My practice is to take the dividends. I let the individual companies decide what a sustainable disbursement rate is.
Luckily for me (my mother actually: this is her account) that plus her pension and SS keep her cash hovering around a positive value while the NAV continues to grow. Perhaps once every year or so I sell off a little something but, so far, it is usually less than the NAV increase. It's a happy balance.
Taking the dividends is the lazy man's way of getting cash, and I mean that in a good way. No fuss. It just shows up every three months.
EDIT: I guess I should explain that "Can of Worms." This topic tends to get a lot of (virtual) ink. One of the latest threads is 5 pages: viewtopic.php?f=10&t=118228
No-one really listens to anyone else, and if you try it sometime you will see why. | -- Mignon McLaughlin