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Capital Required ๐Ÿšจ High Risk

Target: $1,000 / Month

Ticker: XYLD โ€ข Yield: 10.1% โ€ข Growth (5yr): 0.5%

Sector
Covered Call ETF
Estimated Capital Needed (Today)
$118,811.88
to generate $1,000 monthly immediately

๐Ÿ’ฐ Net: approx. $846 /mo after tax.

โณ The Waiting Game: Save Money by Holding

Currently, you need $118,811.88. But if XYLD grows its dividend by 0.5% annually, you can invest less today and hit your goal later.

Wait 1 Y Save $591
$118,221
Wait 3 Y Save $1,765
$117,047
Wait 5 Y Save $2,926
$115,886
Wait 10 Y Save $5,780
$113,031

*Assumes constant dividend reinvestment is NOT included, only dividend growth.

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โ˜ƒ๏ธ The Snowball Effect (10-Year DRIP)

Reinvesting all dividends with constant yield:

YearTotal ValueMonthly Income
Year 1$130,812+$1,101/mo
Year 3$158,570+$1,335/mo
Year 5$192,219+$1,618/mo
Year 10$310,980+$2,617/mo

Real Life Impact

๐Ÿ  Rent is FREE! Living cost-free is a superpower.

Analysis Breakdown

Introduction

Looking to cover $1000.00 in monthly bills with dividends? Based on the yield of Global X S&P 500 Covered Call (XYLD), your target portfolio size is around $118,811.88. Note that this math relies on a 10.10% yield.

About XYLD

Investors in the Covered Call ETF sector often watch Global X S&P 500 Covered Call (XYLD). Note that the market prices this with a risk premium.

Investment Context

Why XYLD? Because at $118,811.88 capital, yield stability becomes your best friend.

Disclaimer: Informational only. Not financial advice. Yields vary. Past performance does not guarantee future results.

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