How to build a portfolio, which delivers income

First of all, I'm not a financial advisor. It's all my own experience, process, and thoughts. So let's dive into it.

I personally want to build a portfolio that gives me a monthly income without disturbing my contributed capital. It can be achieved by investing mostly in divided-paying companies or ETFs. So my plan is to create a strategy and follow it strictly without any compromise.

The Strategy is to create lists of buckets with numbers.

bucket no 1 - very high yield stock & ETFs (50%)

bucket no 2 - high yield stock & ETFs (20%)

bucket no 3 - normal yield stock & ETFs (10%)

bucket no 4 - low yield stock & ETFs (5%)

bucket no 5 - growth Stock & ETFs (5%)

bucket no 6 - a high-risk or a penny or ready-to-lose money stock & ETFs (5%)

bucket no 7 - Cash (5%)

 Every 100 dollars should go on this basis to investment. The dividends from all the first 4 buckets need to be collected and put in bucket 5 with the 5% contribution. 

This is the step No. 1 to be done. 

Step two will be like, to create the list of stocks & ETFs for each bucket. There should be no limit to the list in each bucket, but keeping it simple and less will help us to track the performance. Keep 7 ETFs and 2 Stocks on each bucket, for a starting purpose. Can add more if needed in the future.

The Stocks or ETFs which are paying more than 15% are very high yields, that will come with very high risk as well. So if you don't want very high risk quit this bucket and segregate that 50% to the next 4 buckets. There are a lot of ETFs nowadays ready to distribute 30% to 100% dividends per annum. Choosing one of those is purely your own decision. 

Bucket 2 - High yields are like more than 10% to 20% dividend yield. Even a lot of investors are against this type of stock or ETFs. Chasing yield will erode your capital is their arguments. 

Bucket 3 - Normal yields are ones with 5% to 10% dividend per annum. 

Bucket 4 - Low yield is the leftovers with less than 5%

Bucket 5 - Blue chip companies and ETFs consist of growth-oriented companies 

Bucket 6 - Again if you don't want to risk the money, skip this bucket. Otherwise having a small amount will not be bothered you much, but the luck and growth will be limitless. 

Bucket 7 - Cash This will act as an emergency fund. Like if any of our stock or ETF gets in trouble and tanked then this money needs to go there to do DCA.

What I'm doing right now is following this strategy with all 7 buckets until the dividends reach my active income. Then I become financially free and can able to decide whether I need to work full-time or part-time or to retire and relax.