The $2,150 mortgage math

A $2,150 monthly mortgage payment equals $25,800 annually. The capital needed to cover it with dividends alone depends entirely on the yield you accept.

Conservative tier: 3.5% to 4%

Treasury bonds and dividend growth funds yield 3.5% to 4%, requiring roughly $697,000 to $737,000 in capital. You get stability but tie up the most money.

Moderate tier: 5% to 7%

REITs like Realty Income, preferred shares, and covered-call funds yield 5% to 7%, requiring about $469,000 to $473,000. This is where most mortgage-replacement plans actually land.

Aggressive tier: 10% to 14%

Business development companies and mortgage REITs yield 10% to 14%, needing just $215,000 to $258,000. But these frequently cut distributions in recessions and erode principal over time.

Realty Income's track record

Realty Income raised its monthly payout from $0.2275 in late 2019 to $0.2715 by September 2026. A dividend growing mid-single digits roughly doubles your income in 12 to 14 years without adding capital.

“Realty Income has raised its payout from $0.2275 per month at the end of 2019 to $0.2715 as of the September 2026 declaration.”

Why cheap yields get expensive

A 12% BDC payout that stays flat or drifts down won't double your income. Over 20 to 30 years, the tier that looks cheapest today often becomes the most expensive.

Build a blended portfolio

A 5.3% blended sleeve requiring $482,243 is more resilient than a pure 4% Treasury book or pure 10% BDC book, because rate cuts and credit cycles don't all hit at once.

Three moves to make now

Price the exact gap using your numbers. Stress-test high-yield options against moderate REITs. Model a blended portfolio rather than betting on a single ticker.