Latest news with #DividendEquity
Yahoo
3 days ago
- Business
- Yahoo
2 Dividend ETFs to Buy With $1,000 and Hold Forever
Key Points The Schwab U.S. Dividend Equity ETF provides exposure to high-quality, dividend-paying U.S. companies. The Vanguard Dividend Appreciation ETF is a popular choice for exposure to companies with a history of increasing their dividends in any economy. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Dividends can be a great way to boost your overall portfolio returns and generate capital to save, reinvest, or otherwise put to work as you desire. You can choose shares of individual income stocks or use dividend exchange-traded funds (ETFs) that provide access to an entire basket of dividend stocks. If you're considering dividend ETFs for your portfolio right now and have $1,000 to put to work, here are two options to consider. 1. Schwab U.S. Dividend Equity ETF The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) tracks the performance of the Dow Jones U.S. Dividend 100 index, which tracks the performance of 100 high-yield U.S. dividend stocks. As such, the ETF typically invests in about 100 stocks across various sectors like energy, consumer staples, healthcare, technology, and industrials. Some of the top holdings of this fund include Chevron, ConocoPhillips, PepsiCo, Amgen, Cisco, Merck, and AbbVie. It also has positions in Target, General Mills, Paychex, and Lockheed Martin. The Schwab U.S. Dividend Equity ETF is built around companies that have paid dividends for at least 10 consecutive years and possess the financial strength to continue doing so. That underlying emphasis on quality and strong fundamentals helps create a more resilient and potentially stable portfolio that has paid off big for investors through the years. The ETF contained about $69 billion in total assets at the time of this writing, with an expense ratio of 0.06%. Considering that the average expense ratio for ETFs is in the ballpark of 0.1%, an expense ratio of 0.06% falls nicely below this average. It's worth noting that the Schwab U.S. Dividend Equity ETF is passively managed since it aims to replicate the performance of its chosen index rather than having a manager actively selecting and trading stocks. In general, passively managed ETFs tend to have lower expense ratios compared to actively managed funds because they don't require the same level of research and trading activity. The ETF also offers a yield of about 3.85%, notably higher than the average S&P 500 stock (1.3%). With a total 10-year return including dividends of about 200%, and its payout spiking by 160% in that time frame, the Schwab U.S. Dividend Equity ETF looks like a no-brainer buy for income-seeking investors who want to put cash into a basket of high-quality companies and hold it forever. 2. Vanguard Dividend Appreciation ETF The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) tracks the performance of the S&P U.S. Dividend Growers index, which replicates the performance of large U.S. companies that have consistently increased their dividends for at least 10 consecutive years. The top industry weightings in the Vanguard Dividend Appreciation ETF include technology, financial services, healthcare, consumer defensive, and industrials. The fund had total net assets of $109.6 billion at the time of this writing and contains 337 stocks with a median market cap of $226 billion. Most of the stocks in the ETF are large-cap companies (78% to be exact), while only about 2.7% are small caps. Some of the major names that represent the most significant holdings in the ETF include Microsoft, Apple, Eli Lilly, and Visa. Its current yield is relatively low compared to some other dividend ETFs (around 1.65%) because it prioritizes dividend growth over initial high payouts or the highest yields. Many of the underlying companies are growth-focused stocks that offer the potential for consistent capital appreciation alongside dividend income. Its current expense ratio of 0.05% is on the low end, making it accessible to a much wider group of investors. The Vanguard Dividend Appreciation ETF has delivered a total return of about 240% over the trailing 10 years, while its dividend has increased by about 97%. For investors seeking long-term, reliable income through exposure to high-quality, large-cap U.S. companies with a demonstrated track record of increasing their dividends, this ETF could warrant a long-term portfolio position. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Rachel Warren has positions in AbbVie and Apple. The Motley Fool has positions in and recommends AbbVie, Amgen, Apple, Chevron, Cisco Systems, Microsoft, Target, Vanguard Dividend Appreciation ETF, and Visa. The Motley Fool recommends Lockheed Martin and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Dividend ETFs to Buy With $1,000 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
