VZ - SCHD: A Must-Have In Every Dividend Portfolio
2024-05-04 03:39:35 ET
Summary
- Schwab U.S. Dividend Equity ETF is a popular choice for income-oriented investors, diversification and a defensive approach.
- SCHD offers exposure to dividend-paying firms with healthy balance sheets, offering investors resilience in turbulent times.
- Tracking mature companies and paying a 3.46% dividend yield, SCHD's total returns are lower, compared to cap-weighted ETFs, which benefit from long-term compounding.
- With interest rates remaining high, alternatives to dividend investing are viable, partially explaining poor SCHD's performance.
- I use the ETF for diversification away from mega cap stocks while collecting attractive, double-digit growing income.
Are you a risk-conscious investor, looking to diversify your dividend-oriented portfolio?
The odds are you are already familiar with Schwab U.S. Dividend Equity ETF ( SCHD )....
SCHD: A Must-Have In Every Dividend Portfolio