Passive Income & February Plans

Right. So, the plan. The utterly sensible, grown-up plan. It involves passive income. Not yachts, obviously. More like…being able to afford decent coffee without feeling a tiny stab of guilt. My goal is to build up enough passive income to cover the basics. It’s a long shot, I know. Especially considering my track record with, well, everything. But ETFs seem…promising. Less emotionally draining than, say, day trading, where I inevitably panic-sell at the worst possible moment.

Currently, my top pick – the one I’m actually planning to buy more of this February – is the Schwab U.S. Dividend Equity ETF (SCHD +1.53%). It’s not glamorous, I admit. But then, financial security rarely is. It’s more…reliable. Like a sensible pair of shoes. Which is exactly what I need, considering I’ve been running around chasing shiny objects (cryptocurrency, mostly) for far too long.

The strategy, as far as I understand it (and honestly, my grasp of financial jargon is tenuous at best), is simplicity itself. It tracks the Dow Jones U.S. Dividend 100 Index – which basically means it picks 100 companies that pay good dividends. They don’t just look at the yield, though. They check if the company actually has a history of paying dividends, and if those dividends are growing. It’s like dating – you don’t just go for the initial spark, you look for long-term potential.

Over the past year, the ETF has yielded around 3.8%. Which, let’s be honest, doesn’t sound like much. But then you do the math (which I had to get my brother to do, naturally), and it adds up. For every $100 invested, you get about $3.80 in dividends. Compared to the S&P 500’s 1.1%, it’s…significant. It’s the difference between buying a latte and…well, buying a slightly nicer latte. Small victories, right?

And here’s the really interesting bit. The companies in this ETF have been growing their dividends by over 8% a year for the last five years. The S&P 500? Only 5%. It’s like…they’re actually trying to make my life easier. Which, frankly, is a relief. It’s not just about the immediate income, it’s about the potential for growth. A steadily increasing stream of passive income. It sounds almost…sustainable. I’m cautiously optimistic.

Since its inception in 2011, the ETF has delivered an average annualized total return of 12.3%. Which is…good. Really good, actually. It’s enough to make me almost forget about the cryptocurrency I lost. Almost. (Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24.)

So, that’s the plan. More SCHD. More dividends. More…sensible financial decisions. It’s not glamorous, but it’s a start. And honestly, at this point, I’ll take anything that doesn’t involve another late-night crypto binge.

2026-02-01 16:22

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