"SCHD is the workhorse dividend ETF for investors who want to get paid now without sacrificing quality. This ETF tracks the Dow Jones U.S. Dividend 100 Index, a rules-based basket of 100 high‑quality U.S. dividend payers. Importantly, this ETF's portfolio companies are screened for sustainable payouts, strong cash flow, and attractive fundamentals."
"The fund's expense ratio sits at a rock-bottom 0.06%, meaning you're barely paying anything for a fully managed, rules-driven portfolio of blue-chip dividend names. With a current dividend yield near 3%, investors are getting more than double what investors get from many broad-market ETFs today."
Building a meaningful passive income portfolio through dividend ETFs offers long-term investors reliable income streams, particularly beneficial for retirement planning and tax-advantaged accounts. Dividend ETFs provide multiple income sources that can cushion against life disruptions like job loss or illness. SCHD tracks 100 high-quality U.S. dividend payers screened for sustainable payouts and strong fundamentals across defensive sectors like industrials, consumer staples, healthcare, energy, and financials. With a 0.06% expense ratio and 3% dividend yield, SCHD offers significant advantages over broad-market ETFs. The fund maintains a modest valuation with a high-teens price-to-earnings ratio, providing value positioning while delivering reliable income from blue-chip companies with strong balance sheets.
Read at 24/7 Wall St.
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