The Dividend Stack Strategy: How I’m Building $8K/Month in Passive Income
The “Dividend Stack” strategy I’m using to scale income while managing risk, with a yield amplifier twist.
What if your portfolio could cover your entire lifestyle without ever selling a single share?
That is the goal I am building toward. I am not chasing the next hype stock or trying to time the market. Instead, I am using a system I call The Dividend Stack Strategy. It is a structured approach to dividend investing that blends consistency, high income, and intentional reinvestment.
Right now, my portfolio produces around three thousand dollars per month in dividend income. My goal is to grow that to eight thousand dollars per month, enough to live comfortably without having to draw down any of the principal. But this strategy is not just about income. It is about compounding wealth with purpose and creating a financial engine that funds my life with increasing reliability every month.
When I first began investing for income, I made a lot of mistakes. I chased unsustainably high yields. I overlooked the importance of total return. I underestimated how volatility and poor coverage could silently erode long-term performance. Eventually, I realized I needed a better system. That led me to study the structure of different income-generating assets, from ETFs and CEFs to BDCs and REITs. I paid close attention to payout patterns, NAV behavior, and how different assets performed during both bull and bear markets.
What I discovered was that income assets are not one-size-fits-all. Each category has strengths and weaknesses. Some are great for consistent cash flow. Others shine when markets are volatile. A few can amplify returns if used strategically. So I built a portfolio around those characteristics. I layered income sources in a way that would allow me to scale monthly cash flow while preserving capital and reducing stress.
That became The Dividend Stack Strategy.
By structuring my portfolio this way, I have been able to reinvest my cash flow intelligently. I direct income where it will have the most impact. I scale up the positions that offer stability, while still using targeted exposure to higher-yield opportunities. Combined with the business income I generate from my writing and product sales, I have steadily compounded both my income and my net worth.
Now I am not just investing for retirement. I am building a self-funding lifestyle that pays me month after month, whether I work or not.
In this article, I will walk you through exactly how the strategy works. I will show you how I divide my portfolio into income layers, what I look for in each tier, and how you can use this same approach to grow your own income stream. Whether your goal is one thousand dollars per month or ten thousand, this strategy offers a framework that can help you get there with confidence and clarity.
Want to get a well-rounded idea of where to start your investing journey? I have you covered here as well!
🔁 The Dividend Stack: 3-Tier Income Rotation
The idea is simple: Instead of betting everything on one type of fund or ETF, I build layers of income, each with a specific role in my portfolio.
🧱 Tier 1: Core Income (3–8% Yield)
These are the backbone of my dividend engine. They offer:
Stable NAVs
Sustainable payouts
Some capital growth over time
Core Holdings I Use:
DIVO – Dividend growth with covered calls
VNQ– REIT ETF
SCHD – Dividend growth ETF
RQI – High-quality REIT exposure
STK– Tech-focused covered call fund
Allocation Target: ~40% of portfolio
Purpose: Long-term compounders with reliable income
⚡️ Tier 2: High Octane Yield (9–15%)
This is where the income accelerates. I tap into option-based ETFs and CEFs that trade income for growth. These are riskier but when managed correctly, they supercharge cash flow.
Tactical Income Picks I Like:
JEPY – S&P 500 + daily reset options
QYLD – Nasdaq covered call ETF
XDTE – Synthetic 0DTE exposure
FEPI – Innovation sectors + income overlay
HSPX – S&P hedged call strategy
ETV/EXG – Global equity income CEFs
Allocation Target: ~30% of portfolio
Purpose: Boost yield, margin-friendly, income machine
📊 Tool: Track Your Progress
Want to keep track of what you're earning, how much your portfolio yields, and where to reinvest?
📥 Dividend Tracker Template – $5
Simple, powerful Google Sheet to track your holdings, income, yield-on-cost, reinvestment, and more.
📘 Full System: Go From $0 to $500/Month in Income
If you’re ready to build a scalable dividend income portfolio from scratch, with real structure, strategy, and support. You can start here:
🚀 The Dividend Income Blueprint – $25
My complete guide that shows how I built over $3,000/month in passive income using a three-layer dividend system, reinvestment strategy, and sustainable yield portfolio design.
It includes:
The strategy I use
Portfolio structure breakdown
Real examples + reinvestment tactics
Income planning + risk controls
Bonus: Checklist, glossary, & asset filters
📅 Tier 3: Monthly Dividend Map (6–10%)
This layer smooths the ride. These are monthly-paying stocks, ETFs, and CEFs that deliver predictable income flows throughout the year.
I’m actively building a list of 40–50 tickers to create an income ladder, ensuring I get paid every single month, regardless of market timing.
Examples From My Monthly Map:
O – Monthly-paying blue-chip REIT
MAIN – Monthly BDC with a solid history
PFLT – Floating rate BDC
JEPI – Covered call ETF with low volatility
STAG – Monthly industrial REIT
RYLD – High-yield Russell 2000 ETF
Allocation Target: ~30% of portfolio
Purpose: Smooth monthly income + diversification
Now let’s get into the massive yield amplifiers -
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