It Takes About $32,000 in This Dividend ETF to Collect $1,000 a Year
The payout has grown every year since 2012 -- but the quarterly payments are uneven, and the growth has slowed.
Overview
An extra $1,000 a year in dividend income is a nice round goal, and getting there doesn't require a complicated strategy. One of the largest dividend funds on the market can do the job by itself.
At today's prices, it takes an investment of about $32,000.
Details
The fund is the Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD), which manages about $110 billion in assets. Not only does it hold about 100 dividend-paying stocks, but it also costs almost nothing to own, with an expense ratio of 0.06% (about $6 a year on a $10,000 investment). Shares trade around $34 as of this writing.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.