"Dividend payouts are great, but investors should take a safety-first approach. This means you don't want to put all of your eggs in one basket; in other words, stock diversification is crucially important. As it turns out, the Schwab U.S. Dividend Equity ETF provides fairly wide diversification as it tracks the Dow Jones U.S. Dividend 100 Index and includes 103 stocks. You'll find plenty of established blue-chip names in the SCHD ETF's holdings list, such as Home Depot , Chevron , Coca-Cola and Lockheed Martin ."
"In the universe of ETFs, you might sometimes find high expense ratios. These are the annualized operating expenses that are automatically deducted from the share price. With some funds, expense ratios can run as high as 0.5%, 0.75% or even more than that. The good news is that the Schwab U.S. Dividend Equity ETF only imposes an annual expense ratio of 0.06% of the share price."
The Schwab U.S. Dividend Equity ETF (SCHD) targets passive income through dividends and emphasizes dividend raises that can expand income over time. SCHD tracks the Dow Jones U.S. Dividend 100 Index and holds 103 stocks, providing broad large-cap diversification. Holdings include established blue-chip companies such as Home Depot, Chevron, Coca-Cola and Lockheed Martin. The fund favors steady, safety-first returns rather than rapid, high-risk gains, with a six-month share-price increase of about 6%–7%. Expense efficiency is a notable advantage, as SCHD's annual expense ratio is only 0.06%, reducing long-term fee drag. Investors should assess diversification and dividend variability before investing.
Read at 24/7 Wall St.
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