Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF (SCHD) is a popular choice for investors seeking dividend-focused investments. Here are the key highlights:
- Tracking Index: Passively tracks the Dow Jones U.S. Dividend 100 Index.
- Expense Ratio: Low at just 0.06%.
- Trailing Yield: Currently stands at 3.13%.
Top Holdings
The ETF’s major holdings include:
- Abbott Laboratories
- Amgen
- Merck
- Coca-Cola
Since its inception on October 20, 2011, SCHD has delivered an impressive total return of 562%.
( Image source: Getty Images )
Potential Income Over 20 Years
While past performance doesn’t predict future results, investing $100 monthly in SCHD for the next 20 years can be a straightforward way to grow your retirement portfolio.
Financial Projections
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If SCHD maintains a historical growth rate of 10% annually:
- Total investment: $24,000 over 20 years (240 months).
- With reinvested dividends growing at 3.5%, portfolio value would reach nearly $76,000.
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Without reinvesting dividends, the portfolio would grow to about $49,000, plus approximately $15,000 in dividends over the same period, totaling $64,000.
Current Market Data
- Today’s Change: -0.77% ($-0.27)
- Current Price: $34.26
- Assets Under Management: $109B
- Dividend Yield: 3.06%
- Top Holdings Weights:
- Abbott (4.77%)
- Amgen (4.59%)
- Merck (4.43%)
Conclusion
Investing in SCHD not only provides potential capital appreciation but also offers substantial income through dividends, making it an attractive option for long-term investors.
(Author: Leo Sun, positions in Coca-Cola, The Motley Fool has positions in and recommends Abbott Laboratories, Amgen, and Merck.)
