Investing $275 Monthly in SCHD Could Build Serious Passive Income Over 20 Years

Investing $275 a month into the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) could build significant passive dividend income over the next two decades. If the leading dividend ETF grows its dividend and share price at 9% compound annual rates, and you reinvest all dividends, it would produce over $7,360 in annual dividend income by 2046.

Here's a look at how compounding could turn a relatively modest monthly investment into a growing stream of dividend income over the next two decades.

Image source: Getty Images.

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