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3 Things You Need to Know Before You Buy the Schwab U.S. Dividend Equity ETF


Published on 2025-02-08 11:01:16 - MSN
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  • The S&P 500 index currently yields a tiny 1.2%. You can get roughly three times the yield if you buy the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). The big benefit, however, is that the stocks it holds are vetted for quality and yield.

The article from MSN Money discusses key considerations for potential investors in the Schwab U.S. Dividend Equity ETF (SCHD). Firstly, it highlights SCHD's investment strategy, which focuses on companies with a history of paying dividends, aiming for both income and capital appreciation. The ETF tracks the Dow Jones U.S. Dividend 100 Index, selecting companies based on financial health, yield, and dividend consistency. Secondly, performance and yield are discussed; SCHD has a competitive yield compared to other dividend ETFs, with a historical performance that has generally been strong, though past performance isn't indicative of future results. Lastly, expense ratio and diversification are emphasized, noting that SCHD has a low expense ratio which is beneficial for long-term investors, and it offers diversification across various sectors, reducing risk. The article advises understanding these aspects to make an informed investment decision.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/3-things-you-need-to-know-before-you-buy-the-schwab-u-s-dividend-equity-etf/ar-AA1yEGJi ]