This Simple Dividend ETF Could Turn $500 a Year Into $10,000
You don't have to start with a huge sum of money; you just have to keep saving hard month in and month out. That's really the key to long-term investment success. A good example of this comes from some simple math around Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), starting with just a $500 investment. But it is a decade of commitment that turns that modest investment into a $10,000 cash hoard.Before getting into the math, it is important to understand what Schwab U.S. Dividend Equity ETF is all about. Dividend income is the quick answer, but how the exchange-traded fund (ETF) gets there is extremely important. The starting point is looking only at companies that have increased their dividends for a decade (eliminating real estate investment trusts, or REITs, which are designed to generate income and would likely sway the fund too heavily toward this asset class).Image source: Getty Images.Continue reading
You don't have to start with a huge sum of money; you just have to keep saving hard month in and month out. That's really the key to long-term investment success. A good example of this comes from some simple math around Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), starting with just a $500 investment. But it is a decade of commitment that turns that modest investment into a $10,000 cash hoard.
Before getting into the math, it is important to understand what Schwab U.S. Dividend Equity ETF is all about. Dividend income is the quick answer, but how the exchange-traded fund (ETF) gets there is extremely important. The starting point is looking only at companies that have increased their dividends for a decade (eliminating real estate investment trusts, or REITs, which are designed to generate income and would likely sway the fund too heavily toward this asset class).
Image source: Getty Images.
