The Schwab U.S. Dividend Equity ETF is an ETF that tracks the Dow Jones U.S. Dividend 100 Index. The aim of the index is to track high dividend yielding stocks with a history of consistently paying dividends. The companies that pass the litmus test are some of the best run and most shareholder friendly companies in the country. It's important to emphasize the growing income stream as it has been growing steadily since the funds inception in 2011. The fund features an expense ratio of 0.07%, lower than many funds including one of SCHDs competitors VYM (0.10%). From my own personal circumstances, this is substantially lower than what I was experiencing and a big plus in my book.
The weakness in the equity markets in 2015 has also created a fantastic buying opportunity for those with long horizons. No one knows what will happen down the road but it feels like a steal being able to buy these companies for prices not seen since the beginning of 2014 along with an all time high yield. SCHD is a great ETF product that will allow investors to not only capture higher yield than a regular index fund but will also grow that income quicker than the index fund all while having a similar return profile. The constituent companies are gone through a rigorous screening process to only let the best ones into the fund. You then own a wide variety of companies while keeping your personal expenses low. It's for these reasons that it is a great base for building your retirement castle.
Source: Seeking Alpha
Related Articles:
- The Secret Ingredient of Dividend Growth Stocks
- 9 Dividend Stocks With A 10%+ Dividend Growth Rate
- 3 Styles Of Successful Dividend Investing
- Why Dividend Growth Stocks Are Evil
- Building Yield: 7 Consumer Goods Dividend Stocks
SCHD: A Great Foundation For Long-Term Wealth Building
Posted by D4L | Saturday, October 31, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
All seven equities on this list have dividend yields above 13%, but the highest one yields nearly 27%! In addition, each equity has a positi...
-
Dividend safety is especially important when stock prices are falling. Many companies cut their dividend payouts in 2020 during the coronavi...
-
Investors in retirement may desire additional income. Those who don’t have a pension are likely relying on Social Security, and their retire...
-
Dividend Aristocrats have a massive fan following among income investors, and for good reason: These are the only 65 stocks to have increase...
-
Investing in dividend-paying stocks is a good way to generate fairly reliable income. However, that strategy doesn't necessarily mean yo...
-
The four dividend-paying retail technology stocks to buy towered over the rest at a BoA Global Research Consumer & Retail Technology C...
-
Sometimes, stocks are a bargain because the company's prospects are being overlooked, and sometimes, it's just the result of a broad...
-
High yields are often found in sectors that are out of favor, which is why you can get some pretty impressive dividends from the energy sect...
-
Chasing growth is usually the right move for younger investors, but it can be a risky strategy for retirees. Generally speaking, retirees sh...
-
Of all the places to invest, there may not be a more recession-proof sector than water stocks. Consumers need access to clean water for drin...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.