Want $500 a Month in Passive Income? Start With This Brilliant Dividend ETF.
Here's the path for how the Schwab U.S. Dividend Equity ETF (SCHD) can generate hundreds in dividends every month.
Overview
Generating $500 per month in passive income would be a huge step toward using your portfolio to actually fund your lifestyle. No longer would the focus be exclusively on long-term growth. It could be built for generating the income to pay your bills today.
Of course, there are a number of ways to go about doing that. Targeting something with an 8% to 10% yield might sound tempting, but those are often risky or unstable dividends. The better strategy is to identify an ETF with a larger portfolio of high-quality stocks that still produce sustainable above-average yields.
Details
My personal favorite for this is the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). Since its 2011 inception, it's increased its annual dividend every year. And its 3.2% yield is triple the yield on the S&P 500.
Source
Originally published at www.fool.com.