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Strategy targets $6,600 a month in dividend income using three buckets
The plan cites a 4.7% 10-year Treasury as a risk-free benchmark and contrasts qualified-dividend tax rates with higher ordinary-income treatment for REITs and BDCs.
A strategy highlighted by Yahoo Finance outlines how investors can aim to generate about $6,600 per month, or roughly $79,200 annually, by building a dividend portfolio across three income “buckets,” each with different risk and yield characteristics.
The framework sets the 10-year Treasury at 4.7% as a “sleep-at-night” hurdle, then points to different examples for each tier: Johnson & Johnson for dividend growth, Realty Income for hybrid monthly income, and Main Street Capital for aggressive yield.
For the dividend growth bucket, Yahoo Finance says Johnson & Johnson yields about 2.0% and recently raised its quarterly dividend to $1.34, extending what the article describes as 64 consecutive years of increases.
The article also emphasizes a tax tradeoff, noting that REIT and BDC distributions can be taxed up to 37% as ordinary income, while qualified dividends are taxed at 20%, potentially narrowing the high-yield advantage even if cash payouts appear higher.