This is How Much SCHD You Need to Retire (And How Soon)

In this video, I’m going to show you how much you need in order to retire off SCHD and also how soon you'll be able to retire. SCHD is currently one of the most popular dividend-growth ETFs among investors, for several really good reasons. It currently offers the highest dividend yield among many of the most popular dividend-growth ETFs that exist. And if you happen to be interested, I recently did a video where I compared the most popular dividend ETFs to each other, looking at a bunch of different metrics, including dividend growth, diversification, overall returns, and so on:

   • Which Dividend Growth ETF is Best? To...  

But in this video, we’re going to see how quickly someone would be able to retire from their job and live solely off the dividend distributions of SCHD. For this video, we’re going to make a couple of assumptions. First, we’re going to assume that SCHD is the only investment you have in your portfolio. Now, because this is a diversified ETF, if someone wanted to only invest in SCHD, then I really wouldn’t see much of an issue with that. I always advocate for having multiple investments in your portfolio, but SCHD currently holds 104 different dividend-paying stocks. So if SCHD were the only thing someone wanted to hold, then that would be sufficient, in my opinion. Second, we’re going to assume that you’ll want to make $100,000 a year in dividends. I know that sounds like a lot of money, and if you want to aim to live off less, then that’s great. But as we’ll see, depending on the number of years in the future, a hundred grand might not be as well off as you’d likely be now.

  / dividendbull  

#dividendinvesting #dividends #dividendstocks