Such characteristics are increasingly valuable as investors rotate into income-generating assets. One of the most popular dividend-focused ETFs is the Schwab U.S. Dividend Equity ETF (NYSE: SCHD ). With an expense ratio of just 0.06% and a strong track record of performance and rising payouts, SCHD is an excellent way to build a diversified portfolio of dividend stocks. Over the past 5 years, SCHD has delivered an annualized return of about 11% and currently yields around 3.5%. That means a $10,000 investment would kick out $350 per year in dividends – not enough to retire on yet, but a great start. If there's any concern regarding this ETF, it's a limited exposure to the technology sector. Tech has been the best-performing sector on Wall Street for years, and while the fund holds some decent tech names, many of the best-performing tech stocks don't offer a dividend that allows them to be included in its holdings. Seasonal patterns tracked via SCHD Yahoo Finance show that July and August have historically posted modest average gains, offering possible entry points for medium-term investors.
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