Got $10,000? Put It in These Dividend ETFs Now

"The formula is to make investments of $4,000, $3,000, and $3,000 in relatively low-risk dividend ETFs. Since we're choosing funds that are already diversified, we can diversify even further with allocations into three different ETFs. A sensible plan that could turn your $10,000 portfolio into an income-generating juggernaut."

"State Street SPDR S&P Dividend ETF focuses on companies that have consistently increased their dividend for at least 20 consecutive years. That's a high bar, and not every dividend-paying S&P 500 member will clear this bar. Just a few examples of stocks on the holdings list are Verizon Communications, Target, Chevron, and PepsiCo. All in all, there are 155 holdings in the SDY ETF."

"You'll end up paying an annual expense ratio of 0.35% with the State Street SPDR S&P Dividend ETF. This means $0.35 of every $100 invested in the SDY ETF will be deducted per year from the share price. It's not exorbitant when you consider what you're getting. The State Street SPDR S&P Dividend ETF's share price has risen 40% over the past five years."

A strategic approach to growing $10,000 involves allocating funds across dividend-paying exchange-traded funds (ETFs) to create a diversified, income-generating portfolio. The State Street SPDR S&P Dividend ETF (SDY) serves as a primary investment vehicle, focusing on S&P 500 companies with at least 20 consecutive years of dividend increases. SDY holds 155 companies across multiple sectors, including Verizon, Target, Chevron, and PepsiCo, providing broad diversification. With a modest 0.35% annual expense ratio, SDY has demonstrated 40% share price growth over five years. This approach combines dividend income with capital appreciation potential, creating a balanced strategy for portfolio growth without unnecessary complexity.

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