Not if you pick correctly.

Are you asking how dividend stocks work? What specifically would you like to know?

Yes and no, dividends are great to live off of and invest with. They would still have extra money from the amount they listed to invest and grow with if they pleased. If they live cheaply for the next 10 years of their life they could pay off a home and a car from the dividend. The remainder of their life could just be passive dividend money they mostly invest with.

Over the course of their life time (if they are somewhat young) It is a much better investment than most, however I do agree they should diversify. A mix between stocks for dividend, some stocks for growth, a small business with little to no maintenance / rental property, high interest hedge fund, alternative investments (something collectable that goes up in value over time, comics, lego's ect.), personal checking /savings / cash and finally a small amount of crypto (about 1% of total wealth) would be ideal IMO.

I am also big on generational wealth and building a better tomorrow for your descendants so that hopefully they can live a better life and in turn pass that wealth and tutelage on to their kids, so on and so forth.

Suggest you buy dividend stocks, You could have continual income for the remainder of you life with the wealth you have now. Depending on the stocks you choose you could invest around $400,000 and have about $30,000 passive income each year. If you would like a list let me know and I will post.