Income Investing Results - January 2026

[Flieger]

Here's a real world breakdown of a portfolio designed as a blend of growth and income. The total yield of about $200k approaches 4%. You can see that a modest allocation (< 13%) of the highest yielding component, "dividend income," comprises 1/3 of the total income.

Currently, I am nearing my 59th birthday, so I have utilized only the taxable dividends since retiring in 2021. Next year, I'll likely add the Roth divs, convert from trad IRA up to the 12% ceiling, and sell taxable shares for the rest. This is the most tax efficient approach I've come up with so far.

There are 72 unique holdings involved, so I'll possibly address that in another post at some point.

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That's a very nice (sizable) stash! Congrats! Income portion of investment would be much lower (maybe closer to yours) if I had that amount to utilize. Once I start SS, I will adjust accordingly and hopefully re-establish a little accumulation while continuing to live well.

Flieger

 

[dobig]

Here's a real world breakdown of a portfolio designed as a blend of growth and income. The total yield of about $200k approaches 4%. You can see that a modest allocation (< 13%) of the highest yielding component, "dividend income," comprises 1/3 of the total income.

Currently, I am nearing my 59th birthday, so I have utilized only the taxable dividends since retiring in 2021. Next year, I'll likely add the Roth divs, convert from trad IRA up to the 12% ceiling, and sell taxable shares for the rest. This is the most tax efficient approach I've come up with so far.

There are 72 unique holdings involved, so I'll possibly address that in another post at some point.

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Very impressive! Looking forward to comparing your holdings to my own if you decide to post them.

We are currently a couple years behind you at 55 and getting ready to retire this year with around half your portfolio. 64% of which is taxable. Our income in our taxable is right around $70,000 with a yield of 3.98%. Core positions are dividend growth etfs such as DGRO, SCHD, FDVV, VIG and smaller positions in a blend of growth and conservative dividend etfs. Have started to build up international etfs on the value and dividend tilt and also have smaller allocations to income funds such as GPIX, SPYI, UTG, PFFA, PDI. Goal is growing dividends that keep up with and beat inflation.


Like you we are planning to wait until 59 1/2 to tap into retirement accounts and also convert to our Roth to the 12% limit. Our retirement accounts are heavily into growth and global. Last I checked we were somewhere around 49 total holdings in our portfolio.

There are a few dividend/income oriented investors on here and it's always nice to find another.

 

[L-5Player]

I hesitated to post that because I wasn't trying to advertise the portfolio size, but I really like the table layout (which I can't separate from the numbers) so I decided to share it as is.

It's interesting for me to understand my allocations not just in generic terms with equities and bonds, but also to growth and income. These investing approaches are often compared as if they're a dichotomy, but in reality they can be blended for flexibility.

Here's a list of the higher yielding tickers:
ADX, AMLP, ARCC, BST, BTCI, CEFS, IYRI, JEPI, JEPQ, MAIN, NXJ, PDI, PDO, PFFA, RVT, SPHY, SPYI, THQ, UTF

More traditional dividend stocks:
ABBV, AEP, CSCO, CVX, ES, JNJ, JPM, KO, LOW, MCD, MO, NEE, O, OKE, PAYX, PEG, PEP, PG, PRU, PSTL, QCOM, RTX, SBUX, SCHD, SO, UPS, VYMI, XOM, YUM

Growth stocks/funds:
AAPL, FBCG, FBGRX, FTIEX, FXAIX, MSFT, NVDA, ORCL, QQQ, V, VTI

 

[Flyfish1]

I hesitated to post that because I wasn't trying to advertise the portfolio size, but I really like the table layout so I decided to share it as is.

It's interesting for me to understand my allocations not just in generic terms with equities and bonds, but also to growth and income. These investing approaches are often compared as if they're a dichotomy, but in reality they can be blended for flexibility.

Yeah - it's a solid approach and a good sized stash. I took a slightly different approach with more emphasis on high yield tickers and REIT's. Outside the market we have additional real estate holdings and 7 figures of cash value life insurance. I do sort of regret putting that much into cash value life insurance, but got talked into it years ago and it's too late now. We have started our drawdown on that calculated to get us to age 100, and will be tax free for many years. I don't see any reason to ever draw the main assets unless something catastrophic happens. They will grow slowly through reinvestment and dividend growth in some of the holdings. We are very much in the go - go spend years and the income is nice. I haven't started SS yet- I might this year, then again I might not.....and wait until FRA. I received good news from my Cardiologist that I'll likely live a long life so I'll probably delay SS. DW was at the appt. and I thought for a brief second she didn't look happy at the longevity news....

 

[Spock]

.... DW was at the appt. and I thought for a brief second she didn't look happy at the longevity news....

Another vote against the life insurance and why I always packed my own suit case when going on solo business trips...

