Data from YCharts shows that the SCHD dividend ETF has experienced an approximately 8% decline from its recent peak, presenting an attractive entry point for investors seeking income. This fund consists of 100 leading dividend stocks, tracking the Dow Jones U.S. Dividend 100 Index, which focuses on U.S. stocks with high dividend yields. Selected based on dividend consistency and financial strength, the fund’s top 10 holdings account for around 40% of its assets. Noteworthy holdings include Cisco Systems, Blackrock, Bristol Meyers Squibb, Home Depot, Chevron, Verizon, Pfizer, Altria Group, Texas Instrument, and UPS, all of which boast higher dividend yields compared to the S&P 500 and have a history of consecutive annual dividend increases.
Amidst the recent market sell-off, the fund now offers investors a 3.8% dividend yield, potentially increasing over time given its focus on companies with a track record of raising dividends. With a diversified portfolio spanning various sectors, the fund has historically delivered solid total returns, averaging 13.8% annually since its inception in 2011, outperforming the market’s average return of around 10%. This aligns with the long-standing trend of dividend growth stocks outperforming non-dividend payers. The current market situation presents income-focused investors with an appealing opportunity to capitalize on the potential rebound and continued growth of dividend stocks through the Schwab U.S. Dividend Equity ETF.
This dividend ETF presents a compelling opportunity for investors looking to capitalize on potential gains. If you’ve ever felt like you missed out on investing in top-performing stocks, now is the time to pay attention.
Occasionally, our team of expert analysts identifies companies that they believe are poised for significant growth and issues a “Double Down” stock recommendation. If you’re concerned that you may have missed the initial wave of investment opportunities, consider this your second chance to get in before it’s too late. The track record of our past recommendations speaks for itself:
– Nvidia: Investing $1,000 in 2009 when we issued a “Double Down” recommendation would have grown to $349,279*
– Apple: A $1,000 investment in 2008 following our “Double Down” recommendation would now be worth $48,196*
– Netflix: Investing $1,000 after our 2004 “Double Down” recommendation would have yielded $490,243*
Currently, we are alerting investors to three exceptional companies with our “Double Down” alerts, and this could be a rare opportunity that should not be overlooked.
For more information on these three promising stocks, see our latest recommendations. Remember, past performance is not indicative of future results, and investing always carries risks. Stay informed and make educated decisions based on your financial goals and risk tolerance.
*Stock Advisor returns as of December 16, 2024
Matt DiLallo holds positions in Bristol Myers Squibb, Chevron, Home Depot, and Verizon Communications. The Motley Fool has stakes in and endorses Bristol Myers Squibb, Chevron, Cisco Systems, Home Depot, Pfizer, and Texas Instruments. The Motley Fool also recommends United Parcel Service and Verizon Communications. Our firm upholds a strict disclosure policy to ensure transparency and trust with our readers.
