How Much to Invest in SCHD for $1,000 Monthly Passive Income
This article from The Motley Fool explains how much an investor would need to put into the Schwab U.S. Dividend Equity ETF (SCHD) to generate $1,000 per month in passive income. Based on a share price of $33 and a trailing dividend of $1.05 per share, an investment of $377,157 (11,429 shares) is required. SCHD yields about 3.3%, well above the S&P 500 average. The article emphasizes that this is a long-term goal achievable through dividend reinvestment and compounding. It notes that once an investor holds 126 shares ($4,158), dividends alone can buy an additional share each quarter. The ETF has raised its dividend by over 522% since 2011, driven by underlying holdings like Abbott Laboratories, Home Depot, Coca-Cola, and Chevron. The piece encourages patience and consistent saving to reach the $1,000 monthly income target over time.
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