I built a dividend portfolio over 3 years, and currently sitting at about 95k mostly dividend aristocrats, reits, some utilities but overall yield is around 3.2%, which gives me roughly 250 bucks monthly… It's stable and growing but the income feels really slow for the capital committed.
I started researching option income strategies and the basic concept is just selling time decay instead of waiting for quarterly dividend payments so I spent 5 weeks paper trading before moving 20k from dividends to systematic credit spreads
Results so far are pretty different, that 20k was generating about 50 bucks monthly in dividends but now it's generating 350 to 550 monthly selling weekly options, depending on the market conditions and how many trades hit targets, a massive income increase but obviously way more work and risk.
What's interesting though is monthly consistency as dividends come quarterly but option premium comes weekly, sometimes daily so it feels more like actual income stream instead of waiting 3 months between payments, the psychological difference is bigger than I expected as well
For people who shifted from dividend income to premium income, what percentage feels right? I am thinking maybe 30% in options max, keeping 70% in stable dividends but I'm curious what allocation others landed on after testing both approaches.