So I was looking at a S&P 500 dividend ETF that claimed a 2.61% dividend. It was NOBL. That would be $10,440 on a $400,000 investment or $870 a month average. I realize that the price fluctuates but if you are only interested in its quarterly dividend that would be $2610. Am I missing something? Sounds like the hard part is getting the 400K but after that..... some income that might be somewhat dependable. Maybe a need to diversify some?
Hi Lee Coffey, thanks for visiting my blog btw. If you invest in S&P 500 ETF you are practically diversifying your investment. SPY ETF holdings are the 500 companies that make up the S&P 500, and that together make up about 80% of the overall U.S. stock market's value. You could buy the SPY as a core portfolio holding to provide exposure to the U.S. stock market. In my opinion you should use dollar cost averaging and you can expect to earn roughly the same return as the S&P 500 with the SPY ETF and over long periods, that has been enough to outperform most managed mutual funds.
I like your starting a blog by the way....
Thanks Lee Coffey, I really appreciate it.