2 Dividend ETFs to Buy With $1,000 and Hold Forever
Key Points The Schwab U.S. Dividend Equity ETF provides exposure to high-quality, dividend-paying U.S. companies. The Vanguard Dividend Appreciation ETF is a popular choice for exposure to companies with a history of increasing their dividends in any economy. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Dividends can be a great way to boost your overall portfolio returns and generate capital to save, reinvest, or otherwise put to work as you desire. You can choose shares of individual income stocks or use dividend exchange-traded funds (ETFs) that provide access to an entire basket of dividend stocks. If you're considering dividend ETFs for your portfolio right now and have $1,000 to put to work, here are two options to consider. 1. Schwab U.S. Dividend Equity ETF The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) tracks the performance of the Dow Jones U.S. Dividend 100 index, which tracks the performance of 100 high-yield U.S. dividend stocks. As such, the ETF typically invests in about 100 stocks across various sectors like energy, consumer staples, healthcare, technology, and industrials. Some of the top holdings of this fund include Chevron, ConocoPhillips, PepsiCo, Amgen, Cisco, Merck, and AbbVie. It also has positions in Target, General Mills, Paychex, and Lockheed Martin. The Schwab U.S. Dividend Equity ETF is built around companies that have paid dividends for at least 10 consecutive years and possess the financial strength to continue doing so. That underlying emphasis on quality and strong fundamentals helps create a more resilient and potentially stable portfolio that has paid off big for investors through the years. The ETF contained about $69 billion in total assets at the time of this writing, with an expense ratio of 0.06%. Considering that the average expense ratio for ETFs is in the ballpark of 0.1%, an expense ratio of 0.06% falls nicely below this average. It's worth noting that the Schwab U.S. Dividend Equity ETF is passively managed since it aims to replicate the performance of its chosen index rather than having a manager actively selecting and trading stocks. In general, passively managed ETFs tend to have lower expense ratios compared to actively managed funds because they don't require the same level of research and trading activity. The ETF also offers a yield of about 3.85%, notably higher than the average S&P 500 stock (1.3%). With a total 10-year return including dividends of about 200%, and its payout spiking by 160% in that time frame, the Schwab U.S. Dividend Equity ETF looks like a no-brainer buy for income-seeking investors who want to put cash into a basket of high-quality companies and hold it forever. 2. Vanguard Dividend Appreciation ETF The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) tracks the performance of the S&P U.S. Dividend Growers index, which replicates the performance of large U.S. companies that have consistently increased their dividends for at least 10 consecutive years. The top industry weightings in the Vanguard Dividend Appreciation ETF include technology, financial services, healthcare, consumer defensive, and industrials. The fund had total net assets of $109.6 billion at the time of this writing and contains 337 stocks with a median market cap of $226 billion. Most of the stocks in the ETF are large-cap companies (78% to be exact), while only about 2.7% are small caps. Some of the major names that represent the most significant holdings in the ETF include Microsoft, Apple, Eli Lilly, and Visa. Its current yield is relatively low compared to some other dividend ETFs (around 1.65%) because it prioritizes dividend growth over initial high payouts or the highest yields. Many of the underlying companies are growth-focused stocks that offer the potential for consistent capital appreciation alongside dividend income. Its current expense ratio of 0.05% is on the low end, making it accessible to a much wider group of investors. The Vanguard Dividend Appreciation ETF has delivered a total return of about 240% over the trailing 10 years, while its dividend has increased by about 97%. For investors seeking long-term, reliable income through exposure to high-quality, large-cap U.S. companies with a demonstrated track record of increasing their dividends, this ETF could warrant a long-term portfolio position. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
17-07-2025
- Business
- Yahoo
3 Reasons the Schwab U.S. Dividend Equity ETF Is an Attractive Investment for Retirees
