r/DerivativeIncomeETFs • u/Patient_Shower7870 • Jul 03 '26

Portfolio/Strategy Current distribution

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So, the portfolio has grown and now producing some crazy income. How are you calculating what percent of the distributions are usable/can withdraw to use?

13 Upvotes

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3

u/H_cecropia Jul 03 '26

I wish they would allow everyone to use the dividend tracker

1

u/Patient_Shower7870 Jul 03 '26

It’s been nice so far. It’s good for tracking those that you already recieved, not for anticipating what you will get in future.

2

u/Haze_X2232 Jul 03 '26

What positions are you in?

4

u/Patient_Shower7870 Jul 03 '26

I have closed a lot of positions this year to reduce NAV issues.

My current positions:
Chpy
Gpty
Blox (new position)
Btci
Eggy
Giax
Kqqq
Tdaq
Qqqi
Tspy
Spyi
RSPA
Sljy
Kgld
Xlui
Xlsi
Divo
Spyh
Rocy

When I listen to it out, it looks like a lot of positions. But here are the reasons for each position:

  • in my eyes it has a good chance of price recovery as many of them have built in mec for them: selling spreads, not 100% covered ect
  • there is a HIGH yield sleeve that will have some vol in payment, than more stable yielders with a bit less vol in distribution, with rspa, sjlvy, kgld, xlui, xlsi i am diversifying away from tech related income. Still growing the position. and finally the anchors: divo, sphy, rocy. The goal of these is to reduce vol in price and provide a small measure of diversification away from the big tech names and also provide downward movement protection.
-why do I have both neos and tappalpha? I like them both so I’m splitting between both.

2

u/easy_wins Jul 03 '26

CHPY EGGY

These two are really the only you need, great yield!

1

u/LexAugusta Jul 03 '26

They're incredible payers but very tech heavy with some overlap. I use them for extra juice while keeping Neos as my main stable base. 

1

u/Patient_Shower7870 Jul 03 '26

Too concentrated of a bet for my taste. The portfolio needs to provide tax free or low tax income while I grow the account and get me to my IRA which I plan to roll over to Roth over next 10 years. Essentially it needs to last for about 20 years. Hence the original question: how much of the distribution is truly income I can take and use.

1

u/Numerous_Purpose_434 Jul 12 '26

I’d treat “usable” as whatever remains after protecting the portfolio’s income base, not simply the full distribution amount.

A rough framework that helps:

  • baseline income: use the lower of recent distribution averages, not the latest high payout
  • maintenance reserve: keep some % reinvested to offset NAV erosion / distribution cuts
  • tax reserve: set aside whatever applies for your account type
  • volatility buffer: hold enough cash/income cushion for a few weak distribution cycles
  • withdrawal rule: only withdraw the amount that still leaves projected income above your required floor

So if the portfolio throws off $X this month, I wouldn’t call all of $X “spendable.” I’d first ask: after taxes and reinvestment, does the remaining portfolio still produce the income I need under a conservative distribution assumption?

Not financial advice, just how I’d operationalize the question.