Here's Exactly How Much You'd Need to Invest in SCHD to Generate $500 per Month in Passive Income
There are many paths to reach $500 in monthly dividend income through the Schwab U.S. Dividend Equity ETF.
Overview
Many investors are using the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) to collect passive income. For example, if you want to generate $500 a month in passive income from this ETF, you'd need to invest $191,800 at the current share price to hit that goal.
The math works out like this. The ETF has a trailing 12-month yield of 3.13% based on the roughly $1.05 per share it has paid out over the past year. At its recent price of around $33.50, you'd need to own 5,725 shares to reach your desired income level of $1,500 per quarter, since this ETF makes quarterly distributions.
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Originally published at www.fool.com.