Here's How Investing $450 Per Month Could Generate More Than $30,000 in Annual Dividends
Key takeaways
- These days, with the S&P 500 climbing to record highs, the average stock in the index yields just 1.1%.
- Instead, a better strategy is to invest in a top exchange-traded fund (ETF), such as the Schwab U.S.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
NVDA ^GSPC Dividend stocks often pay 5% or less. These days, with the S&P 500 climbing to record highs, the average stock in the index yields just 1.1%. Unless you're already rich, that's not going to generate much dividend income for you.
Instead, a better strategy is to invest in a top exchange-traded fund (ETF), such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), and have it grow by reinvesting dividends. Then, as you've amassed a significant balance, you can stop reinvesting the dividend and simply collect it.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »