Here's How Investing $450 Per Month Could Generate More Than $30,000 in Annual Dividends
The Schwab U.S. Dividend Equity ETF is a solid option for investors who want a quality investment that can generate lots of dividend income.
Overview
Dividend stocks often pay 5% or less. These days, with the S&P 500 climbing to record highs, the average stock in the index yields just 1.1%. Unless you're already rich, that's not going to generate much dividend income for you.
Instead, a better strategy is to invest in a top exchange-traded fund (ETF), such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), and have it grow by reinvesting dividends. Then, as you've amassed a significant balance, you can stop reinvesting the dividend and simply collect it.
Details
Here's a closer look at how investing $450 per month in the ETF could enable you to collect over $30,000 in annual dividend income in the future.
Source
Originally published at www.fool.com.