Top Dividend-Focused ETF Picks for Portfolio Diversification
The Schwab U.S. Dividend Equity ETF (SCHD) stands out as a premier choice for investors seeking sustainable dividend yields. Unlike funds that prioritize high yields alone, SCHD employs stringent criteria to select blue-chip companies with proven dividend longevity. Holdings include Dividend Kings—firms with 50+ years of consecutive payout increases—such as Chevron, though most constituents surpass this benchmark.
Currently yielding 3.8%, a $1,000 investment in SCHD could generate $38 annually. The fund’s disciplined approach offers stability amid market fluctuations, making it a cornerstone for income-focused portfolios.