Want $10,000 in Annual Passive Income? This 1 ETF Could Get You There

Core Insights - The article emphasizes the concept of passive income, particularly through dividends as a straightforward method for investors to earn money without active involvement [1][2]. Group 1: Dividend ETFs - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as a top dividend ETF, established in October 2011, known for its focus on high-quality companies [4]. - Companies included in SCHD must have a minimum of 10 consecutive years of dividend payouts, strong cash flow, and a healthy balance sheet, which helps filter out unsustainable dividend payers [5][8]. - SCHD has averaged a 3.35% dividend yield over the past five years, requiring an investment of approximately $298,508 to generate $10,000 in annual passive income at this yield [6][8]. Group 2: Investment Strategy - The article suggests that while few individuals have $300,000 readily available for investment, achieving the target income is feasible through time, consistency, and the power of compound earnings [7]. - Over the past decade, SCHD has averaged 11.2% annual total returns, indicating that with a monthly investment of $400, one could reach the $300,000 mark in 20 years, or in 15 years with $750 monthly contributions [9].