Is the Schwab U.S. Dividend Equity ETF a Buy Now?
The Schwab U.S. Dividend Equity ETF (SCHD) offers a compelling middle ground for dividend investors, tracking the Dow Jones U.S. Dividend 100 Index. This index excludes REITs and focuses on companies with a decade of dividend growth, financial strength, and robust cash FLOW metrics. The ETF's passive strategy mirrors the index's elite selection of 100 high-scoring firms.
Dividend yield and five-year growth rates weigh heavily in the composite score, ensuring a balanced approach to income and quality. For investors seeking steady returns without active management, SCHD presents a disciplined, low-cost option in today's market.