— According to Passiv, every 1% yield on a $100,000 portfolio pays out exactly $83.33 a month in cash flow. A 6% yield gets you $500/month, but chasing a 12% yield ($1,000/month) usually means taking on covered calls or leverage that can eat into your long-term capital. Current Market Outlook As yields on cash and GICs slide, a lot of income investors are pivoting back into dividend stocks and monthly ETFs. The trap to watch out for is yield vs. total return. High monthly payouts look great on paper, but funds using covered calls give up upside in a bull market, and leveraged funds get hit twice as hard when things pull back. High yield isn't free money, it's almost always a trade-off against future growth. In short: Pushing past a 6% payout ($500/mo on $100k) usually forces you into covered calls or leverage that cap long-term growth, always evaluate total return over just the monthly payout. 🇨🇦 CAD Investors: $HDIF – Harvest Div. Monthly Income ETF $HHL – Harvest Healthcare Leaders ETF $VDY - Vanguard FTSE 🇨🇦 High Dividend $XEI - iShares TSX High Dividend ETF 🇺🇸 USD Investors: $JEPI – JPMorgan Equity Prem. Income ETF $SCHD – Schwab U.S. Dividend Equity ETF $GPIX - GS S&P 500 Income ETF $GPIQ - GS Nasdaq-100 Income ETF $JEPQ - JPMorgan NASDAQ Income ETF When you build an income sleeve, are you sticking to pure total return, or are you prioritizing high monthly cash flow right now? — This is for educational purposes only and is not financial advice.
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Alessandro @alessandro.invests · 16d
Genuine question: Why invest for income during years where investment income isn’t needed? Wouldn’t going all in on growrh maximize your return where you would then be able to take that appreciated capital and convert your portfolio to income focused?
