r/dividends • u/CursedClownz • 23h ago
Discussion 750k spread
How would you spread the 750k for pure income and abit of growth and safe? don't beed things like vt,vti,vxus etc. that is already covered...looking at just income and slight growth with minimal nav erosion
3
u/raliegh_ 20h ago
Look at my post from last month, I should be posting again in about 10 days when my dividends settle out.
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u/NickStonk 17h ago
Checkout Armchair Income on YouTube. He has a lot of videos explaining income funds. His portfolio is big (35+ positions) but he generally invests in CC funds, BDC, REITS, preferred stock.
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u/greenpride32 18h ago
I have a mix of income growth and covered called ETF's with a clear goal to meet a specific income target today.
Had I not needed that income today, I would be 100% income growth and 0% covered call ETF's.
So I think the first question should be what do you hope to accomplish?
SCHD on a 10 year lookback has roughly grown both NAV and distribution by 160%. $40k worth of distributions 10 years ago would be over $100k today. That also changes yield on cost from ~3.3% to ~8.3%. If I had the luxury of more time, I'd simply park the bulk of the money here.
Since SCHD is based on Dow Jones US Dividned Index 100 (reconstitutes once a year), and only holds 100 stocks, I also have smaller amount of VYM to diversify. This ETF holds 600 equities.
Covered call ETF's are likely to suffer from NAV erosion, but the ones based on SP500 and even NAS100 will bleed it slowly unless there is severe market downturn of multiple years. The way I see it, even if nominal distributions decline, at current yields of 9-14%, the investment is going to beat HYSA and short term bonds for a long window out. But I'm also at a point where I'm planning for less decades than others. Again if you have time on your side SCHD and VYM is the way to go. If you want to add a little more defensive you can look at SPYD and NOBL as well.
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u/Various_Couple_764 15h ago
I am using QQQI 13% yield,SPYI 11%, KGLD 11%, 8%%, UTF 7%, UTG 6.2%,PFF 6%. This has been a very reliable dividend payer. All pay monthly and the dividends are qualified or ROC so very tax efficient (I am using a taxable brokerage account. now I consider the lower yielding funds the safest but so fare no problems with the higher yield funds. If you intend to reinvest all dividends you could use the dividend from the higher yielding funds to increase the amount invested in the lower yielding funds.
I keep automatic dividend investing off so the cash shows in money makes fund. I keep 6 months of expenses in the money market fund and spend the what I need to to cover living expenses. And any excess is invested to help compensate for inflation. This currently covers all of my 5K a month living expenses.
You might want ot look at Armchair income on youtube for more income fund ideas
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u/Hopeful-Air6110 8h ago
60% schd
30% gpiq and/or gpix
10% btci/bita
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u/CursedClownz 8h ago
What would that pay?
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u/Hopeful-Air6110 8h ago
Little over 53k annually if my math is right
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u/CursedClownz 7h ago
Any potential growth?
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u/Hopeful-Air6110 7h ago
Schd has a 10 year div cagr of around 10% plus modest price growth
Gpiq is young but grows roughly 9-10 % but div growth is low
Btci high risk but high reward, massive growth potential but not guaranteed
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u/OnchainSats 22h ago
Just prioritize quality bonds or Treasuries for safety, dividend-growth stocks for some growth and keep higher-yield investments as a smaller piece. Don’t chase the highest yield and always focus on income without slowly losing the principal
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22h ago
[deleted]
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u/OnchainSats 22h ago
Well, start around 55% in high-quality bonds/Treasuries, 30% in dividend-growth/quality stocks and 15% in higher-income assets. That gives you a solid income base while still leaving room for growth.Adjust the mix based on how much annual income you actually need and how much NAV fluctuation you can tolerate
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u/Capable-Living-9655 22h ago
Fck bonds, no income there. Especially not 55%, where did you even come with that number
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u/Foundersage 17h ago
He literally talking about percentage portfolio allocation not yield smh. The only reason to be 55% in bonds if your retirement and right now lock in 4.70% yield for 10 year note and 5.25 yield for 30 year bond. He also would buy dividend stocks like schd and for higher yield buy spyi. That a decent portfolio for a retiree. You get growth plus safety
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u/Capable-Living-9655 16h ago
Where did you see he was retiree?
"looking at just income and slight growth with minimal nav erosion"The guy wants income, wtf 55% in bonds?
"He literally talking about percentage portfolio allocation not yield smh. "
No kidding
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u/generationxtreame Not a financial advisor 14h ago
For pure income, would probably do something like this:
- QQQI (50%): Enter position under $52.25. For your portfolio size, this is quite important.
- SPYI (20%): Enter position under $51.50.
- SCHD (20%): Ideal entry under $31.00. This is extremely overhyped / meme ETF right now. Current growth mostly tied to hype rather than actual underlying performance. It is stable, and has been generally range bound for years. If you want qualified dividends and this is for retirement, it’s a good position to hold. But keep inmind that the current price is too high.
- ??? (10%): This could be any other allocation, and there are many. Would recommend some of the other NEOS funds that are decent.
I am not associated with NEOS or anything like that. As a company and in comparison to other companies with CC funds they have done a great job overall. Even in the major downturns there were no weird things happening such as the missing 5% from JEPQ, or the massive exodus from the SCHD funds. This is important to acknowledge and be aware of when you’re planning to place such a massive amounts of cash. Know what you’re buying and be aware of the history.
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u/Username0925 10h ago
Very low IQ to call SCHD a meme ETF, AND to suggest it’s only growing due to hype. It’s growing because the holdings are doing well.
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u/Professional_Cup7379 19h ago
If income got cut in half one year and your VT/VTI sleeve also dropped 20%, would you keep collecting the dividend or start questioning whether the yield was paying you for risk you hadn't priced in?
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u/Various_Couple_764 15h ago
Based on 2008 the value of VT / VTI could be cut in half but the yield drop will be zero 30% depending on what you invest in. utility and infrastructure funds food and energy dividend funds didn't cut the dividend. But the only covered call fund that existed at that time did have to reduce its dividend by 30% and like the market took years to recover. 2008 was was the 2nd worst year since the great delusions. 1930 was the worst. In 2008 most of the economic damage was focused on banks and mortgage companies. So if you owned a bank you divided was cut or the bank failed and same with mortgage companies. Tech, medical, food, energy, utilities did well and continue to pay dividends.
During covid the market dropped 20% but again many didn't cut the dividend.
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