"SCHD for Dividend Growth Maybe you've heard about dividend funds that put cash in your account each and every month. To be completely honest, the Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD) isn't one of those funds. The fact is, Schwab's U.S. Dividend Equity ETF pays out its cash distributions to investors once every three months. On the other hand, the fund's yield is quite good, so patient shareholders will be richly rewarded."
"There are 103 stocks in the SCHD ETF's holdings, and this fund tracks the Dow Jones U.S. Dividend 100 Index. Consequently, if you own the Schwab U.S. Dividend Equity ETF, you'll get exposure to stocks covering a wide variety of market sectors. In other words, there's a safety factor with the Schwab U.S. Dividend Equity ETF because it's highly diversified."
A better ETF for passive income can prioritize dividend-growth history, higher yield, or more frequent distributions. SCHD (Schwab U.S. Dividend Equity ETF) pays quarterly distributions rather than monthly and offers a competitive yield that rewards patient shareholders. The fund holds 103 stocks and tracks the Dow Jones U.S. Dividend 100 Index, providing exposure across many market sectors. The ETF includes both dividend payers and dividend growers, which has supported long-term dividend growth for the fund. Broad diversification across recognized large-cap names adds a safety factor for income-focused investors.
Read at 24/7 Wall St.
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