Two Alternatives For A Potential $5000 Monthly Income

Jun. 14, 2025 8:05 AM ET, , , , , , , , , , , , , , , , , , , , 22 Comments

Summary

  • Traditionally, a large portion of equity returns has come from two factors - reinvested dividends and compounding.
  • We present two income-focused approaches: a fund-based portfolio for hands-off investors and a stock-plus-ETF portfolio for active investors.
  • Both strategies target a 6% income yield, capital preservation, and inflation-beating growth, but differ in maintenance ask and risk profiles.
  • The fund-based option is best for most retirees, while the stock-plus-ETF approach suits active investors willing to monitor and adjust their holdings.
  • Looking for more investing ideas like this one? Get them exclusively at High Income DIY Portfolios. Learn More »

Investment, income, savings and balance concept. Text INCOME with get money icon on wooden cube blocks with coins stacks and line graph on the top, isolated on white background with copy space.

Techa Tungateja

Introduction:

The stock market is once again near its all-time highs. This is besides the fact that there was extreme panic just two months ago due to trade-related policies. Even though nothing much has changed on the surface. The deadline



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This article was written by

Financially Free Investor is a financial writer with 25 years investment experience. He focuses on investing in dividend-growing stocks with a long-term horizon. He applies a unique 3-basket investment approach that aims for 30% lower drawdowns, 6% current income, and market-beating growth on a long-term basis and he focuses on dividend-growing stocks with a long-term horizon.

He runs the investing group High Income DIY Portfolios which provides vital strategies for portfolio management and asset allocation to help create stable, long-term passive income with sustainable yields. The service includes a total of 10 model portfolios with a range of income targets for varying levels of risk, buy and sell alerts, and live chat. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ABT, ABBV, CI, JNJ, PFE, NVS, NVO, AZN, UNH, CL, CLX, UL, NSRGY, PG, TSN, ADM, BTI, MO, PM, KO, PEP, EXC, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, O, NNN, WPC, ARCC, ARDC, AWF, CII, CHI, DNP, PEO, USA, UTF, UTG, RFI, RNP, RQI, TLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes. For the complete list of our LONG positions, please see our profile on Seeking Alpha.

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