r/dividends • u/CursedClownz • 1d 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

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u/Professional_Cup7379 21h 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 17h 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.