"No matter where you are in your investment journey, dividends can become the backbone of your income. Dividend stocks are an ideal way to generate money from your investment; they can help cover monthly expenses and provide stability in the form of steady income. However, they may not always outperform the market and could bring worry when the market is down. This is where exchange-traded funds (ETFs) come into play."
"A passive index fund, the Schwab US Dividend Equity ETF ( NYSEARCA:SCHD) tracks the Dow Jones U.S. Dividend 100 index and owns 102 stocks. Known for a high yield, SCHD has a yield of 3.76% and an expense ratio of 0.06%. It offers fair diversification across industries, including industrials, healthcare, and financials. The fund screens for financial stability and dividend sustainability to build a portfolio that focuses on the traditional dividend stocks instead of growth stocks."
Dividend investments can provide steady income and help cover expenses, but individual dividend stocks may underperform or add volatility. Dividend-focused ETFs combine dividend payers across industries to offer diversification, lower individual-stock risk, and passive income suitable for retirement portfolios. The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 index and holds 102 stocks. SCHD yields 3.76% and charges a 0.06% expense ratio. The fund emphasizes financial stability and dividend sustainability, favors traditional dividend stocks over high-growth names, and allocates across energy, consumer staples, healthcare, and financials.
Read at 24/7 Wall St.
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