Aug. 2 at 2:23 PM
A dividend funnel strategy using income ETFs.
Example:
$100,000 in
$CHPY generates roughly
$40,000 in annual dividends based on current distribution levels.
The challenge:
You want to rebalance and diversify, but you don't want to sell your position.
One approach investors are exploring:
Direct future dividend cash flow into a new allocation.
Example stack:
$OVL +
$TDAQ
Blended yield: 13.64%
By redirecting distributions for 12 months and using DRIP, the goal is to increase future annual income while gradually building exposure to:
• Semiconductors
• QQQ-style growth exposure
• S&P 500 exposure
The key advantage:
You rebalance through cash flow instead of selling shares.
Of course, high-yield ETFs come with risks, including distribution changes, volatility, and potential downside in the underlying assets.
Income strategy or growth strategy?
Which approach do you prefer?