Investing $5,000 in SCHD Now Could Generate Serious Passive Income Over 20 Years

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has been and remains one of the most popular dividend exchange-traded funds (ETFs) out there. Its strategy, which targets high-quality companies with lengthy dividend histories and above-average yields, has been one of the most durable and successful dividend ETFs for shareholders.

Currently, the fund pays around 3.3% annually. On an initial $5,000 investment, that would generate roughly $165 in dividends annually. That's solid on its own, but the more impressive numbers come from what happens if you hold on to that investment for decades.

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