Seeking Alpha presents an insightful article on creating a dividend portfolio to live off dividends forever, titled “Invest $1 Million In These 7 Funds To Live On Dividends Forever.” The article explores how a strategic investment of $1 million across seven different funds can provide sustainable income through dividends. Here’s a summarized version of the key points, encouraging readers to visit Seeking Alpha for the complete article.

• Retirement Income Estimate: Aiming for an annual income of around $50,000, which aligns with average income requirements for retirees in the U.S.
• Dividends Over Selling Assets: Preferring dividend income over selling stocks and bonds to reduce the sequence of returns risk.

1. Schwab U.S. Dividend Equity ETF (SCHD):
• Allocation: 50%
• Yield: 3.53%
• Income Contribution: $17,650
2. Virtus InfraCap U.S. Preferred Stock ETF (PFFA):
• Allocation: 10%
• Yield: 9.56%
• Income Contribution: $9,560
3. Alerian MLP ETF (AMLP):
• Allocation: 7.5%
• Yield: 8.24%
• Income Contribution: $6,180
4. Cohen & Steers Quality Income Realty Fund (RQI):
• Allocation: 10%
• Yield: 8.18%
• Income Contribution: $8,180
5. Cohen & Steers Infrastructure Fund (UTF):
• Allocation: 7.5%
• Yield: 8.74%
• Income Contribution: $6,555
6. JPMorgan Equity Premium Income ETF (JEPI):
• Allocation: 10%
• Yield: 8.40%
• Income Contribution: $8,400
7. VanEck BDC Income ETF (BIZD):
• Allocation: 5%
• Yield: 10.84%
• Income Contribution: $5,420

Portfolio Overview

• Total Income: $61,945 annually from a $1 million portfolio
• Diversification and Risk Management: The portfolio includes a mix of sectors and investment styles to mitigate risk.
• Focus on Dividend Stability: Emphasis on funds with a track record of stable dividends, balancing high yields with risk.

Investment Considerations

• Reinvestment Potential: The ability to reinvest surplus dividends for further growth.
• Personal Financial Advice: Importance of consulting with a financial advisor for personalized guidance.

For a detailed analysis of each fund and more comprehensive investment strategies, read the full Seeking Alpha article: “Invest $1 Million In These 7 Funds To Live On Dividends Forever”.

Conclusion

Crafting a Dividend-Focused Retirement Portfolio This approach outlined by Seeking Alpha provides a practical framework for retirees to generate sustainable income through dividends, offering a viable alternative to traditional retirement income strategies. It emphasizes the importance of diversification, dividend stability, and the potential benefits of reinvesting dividends for long-term financial security.