 

[stoic1]

This is a great thread. @L-5Player ty for sharing your detailed portfolio. I personally don't like to manage a lot of positions so have significantly streamlined over the last few years and continue to do so. Here is my current portfolio, would love to get opinions on it. I'm still in the accumulation phase of life and expect to retire in 5-6 years

Symbol	Fund Name	Weight %
EGRIX	Eaton Vance Global Macro Absolute Return Advantage Fund Class I	16.81%
VGSLX	Vanguard Real Estate Index Fund Admiral Shares	15.27%
CPEFX	Cascade Private Capital Fund (formerly Barings Private Equity)	10.74%
XILSX	Pioneer ILS Interval Fund	8.93%
BOXX	Alpha Architect 1-3 Month Box ETF	7.85%
EPDIX	EuroPac International Dividend Income Fund Class I	6.20%
REMVX	RBC Emerging Markets Value Equity Fund (I Share)	5.84%
REVIX	T. Rowe Price Emerging Markets Discovery Stock Fund I Class	5.75%
YAFIX	AMG Yacktman Focused Fund - Class I	5.71%
KGIIX	Kopernik International Fund Class I	5.68%
FPADX	Fidelity Emerging Markets Index Fund	4.04%
AVALX	Aegis Value Fund Class I	2.71%
AEPGX	American Funds EuroPacific Growth Fund Class A	1.78%
VDIPX	Vanguard Developed Markets Index Fund Institutional Plus Shares	0.97%
NICHX	Variant Alternative Income Fund	0.59%
VTMGX	Vanguard Developed Markets Index Fund Admiral Shares	0.52%
DFIVX	DFA International Value Portfolio Institutional Class	0.32%
SPY	SPDR S&P 500 ETF Trust	0.29%

 

[L-5Player]

I took a slightly different approach with more emphasis on high yield tickers and REIT's

I think about this too sometimes. I'm a bit brainwashed by the 4% rule, so the idea of generating, say, 8% in yield and withdrawing most of it is strange to me. I know it's a valid approach if you choose the right securities, but it seems to break the rules and I'm not sure how to wrap my head around what is safe.

Also, the prospect of drawing a large lump sum for a one-off expense isn't as straightforward, because it depletes assets that generate income. So I think of the low-yield index funds as a potential source for that.

Congrats on your cardiology results. Health is the variable that, when not so good, makes even the best financial strategy fade into the background!

 

[Flyfish1]

Also, the prospect of drawing a large lump sum for a one-off expense isn't as straightforward, because it depletes assets that generate income. So I think of the low-yield index funds as a potential source for that.

Yep - I agree , I don't want to ever have to sell the goose that lays the eggs. So, I do have a chunk of cash and then back up to that is cash value life insurance and we reduce travel for a year, or if I had to a HELOC as I have the strong cash flow, to pay that off. Lots of ways to do this.

Thanks on the health comments. I have to work on my joke delivery...

 

[Flieger]

Was positive for the month/year until the last day! Ugh! Anyway, following are January results. Income pretty good, although my WD exceeded due to extra expenses from a Hawaii trip. Cost basis is inclusive of the larger WD, but overall Portfolio down 0.2% Jan & YTD.

Holdings remain the same. May add/subtract a little based on more detailed analysis later today, but no major changes planned at this time to holdings and/or allocation splits.

Flieger

 

[Flyfish1]

I'm up 2.74% for the month of Jan. with strong gains in my REIT's.

 

[shridog]

Up 3.4% this month. Thanks goes to the PIMCO CEFs and then to a equity only holding, Ast Spacemobile, which was up 22+% this month. CEFs make up42% of the portfolio with the PIMCO sweet being 34% of the portfolio.

 

[Flieger]

I'm up 2.74% for the month of Jan. with strong gains in my REIT's.

Up 3.4% this month. Thanks goes to the PIMCO CEFs and then to a equity only holding, Ast Spacemobile, which was up 22+% this month. CEFs make up42% of the portfolio with the PIMCO sweet being 34% of the portfolio.

Have you guys started taking distributions? Without WD I'm up 2.2%

Flieger

 

[Flyfish1]

For me yes, that is after my monthly withdrawal.

 

[shridog]

@Flieger Most of the Pimco Suite is in the Roth accounts. Sometimes auto re-invest and sometimes used for other investments. Have never withdrawn any $$ from the Roth accounts. I do have some in the taxable account and those distributions are used to buy VTI or VUG (equity ETFs). There is a bit in the Trads, but minor compared to the Preferreds and Baby Bonds. Distributions pay for RMD and other investments. So, basically we do not spend the Pimco distributions.

 

[Flieger]

For me yes, that is after my monthly withdrawal.

Would you care to share investments? I would love to see those that allow a (reasonable) WD, but still have 2.74% (~33% annualized gain) after WD's. S&P was 0.6% and Nasdaq 0.18% this past month. I'd like some ideas for changes to my investments for such gains.

Flieger

 

[Flyfish1]

@Flieger - sent you a DM. Too many positions to post.

 

[Eucerin]

For those of you who has large taxable incomes in a non-retirement account, and not eligible for Medicare yet, your health insurance may cause fortune