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Capital Required โš ๏ธ Medium Risk

Target: $3,000 / Month

Ticker: SPHD โ€ข Yield: 4.8% โ€ข Growth (5yr): 2.5%

Sector
Dividend Equity ETF
Estimated Capital Needed (Today)
$750,000
to generate $3,000 monthly immediately

๐Ÿ’ฐ Net: approx. $2,538 /mo after tax.

โณ The Waiting Game: Save Money by Holding

Currently, you need $750,000. But if SPHD grows its dividend by 2.5% annually, you can invest less today and hit your goal later.

Wait 1 Y Save $18,293
$731,707
Wait 3 Y Save $53,550
$696,450
Wait 5 Y Save $87,109
$662,891
Wait 10 Y Save $164,101
$585,899

*Assumes constant dividend reinvestment is NOT included, only dividend growth.

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โ˜ƒ๏ธ The Snowball Effect (10-Year DRIP)

Reinvesting all dividends with constant yield:

YearTotal ValueMonthly Income
Year 1$786,000+$3,144/mo
Year 3$863,267+$3,453/mo
Year 5$948,130+$3,793/mo
Year 10$1,198,599+$4,794/mo

Real Life Impact

โณ You just bought 'Time'. The 9-to-5 grind is now optional.

Analysis Breakdown

Introduction

Dreaming of an extra $3000.00 in monthly cash flow? With Invesco S&P 500 High Dividend Low Volatility (SPHD), a capital allocation of roughly $750,000.00 could get you there. Note that this math relies on a 4.80% yield.

About SPHD

Investors in the Dividend Equity ETF sector often watch Invesco S&P 500 High Dividend Low Volatility (SPHD). It is generally viewed as a stable income generator.

Investment Context

From an investment angle, committing $750,000.00 requires conviction in SPHD's future.

Disclaimer: Informational only. Not financial advice. Yields vary. Past performance does not guarantee future results.

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