$1.75 Million Portfolio Generates $10,200 Monthly from Three Income Buckets
A $1.75 million portfolio can generate $10,200 per month in income by dividing into three buckets: stability, dividend growth, and higher-yield income.
The stability bucket holds between 12 to 24 months of living expenses in the iShares 0-3 Month Treasury Bond ETF (NYSEARCA: SGOV), which yields roughly 4% and carries no credit or duration risk.
The dividend growth sleeve consists of Johnson & Johnson (NYSE: JNJ) and P&G (NYSE: PG), yielding around 1.9% and 2.9%, respectively, with a history of annual increases in dividends.
To reach a blended yield of 7%, the higher-yield sleeve includes business development companies (BDCs), mortgage REITs, senior loan and CLO income funds, and equity covered-call ETFs, which carry a risk of distribution cuts and NAV erosion during market shocks.