How to Build $4,925 a Month in Tax-Free Dividend Income Inside a Roth IRA

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The IRS never touches this paycheck, but the portfolio behind it mixes a dividend freeze, two payout cuts, and a fund that may hand your own money back. Which six holdings made the cut, and why does a Roth change everything?

A $4,925 monthly paycheck works out to $59,100 a year, and if you stash the right income investments in a Roth IRA, the IRS never takes a cut. With this in mind, here is what that paycheck costs at different yields, plus a six-holding mix built to pay it.

The formula fits on one line: annual income divided by yield equals the money you need invested.

Dividend-growth funds need the most money, but the payout and the principal both tend to grow. REITs and high-dividend stocks cut the bill, and raises come slower. BDCs (business development companies), covered-call funds and junk bonds ask the least upfront. You often pay for that with shrinking principal and dividend cuts. At today's prices and payouts, the mix below yields closer to 8.1%, so the 7.7% planning figure leaves a small buffer for emergencies, etc.

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Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ) owns Nasdaq-100 names and writes call options on them for cash. It has the biggest weight (25%) and pays monthly at roughly 10.7%. The risk: payouts can include return of capital (your own money handed back), and they fall when markets calm down and option premiums shrink. The latest check came in below the prior one.

Anchoring the growth side, the ALPS Sector Dividend Dogs ETF holds about 50 high-yielding stocks, weighted equally across sectors, and yields around 3.4%. Its quarterly checks vary, so budget for uneven payments.

Warehouses, factories, and stores leased long term fill the portfolio of Broadstone Net Lease (NYSE:BNL). Occupancy stands at 100%, and it just raised its dividend again. It yields about 6.7%.

Carlyle Secured Lending (NASDAQ:CGBD) lends to middle-market private companies, and 96% of the portfolio is…

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