Investor Boosts Portfolio with Schwab U.S. Dividend Equity ETF for High Dividend Yields
A savvy investor has revealed their plans to boost their portfolio with the Schwab U.S. Dividend Equity ETF (SCHD). This fund, tracking the Dow Jones U.S. Dividend 100 Index, has caught the investor's eye due to its impressive dividend yields and growth rates.
The Schwab U.S. Dividend Equity ETF holds 100 top higher-yielding dividend stocks, selected through a systematic process. AbbVie (ABBV) is the top holding, making up 4.71% of the fund's assets. AbbVie offers a 3% dividend yield and has seen a remarkable 310% dividend growth since its 2013 spinoff. Other notable companies in the top 100 holdings include Coca-Cola, Amgen, Cisco, Lockheed Martin, Verizon, ConocoPhillips, and Chevron Corp.
Coca-Cola, with a 3.9% allocation, has extended its dividend growth streak to 63 years and paid over $8.4 billion in dividends last year. The fund's holdings have collectively increased their dividend payments at a more than 8% compound annual rate over the past five years, offering a current dividend yield of around 3.7%, triple that of the S&P 500. The investor, who primarily focuses on individual stocks, is attracted to the fund's diversification and plans to invest another $1,000, which would generate about $37 in annual dividend income.
The investor's decision to allocate more funds to the Schwab U.S. Dividend Equity ETF demonstrates confidence in the fund's strategy and the potential for continued dividend growth and income. With its diversified portfolio of top dividend-paying stocks, the fund offers an attractive option for income-oriented investors.
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