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Earlier this month I gave a mid month update on the melting snowball. I think the end of month update will go into more detail of how things shake out, but for now I want to document my forward facing plans for pushing the snowball ahead.
When trying to maximize returns, while attempting to avoid catastrophic NAV loss, we need some heavy hitters. Obviously we’ve already covered QQQI as our next goal. 86 shares to self fund. 97 to reach our 2026 +12. That puts us at roughly $5,050 in value generating $59.56 per month or $714.72 a year. We already know the push into Dividend Aristocrats is an end goal state, but those are rarely high paying, just reliable.
Looking at a multitude of things including where cross-overs might lay regarding underlying holdings I’m considering JEPI, SPYI, O, and MAIN as my pillars.
| Ticker | Price | Dividend Yield | Dividend Cash |
|---|---|---|---|
| QQQI | $52 | 14.23% | $0.614 |
| JEPI | $60 | 7.98% | $0.34443 |
| SPYI | $52 | 11.84% | $0.5219 |
| O (Aristocrat) | $67 | 4.87% | $0.270 |
| MAIN | $58 | 7.50% | $0.260 |
QQQI, and SPYI are very new. JEPI is a little over 5 years old. O and MAIN are staples.
| Ticker | Shares to Self-Fund | Price to Self-Fund | Expected Monthly Dividend | Annual Dividend |
|---|---|---|---|---|
| QQQI | 85 + 12 = 97 | $5,044 | $59.56 | $714.72 |
| JEPI | 175 + 12 = 187 | $11,220 | $64.41 | $772.92 |
| SPYI | 100 + 12 = 112 | $5,824 | $58.45 | $701.40 |
| O | 249 + 12 = 261 | $17, 487 | $70.47 | $845.64 |
| MAIN | 224 + 12 = 236 | $13,688 | $61.36 | $736.32 |
| Total | $53,263 | $314.25 | $3,771 |
So we need $53,000 to get less than one quarter of our dividend goal. That same $53,000 purely into QQQI would give us 1019 shares. Generating $625.66 per month, and $7507.92 per year. Putting us almost three quarters to our goal. The issue lies in our risk. QQQI is new, and holds pretty steady at its price, but has no growth. O shows steady growth on top of the dividends at 6.7% last 5 years. MAIN at 61% growth last 5 years dividends aside.
This appears to be the most stable method of reaching my goal. Chasing higher yields comes with significant share value loss and that is something that isn’t helping the snowball at all. The issue is that while buying these funds to their self funding numbers will add diversified stability, it seems pretty clear that reaching the $1000 a month dividend goal is going to require skyrocketing the QQQI. While MAIN’s growth is probably not sustainable long term, 60% growth for the last 5 years seems attractive enough to warrant attention. I think my plan will revolve around a 2 fold strategy. For every 10 QQQI, I’ll focus on 1 MAIN. That would end up with 101 shares of MAIN by the time we get QQQI to the $625/month.
Combined with my current 2 month average of $240 in Vanguard dividends, and $125 in Robinhood dividends this would push us to $1,000 a month. I guess I have some insane game grinding to do.
I do want to point out SCHD as something I want to own more of, but at this early snowball phase, I want more frequent dividends than quarterly.
~~Miniwing~~
Stoic, Investor, Parent
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