Key Points The Schwab U.S. Dividend Equity ETF is highly diversified, so retirees can sleep well at night while holding it. Its 3.75% dividend yield is tough to beat without investing in arguably riskier alternatives. The ETF's dividend continues to increase over time, protecting retirees from inflation. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Your financial plans change in retirement, when those paychecks stop and you begin depending on your hard-earned retirement savings to pay your living expenses. Some people slowly withdraw their savings, often selling their investments to generate that income. That's fine, but I prefer companies that pay dividends. They reward shareholders for owning their stock, allowing them to realize dividend income without having to sell their shares. Keeping your money invested means it continues to compound. However, retirees must be cautious about what they invest in, as they likely don't have the time or means to rebuild their savings if something goes wrong. Retirees should consider investing in the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). I'll outline three reasons below. 1. It provides simple, straightforward diversification The Schwab U.S. Dividend Equity ETF is an exchange-traded fund, a bucket of individual stocks that trade under a single ticker symbol. Some ETFs are constructed based on a specific theme or investment strategy, while others replicate stock market indexes. The Schwab U.S. Dividend Equity ETF follows the Dow Jones U.S. Dividend 100™ Index. It represents 103 individual holdings. So, when you invest in the Schwab U.S. Dividend Equity ETF, you're actually investing in a tiny piece of dozens of individual companies. The ETF covers various stock market sectors, including: Market Sector Percentage of Schwab U.S. Dividend Equity ETF Energy 21.08% Consumer Staples 19.06% Health Care 15.68% Industrials 12.45% Financials 8.36% Information Technology 7.87% Consumer Discretionary 7.86% Communication Services 4.8% Materials 2.8% Utilities 0.04% Data source: Schwab Asset Management. Chart by author. The 10 largest individual holdings in the ETF are: Company Percentage of Schwab U.S. Dividend Equity ETF 1. Texas Instruments 4.37% 2. Chevron 4.26% 3. ConocoPhillips 4.21% 4. Merck & Co 4.07% 5. Cisco Systems 4.05% 6. Amgen 3.97% 7. AbbVie 3.95% 8. PepsiCo 3.92% 9. Bristol Myers Squibb 3.84% 10. Home Depot 3.80% Data source: Schwab Asset Management. Chart by author. As you can see, investors get a wide range of companies in various industries, so there isn't one straw that can break the metaphorical camel's back. Additionally, the ETF has significantly lower technology exposure than the broader market (S&P 500). This can be ideal for retirees, as technology stocks tend to be more volatile than other market sectors. These are well-established companies with a broad track record of paying and raising their dividends. Retirees generally want to avoid taking much risk, and this ETF checks that box nicely. 2. It provides solid dividend income immediately Retirees have many options for dividend and investment income, but it's hard to beat the Schwab U.S. Dividend Equity ETF's combination of dividend yield and safety. The ETF's dividend yield is currently 3.75%, well beyond what the broader stock market offers. Are there stocks with higher yields? Yes! But often, those higher yields come with more risk. The yield is simply a reflection of the share price versus the dividend amount. Typically, a dividend yield is high because investors, through the stock's price action, are commanding a higher return due to some factor, often a lack of growth or troubles in the underlying company. Homing in on the highest yields you can find frequently backfires, causing significant losses when the company cuts its dividend or continues to struggle. The ETF's diversity mitigates that risk, and the yield is still almost 4%. 3. Your dividend income will likely grow faster than inflation Inflation is your greatest enemy in retirement. It steadily erodes your money's purchasing power. The best way to combat it is to grow your money faster than the inflation rate, which historically averages a low single-digit percentage annually. The Schwab U.S. Dividend Equity ETF checks this box, too. The ETF's dividend has grown by approximately 541% since late 2011. These dividends don't come from thin air. The companies the ETF holds are growing their earnings over time, enabling them to raise their dividends. That's the beauty of investing in quality, blue-chip dividend stocks. Fortunately, the Schwab U.S. Dividend Equity ETF makes it easy. Any retiree looking for dividend income should take a close look at the ETF for their portfolio. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Amgen, Bristol Myers Squibb, Chevron, Cisco Systems, Home Depot, Merck, and Texas Instruments. The Motley Fool has a disclosure policy. 3 Reasons the Schwab U.S. Dividend Equity ETF Is an Attractive Investment for Retirees was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
