Want $250,000 a Year in Dividends? Here's the Best Low-Risk Portfolio Mix for a $3 Million Nest Egg

"If you have a $3 million nest egg to invest, a dividend-centered approach can be a great way to generate steady income. Even with a portfolio that size, it is important not to chase the highest yields you can find. With so many covered call and premium income ETFs offering 8 percent or even 10 percent yields, it can be tempting to forget the traditional 4 percent withdrawal rule. But maximizing yield often comes with hidden risks."

"High-yield ETFs can work well as part of a portfolio, but they are not always the best foundation for investors who want stability and predictable income. These funds can produce large swings in monthly payouts, and they typically sacrifice long-term growth for high current income. It is easy to take a generous yield at face value and ignore how little your underlying shares may appreciate over time. Yet capital gains play a critical role in building and protecting wealth, no matter your age."

A dividend-centered strategy can produce steady income from a $3 million nest egg, but yield-chasing carries significant risks. Covered call and premium income ETFs advertising 8–10% yields may offer attractive current income while causing large swings in payouts and reducing long-term capital appreciation. Capital gains remain an essential component for building and preserving wealth alongside dividends. Achieving $250,000 annual income from $3 million requires about an 8.3% yield, which often pushes investors toward higher-risk assets. ETFs such as DVY can provide meaningful yield as a portfolio backbone, with covered-call strategies and high-yield stocks used to supplement income. Consider consulting a financial advisor for a comprehensive portfolio review.

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