Dividends4Life: Growing Dividend Stocks the Easy Way

Growing Dividend Stocks the Easy Way

Posted by D4L | Thursday, November 17, 2011 | | 0 comments »

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect strong dividend-paying stocks to rise in value over time while kicking out income to investors, the brand-new Schwab U.S. Dividend Equity ETF (NYSE: SCHD ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously. ETFs often sport lower expense ratios than their mutual fund cousins.

The Schwab ETF's expense ratio -- its annual fee -- is a very low 0.17%. It's also a good reason to consider this ETF versus other dividend-focused ETFs, despite its young age and small current size. This ETF has little performance to speak of so far, but a look at its components reveals plenty of stocks that have fared reasonably well in recent years, considering our difficult economic conditions. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Source: Motley Fool

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