Are you looking for a quality dividend ETF to invest in? If so, you’ve got quite a universe of ETFs to choose from! Among others, you have choices like: The options are many! Thankfully, it’s not that hard to get an above-average amount of income coming into your portfolio with only a modest sum invested in dividend ETFs. In this article, I will explore a that could get you started on your journey to passive income with as little as $500 invested. Vanguard’s Canadian high-yield ETF The ( ) is, as the name implies, an ETF made up of high-yield Canadian stocks.
It has approximately a 3.9% dividend yield, which means that if you invest $500 in it, you get about $20 back in passive income per year. Now, reading the above, you might be thinking It’s true: your income starting with just $500 is going to be pretty minimal.
But the beautiful thing about ETFs and other public equity investments is that you can add to them over time. Unlike private businesses, you don’t have to negotiate a transaction and buy your whole lot right there on the spot. You can buy a little more with each paycheque, and build up your position over time.
So, assuming that you make regular contributions, VDY’s price and dividend never change, and you get your $500 position up to $5,000, then you’re getting $200 per year. At $50,000, $2,000 per year. And so on and so forth.
Now, this is all simplifying a little because prices and dividends change. ETF prices go up and down frequently, and dividen.
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