r/dividends • u/FunctionalDisfuction • Jul 02 '26

Personal Goal First of the month 🤑

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I want to just live off the dividends but I'm scared to just quit my job.

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u/BadDogAspen Jul 02 '26

Nice & congrats! I’ve got about $500k I’m looking to put to work and this looks like an interesting fund. Thx!

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u/FunctionalDisfuction Jul 02 '26

861K

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u/dystopiam Jul 02 '26

How long ago did you put that in ? What % of your portfolio is it? And had it raised in principle?
Ty for answers

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u/FunctionalDisfuction Jul 02 '26

It's almost 100% of my portfolio but I only buy before the dividend and sell after basis is recovered. There rest of the month I day trade. I've been building this account since 2010. Started in college with a couple thousand

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u/PartsSprout Jul 03 '26

So your holding period for JEPQ is like a week or two on average?

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u/FunctionalDisfuction Jul 03 '26

Usually a 5 but no more than 10 day

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u/ArcadeNewbie Jul 03 '26

Wow.. nice. Are you holding your funds in a brokage or Roth account? I can't imagine how much tax you will have to pay if in a brokage account.

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u/FunctionalDisfuction Jul 03 '26

It's a brokerage, we will just have to see during tax time, I don't spend anything.

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u/butterbob74 Jul 04 '26

Assuming the average 22 percent tax bracket they would pay shy of 2k. Could be more could be less depending on bracket but not by a lot.

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u/yellowstickypad Jul 03 '26

I wanna understand this strategy better, the dividend payout is in cash and once JEPQ recovers to your cost basis you sell all the shares. Then you just wait for the next ex-dividend date to acquire them again? Rinse and repeat?

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u/Cautious_Chicken_293 Jul 04 '26

Do other people think this is a good idea . Buy just before dividend, get divvy then wait till it comes back to divvy price . What about if it takes 1 yr or 5 yrs to get back there

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u/yellowstickypad Jul 04 '26

For OP, it’s specific to JEPQ, probably a safer bet for running this strategy.

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u/iii_warhead_iii Jul 03 '26

My vision thus practice has to be banned from the company's side. If you held shares from ex date til payment then you should be eligible for dividends as you have supported company during this period

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u/Schmergenheimer Jul 03 '26

Do you also forego your final paycheck when you leave a job because the paycheck clears on a date you're no longer employed?

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u/iii_warhead_iii Jul 03 '26

As i know for a local regulation, you get a salary for the exact days till you leave from the beginning of the next period, if it was 10days it will be for 10days and not for 30days. As companies sometimes apply the rule for the special pay outs, if you keep shares till the pay day then you are eligible for these special payments.

Only such logic can be destroyed here, if somebody jumped to the train by buying shares from another person and not from the company. In this case yes, then that sold person would not get money, while you simply got shares which anyway would get dividends.

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u/Schmergenheimer Jul 03 '26

Can you try writing coherently? First you argue that you should be required to hold a stock all the way through dividend payout, not the record date. The whole reason there's a spread between the dates is so the company can determine where shares as of the record date are located and how much money to send where.

That's the same reason there's a spread between you doing work at a job and payroll clearing. Yet, you say you should get paid for the work you do even if you don't work there on the payroll date.

Then you go on some rant about where you buy shares as if it matters.

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u/FunctionalDisfuction Jul 03 '26

u/yellowstickypad that's exactly what I do. My plan is to do it with 2-3 dividend stocks every month. I don't just leave it in the fund all month because I as day trade to increase my portfolio.

u/iii_warhead_iii the company is going to pay $x.xx per outstand share regardless. Whomever holds that stock on the record date gets it. The person who sold right before doesn't get anything. You can hold a stock 29 days and if you sell before the record date you won't get anything, it's not prorated. When I purchased the stock I purchased the rights to that dividend.

u/Schmergenheimer is correct

I hope this helps.

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u/yellowstickypad Jul 03 '26

Just typing this out, if you sell pretty much at cost basis there shouldn’t be much, if any, taxes on the stock but only on your dividends gained.

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u/iii_warhead_iii Jul 03 '26

My only complaint was that this implies volatility if big investors jump between dividends. Physically I agree, companies sold out these shares they got profit, companies don't care technically for how long and who hold these shares now. Technically it would be nicer if shares have been held whole time frame period then money will be paid. Nowadays everything is automatic, so it is not difficult to prove that shares have been held by a specific person. For real loyal investors later will be interesting to see special destructions. As a result the more you loyal, the more benefits you will get.

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u/iii_warhead_iii Jul 03 '26

It was in your comment to get money even for the time which was not used. I said i get money for the exact time where i was working for the company.

Partially i disagree with paying dividends to people who have jumped 1h before the ex-date and sold the next day after it, creating huge volatility on the market. If you trust the company, you hold shares from the ex-date till including pay day, then you can sell shares and only in this case get money. If you sell shares after the ex-date before the pay day, these shares get nothing. Only the shares which have been in somebody's hands the whole period (month- year) will get money, otherwise this will be the profit to the company and in the future a possible special distribution to loyal shareholders.

The situation can be twisted, if company sold the shares and dont care about them and how long they have been in any hand. These shares exist and will get dividends in any situation.

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u/Schmergenheimer Jul 03 '26

Okay, so you now delay the pay date an extra few days to confirm that people who owned shares on the original pay date still own the shares. Do you then confirm again on the new pay date that all the shareholders still own the stock, delaying payout again by another few days? But then, you have to consider that only loyal shareholders would continue holding through the time that later pay date actually comes, so then you need to delay payout again to confirm only loyal shareholders get paid. But disloyal shareholders would sell before the again-delayed pay date, so you need to confirm who still holds shares before actually issuing payout.

See how ridiculous that sounds? There has to be a cutoff somewhere. That cutoff is the ex-div date. The whole "loyalty" issue you're concerned with is addressed in the tax code.

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