Why This Top Dividend ETF's 13% Decline Made it a Must-Buy for My Retirement Account

I've had my eye on the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) for a while. As I'm an income-focused investor, the exchange-traded fund (ETF) is right up my alley. It holds 100 of the top high-yielding dividend stocks, focusing on companies with high-quality payouts. That's why I couldn't resist the opportunity to add this high-quality dividend ETF to my portfolio following the 13% decline in its price from its high point earlier this year. As a result, the fund now has a yield of over 4% based on its latest dividend payment, well above the 1.5% dividend yield of the S&P 500. That high yield from such a high-quality fund made it a must-buy for my retirement account. The Schwab U.S. Dividend Equity ETF is a passively managed fund that tracks the Dow Jones U.S. Dividend 100 Index. That index aims to measure the performance of high-yielding dividend stocks in the U.S. that consistently pay dividends. It selects companies based on their strength relative to their peers. Continue reading

Apr 10, 2025 - 09:43

Why This Top Dividend ETF's 13% Decline Made it a Must-Buy for My Retirement Account

I've had my eye on the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) for a while. As I'm an income-focused investor, the exchange-traded fund (ETF) is right up my alley. It holds 100 of the top high-yielding dividend stocks, focusing on companies with high-quality payouts.

That's why I couldn't resist the opportunity to add this high-quality dividend ETF to my portfolio following the 13% decline in its price from its high point earlier this year. As a result, the fund now has a yield of over 4% based on its latest dividend payment, well above the 1.5% dividend yield of the S&P 500. That high yield from such a high-quality fund made it a must-buy for my retirement account.

The Schwab U.S. Dividend Equity ETF is a passively managed fund that tracks the Dow Jones U.S. Dividend 100 Index. That index aims to measure the performance of high-yielding dividend stocks in the U.S. that consistently pay dividends. It selects companies based on their strength relative to their peers.