N@N

Here's how an ASX investor could use $20,000 of savings to target $2,000 a month of passive income

The article from MSN outlines a strategy for an ASX investor to generate a passive income of $2,000 per month using an initial investment of $20,000. It suggests investing in high-yield dividend stocks, specifically mentioning companies like Fortescue Metals Group, BHP Group, and Woodside Energy, which offer yields around 8% to 10%. The strategy involves reinvesting dividends to compound returns over time. For instance, if the portfolio yields an average of 8%, the initial $20,000 could grow to provide the desired income through dividend reinvestment over several years. The article also discusses the importance of diversification to mitigate risks associated with stock market volatility and emphasizes the long-term commitment required to achieve such income goals, highlighting that while the initial investment is significant, the real growth comes from the compounding effect of reinvested dividends.

Read the Full MSN Article at:
[ https://www.msn.com/en-au/lifestyle/misc/here-s-how-an-asx-investor-could-use-20-000-of-savings-to-target-2-000-a-month-of-passive-income/ar-AA1xTX9f ]