I would be putting $50,000 each year into dividend paying stocks (and adjust 401k/IRA accordingly to maintain asset allocation).
1/3 into Dow components (Dogs of the Dow type strategy) will yield around 2-3%, 10 stocks
1/3 into financials and utilities (this is to get higher yield) should yield 3-5% 10-20 stocks
1/3 into small and mid cap dividend stocks. This should give more growth. 1-2% yield. 20-60 stocks.
year 1, go with dow
year 2 add the utilities
year 3 add the small caps
year 4, put 17k into each of the 3.
The small caps/mid caps is something which takes some homework. If this amount of work does not appeal to you, then find a mutual fund. I would put all dividends in a money market and add to stock allocation the next year.
If you buy the stocks, you control the selling points. If you buy a mutual fund, you will lose control of when fund buys and sells.
If you have $1 M to invest, consider this fund:
MFQTX
It is the most tax efficient fund I can find.