How $300 Per Month Can Create $42,000 in Annual Dividend Income
For many investors, building a portfolio that will pay out enough in dividends to cover all of their major expenses in retirement is the ultimate goal. And since many companies that pay dividends seek to increase those payouts over time, you might even get modest pay bumps every year. The best part of having a portfolio of this type is that you might not have to sell shares to generate cash for your own living expenses, so you could wind up with a huge asset you can pass on to your heirs.
Building a solid dividend-focused portfolio that can pay out tens of thousands of dollars each year doesn't have to be complicated. Consistently investing a set amount into a simple ETF every month and reinvesting the dividends during your working years can result in a massive portfolio over time. Indeed, investing just $300 per month could eventually give you a portfolio paying out $42,000 per year in dividends.
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Source Fool.com
