The Schwab U.S. Dividend Equity ETF (SCHD) is a notable choice for investors seeking dividend income. It offers a current yield of approximately 3.3% and an impressive 11.2% compound annual growth rate (CAGR) in dividends since 2017.
Highlights:
- Initial Investment: $5,000 could yield $162.50 annually based on a 3.25% yield.
- Expected Growth: If dividends grow conservatively at 9% per year, projected cumulative income over 20 years could be $8,313.52.
- Year 20 Projection: By the end of 20 years, the investment may generate around $835.52 yearly, increasing the yield on cost to 16.7%.
The ETF’s strategy of selecting companies based on dividend quality and growth makes it a solid long-term investment.
