How I Would Invest $250,000 to Generate $2,000 a Month Without Risking My Capital

In an ideal world, one of the things we would all love to say we have accomplished is to create passive income that literally requires us to do nothing but sit around and collect checks. It’s not something many people can say happens for them, but it’s something a lot of people wish for.

Key Points

• This Redditor is hoping to take a $250,000 investment and create passive income monthly.

• Their goal is to use this money to live off of, but they might be able to make some extra money as well.

• People love to argue the validity of a dividend-first investment strategy, but it’s all about what is best for you.

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Among the people who do wish for this kind of passive income is one Redditor posting in r/dividends. This individual’s hope is that they can take a $250,000 investment and set themselves up to earn around $2,000 per month in stable, ongoing dividend income.

Earning Divided Income

If you spend any time poking around the r/dividend subreddit, you know that there is a real movement towards passive income. Whether this money is something these individuals can earn at an age while they are still saving or investing, or closer to retirement when they shift out of growth stocks, it really doesn’t matter.

The hope, especially in the case of this Redditor, is to take some of the money they have put aside for savings, retirement, or a rainy day, and allow it to generate more income than it would out of something like a high-yield savings account.

Of course, the real question is whether or not it’s actually possible to generate substantial income out of dividends. The answer is yes, of course it is, the only question is how much, and this is really dependent on what kind of investment you make.

What Should This Redditor Do?

In an ideal situation, this Redditor is hoping to generate around 10% returns, or a 10% yield in dividend speak, and to be fair, it shouldn’t be all that difficult. The challenge is just knowing which dividends to pick in order not just to create this level of income, but also knowing exactly where to put the money.

As one might expect, there are a number of different recommendations for where this money can be invested, but there is some general consensus as well.

Among the top choices would be to purchase QQQI, which is a NASDAQ-100 High Income ETF.  Currently, as of July 2025, it’s providing a $0.63 dividend for every share owned, and this number has remained relatively consistent over the last 18 months.

The same goes for SPYI, another hugely popular investment in r/dividends, which is currently offering a dividend yield of around 12%, with a payout of $0.51, which is also a number that has been highly consistent for the last 12 months.

There are other potential recommendations like JPEQ, VYMI, and even MSTY, but the latter is highly volatile, and since the Redditor doesn’t want to be down 50% in 2026, it’s best to avoid this option.

Going Right Down the Middle

Currently, a 50% investment in SPY would yield around 2,488 shares based on the August 1 close price. This would be equivalent to around $1,268 per month in dividend returns. If you took the other 50% and invested it into QQQI, you would end up with 2,414 shares based on the August 1 close price of $51.78

Based on the $0.63 dividend right now, you would then see a passive income return of approximately $1,520 per month. In total,  this Redditor would have roughly $2,788 in passive income coming in every month. This is $788 above their desired amount, so not only would they hit their goal, but they would even have some additional play money that could be used for play spending or potentially even reinvesting into future shares of SPYI and QQQI.

One other potential option is to take the $788 amount and put it away to create an emergency fund. We don’t know much about the Redditor’s personal financial situation beyond their $250,000 investment amount, so this might be something to seriously consider.

Of course, if the Redditor wants to create a strong financial plan that can last them for years, speaking with a financial advisor is highly recommended. This person will help outline other options that also might be able to contribute passive income, like municipal bonds that are lower risk than dividend ETFs.

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