SCHD Passive Income Potential Over 20 Years Revealed

The Schwab U.S. Dividend Equity ETF (SCHD) offers investors a low-stress way to generate passive income for the next two decades.

With its low expense ratio of 0.06% and trailing yield of 3.13%, SCHD is one of the market's most popular dividend-focused exchange-traded funds.

Top holdings include Abbott Laboratories, Amgen, Merck, and Coca-Cola, and since its launch on October 20, 2011, it has delivered a total return of 562%.

Past performance doesn't guarantee future gains, but investing $100 a month into SCHD over the next 20 years could still generate significant returns. If SCHD matches its historical growth rate of 10% every year for the next 20 years, the $24,000 invested would grow to nearly $76,000 with reinvested dividends at 3.5%. This represents a total return of around 215%.