With so many stocks and exchange-traded funds (ETFs) trading at triple-digit prices today, some new investors may think there are “gates” or prices of admission for investing — and that they need to have a certain amount of money to get in the game.
Fortunately, the reality is different
Let’s assume you have $100 with which to get started. If you put that $100 to work today, you add nothing else to it, and the market returns 5% annually, that $100 will turn into $430 over 30 years. Extending that example: If you put $100 to work today and add $100 to it each month, it’s possible — perhaps likely — that your modest stake could be worth $100,000 or more in 30 years.
That quest can be assisted by leveraging compounding, making blue chip dividend stocks worth a look if you’re a buy-and-hold investor just getting started. With that in mind, the Invesco High Yield Equity Dividend Achievers ETF (NASDAQ: PEY) and the Schwab International Dividend Equity ETF (NYSEMKT: SCHY) are worth examining. Even with just $100, you can get involved with these ETFs and have change left over.