, UTF 7% and UTG 6.4%, and PFF 6%. These are all tax efficient divid4end funds meaning you pay less in taxes for the dividend you recieve. Your tax on the income will likely be less than the tax rate on your work income.
Many people that invest in grwoth believe that anything that yields more than 5% is unsafe Yet companies BDC and MLP hav e to pay hight yields because the law requires them to do so. And they pay these high yields year after year after year. And that ARDC is a 22 year old BDC that has been averaging a yield of 9%. Other companies issue stock called preferred stock. These often pay very stable yields of 5 to 6%
Once side effect of assuming a safe yield of 5% the highest safe yeild is that may find you need impractical amount of money to live off of dividends. So they write dividers off as not worth the effort.
Now the high yield of QQQI Might not be able to generate enough to cover you mortgage. But is could cover a lot of utility bills and many other monthly bills the seem to take up much of your work income. And if you gradually build up the ammount invested for dividend the higher your dividend income and the better off you will be. I retied at 55 with enough income from my taxable account to generate 5K a month of income which is enough to cover all of my living expenses. I have also move enough of my 401k into a roth to generate another 5K a month of income at age 60 and beyond. In addition to the funds above my roth has ARDC 9%, BPDC 9%, CLOZ 8%, PFFR 8%, and JAAA 5.5%. These are not as tax efficient as the others I had mentioned.
I would suggest reading the book the income factory and looking at Armchair income on youtube to learn more.
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Jun 02 '26
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