Here's How Much You'd Need to Invest in SCHD to Earn $1,000 per Month in Passive Income
Nothing beats making money while you sleep.
Overview
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a popular exchanged-traded fund (ETF) among dividend investors. It tracks the Dow Jones U.S. Dividend 100 Index, a diverse basket of stocks with track records of paying and increasing their dividends. Additionally, the ETF yields about 3.3%, well above the 1% you'll get from your typical S&P 500 index fund.
To invest in SCHD and earn $1,000 in passive income each month, you'll need 11,429 shares. That works out to an investment of $377,157, based on a share price of $33 and a trailing-12-month dividend of $1.05 per share. Technically, SCHD pays quarterly dividends, so you'd receive $3,000 every three months.
Details
Don't let that number intimidate you. Here are two important reasons why it's more doable than it looks.
Source
Originally published at www.fool.com.