Investing $5,000 in SCHD Now Could Generate Serious Passive Income Over 20 Years
The real benefit of dividend investing isn't the income it can produce in a year. It's the income that can be generated over decades.
Overview
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has been and remains one of the most popular dividend exchange-traded funds (ETFs) out there. Its strategy, which targets high-quality companies with lengthy dividend histories and above-average yields, has been one of the most durable and successful dividend ETFs for shareholders.
Currently, the fund pays around 3.3% annually. On an initial $5,000 investment, that would generate roughly $165 in dividends annually. That's solid on its own, but the more impressive numbers come from what happens if you hold on to that investment for decades.
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Source
Originally published at www.fool.com.