When we talk about a X% SWR rate does that include the dividend pay out? Do we use the dividend yield minus our SWR?
Can't advise you on the allocation question, but for this one:
The X% SWR in the original studies say you can take X% SWR from your initial portfolio balance for Y years with a Z% chance of success, usually with some form of inflation adjustment. The canonical data set indicates X=4%, Y=30, Z=95%, but the inflation adjustment and your portfolio allocation impact that also.
So supposing you had $1M at the moment you retire. If you take $40K from that pile of money this year, and then $40K*(1+CPI%) next year, and so on, the chances are 19 out of 20 that you'd would not run out of money for 30 years.
If that portfolio throws of $30K of dividends and you took those and spent them, they would be included in your SWR amount. So you could remove an additional $10K from the portfolio to get you to the 4%. It would not be "legit" to spend the $30K plus an additional $40K. You could do that, but if you did that would be a 7% WR, which most people don't think would be sustainable over the 30 year period.
Also, that $40K needs to include all of your outflows, including taxes.