Schwab U.S. Dividend Equity ETF
SCHD (NYSE)
Schwab U.S. Dividend Equity ETF (SCHD) targets high-quality, dividend-paying U.S. companies, making it an excellent choice for investors seeking steady income and stability. With a commendable dividend yield of 3.80% and a solid 5-year return of 36.60%, this ETF is often recommended in simple portfolios for beginners. Its focus on financially healthy firms ensures consistent payouts, earning it strong analyst ratings and recognition in the investment community.
Pros:
- Focuses on high-quality dividend-paying US companies
- Recommended for steady income and stability
Cons:
- Has struggled since January 2022
- May not perform as well as other ETFs
The Schwab U.S. Dividend Equity ETF (SCHD) is well-suited for income-focused investors who prioritize stability and seek exposure to high-quality dividend-paying U.S. companies. Its attractive dividend yield and solid historical performance make it a compelling option for both novice and experienced investors looking to enhance their portfolios with reliable income-generating assets.