Living off dividend income

What at wonderful invention is the internet. With it you can find out that there are many people living off their dividend income. You not only have retirees living of their portfolio but also savvy young and mid age people with portfolios that generate them income.

This is not financial advice. This is just my opinion base on my understanding.

You can find many example all over the internet of people posting their current dividend income portfolio.

You may notice a trend with the kind of same ETFs and stocks and investment strategy.

For example here is a possible portfolio

ETFs like NUSI, QYLD and RYLD are use for monthly dividend paying income. You may notice that many people reinvest the dividend income for this kinds of ETFs. I think the purpose of this kind of ETFs is to replace bonds. Since bond yield is being so low in the past few years.

In the same portfolio, you may also notice that people tend to have a mix of paying dividends stocks such as MO, VZ, XOM, ARB, PM, ETC. You may wants to look to terms know as blue chip dividend stocks or aristocrats. The point is, this kind of stocks are use to live off dividends income.

Here is another kind of similar example for a possible portfolio

ETFs like NUSI, QYLD, RYLD and JEPI are use for monthly dividend Paying income. Same as before reinvesting the dividends income.

In the same portfolio as before, you may have MSFT, JNJ, KO, ETC.

The main point of the portfolio is to get it to critical point where your lifestyle expenses cannot keep up with the income that the portfolio generate. Meaning your total cashflow is greater than your total expenses.

That thing just keep growing as time goes on. Eventually when you move on. Since you can’t take that money with you, that generational wealth get transfer to your love ones.

Now, start and adjust as you go.