2 High-Yield Dividend ETFs to Buy With $100 and Hold Forever
The SPDR Portfolio S&P 500 High Dividend ETF is focused on large, high-yield companies. The Schwab US Dividend Equity ETF is focused on high-quality dividend growth stocks with high yields. Either one of these ETFs is a good choice, but together they make an attractive pairing. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › There's no one right approach to investing that everyone should follow. That's true even when you home in on a specific style, like dividend investing. That's why some investors will like the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD), and others will appreciate the Schwab US Dividend Equity ETF (NYSEMKT: SCHD). Most investors, however, should probably consider buying both, which you can easily do with as little as $100. From a big-picture perspective, the SPDR Portfolio S&P 500 High Dividend ETF and Schwab US Dividend Equity ETF just track indexes. For the SPDR Portfolio S&P 500 High Dividend ETF, the index is the S&P 500 High Dividend Index. The Schwab US Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index. From an investment perspective, the index is interchangeable with the exchange-traded fund (ETF) in both of these situations. That said, both of these ETFs have very different goals. The SPDR Portfolio S&P 500 High Dividend ETF essentially takes all the stocks in the S&P 500 index (SNPINDEX: ^GSPC) and lines them up by dividend yield. The 80 stocks with the highest yields are put into the index and the ETF using an equal weighting methodology. Equal weighting allows each stock to have the same effect on performance as every other. The clear goal here is to generate as high a yield as possible, while sticking with the large and economically important companies included in the S&P 500 index. It trades for a little under $50 a share. The Schwab US Dividend Equity ETF is far more complex. It only considers companies that have increased their dividends for 10 consecutive years or longer, excluding real estate investment trusts. For each company that passes that screen, a composite score is created. The composite score looks at cash flow to total debt, return on equity, dividend yield, and a company's five-year dividend growth rate. The 100 companies with the highest scores make it into the index and ETF. A market cap weighting approach is used, which means that the largest companies will have the biggest effect on performance. The overarching goal is to find financially strong dividend growers with attractive yields. It trades for a little over $25 per share. The SPDR Portfolio S&P 500 High Dividend ETF has a roughly 4.5% yield. The Schwab US Dividend Equity ETF's yield is around 4%. Both are fairly attractive yields, given that the S&P 500 index is only yielding around 1.3% today. So either one of these high-yield ETFs could be a good fit for your income portfolio. However, there's an important nuance that suggests that buying both may be the better choice. The SPDR Portfolio S&P 500 High Dividend ETF is selecting just from the S&P 500 index, which severely limits its investing universe. Since certain sectors tend to be more focused on dividends than others, like real estate, utilities, and finance, the ETF will generally have a heavy weighting in those sectors. It will also tend to pick up out-of-favor companies that are in a turnaround situation. The Schwab US Dividend Equity ETF's approach allows it to pick from a broader universe, and it is clearly focused on company quality and business growth in addition to dividends and yield. It will generally be buying companies outside of the groups in which the SPDR Portfolio S&P 500 High Dividend ETF is focused. While both investment approaches have merit on their own, putting them together in one portfolio will allow you to have exposure to a broader range of dividend stocks. That increased diversification will likely be a net benefit to your income portfolio. Indeed, every investment approach eventually goes in and out of favor over time, so having exposure to two dividend tactics should help to even your overall performance out over time. If you're only looking to buy one dividend ETF, the Schwab US Dividend Equity ETF is probably the best option. After all, it is looking at the types of things that a dividend investor would likely be considering, too. However, pairing it with the SPDR Portfolio S&P 500 High Dividend ETF's higher-yielding and higher-risk approach may be a better solution for those who are willing to take on a little more risk. The best part is that you can buy a share of each with $100 and still have some cash left over! Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2 High-Yield Dividend ETFs to Buy With $100 and Hold Forever was originally published by The Motley Fool
