Unlock $10,000 Annual Passive Income with Strategic Schwab ETF Investments

"When your cash hoard grows big enough, you can start planning out your passive income streams. To that end, Schwab's broad variety of exchange traded funds (ETFs) eliminates the need for individual stock picking and can unlock substantial dividend yields. If you choose your ETFs carefully, you could potentially earn $10,000 in passive income per year when your account size is big enough."

"The three Schwab funds I'll tell you about today have an average dividend yield of (3.67% + 3.76% + 2.96%) / 3, or 3.46%. So, if you have $300,000 to invest equally into those three Schwab ETFs, you should receive $300,000 x 3.46% or $10,380 worth of dividends after one year. Sure, the funds will deduct operating expenses from the share price, but Schwab's fees are quite low."

"The first $100,000 of a $300,000 investable cash account could be dedicated to the Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD). This fund has "Dividend" in its name, so you know it will appeal to passive income seekers. A diversified fund with 103 stocks in its holdings list, the Schwab U.S. Dividend Equity ETF provides portfolio exposure to established names across multiple economic sectors."

Accumulated cash enables planning passive income through ETFs that remove the need for individual stock picking and can deliver substantial dividend yields. Three Schwab ETFs have an average dividend yield of 3.46%, meaning $300,000 invested equally across them would generate about $10,380 in dividends annually. Schwab ETFs charge low operating expenses, modestly reducing share price returns. Allocating $100,000 to the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) provides exposure to 103 diversified stocks across sectors. SCHD holds dividend payers such as Chevron, Coca-Cola, Lockheed Martin, and Altria. SCHD's expense ratio is 0.06% and its trailing 12-month distribution yield is 3.67%.

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