Published Sun, 14 Apr 2019 14:51:00 -0400 on Seeking Alpha
I have talked plenty about dividend investing. Recently, I reinforced my convictions that WisdomTree's U.S. Quality Dividend Growth Fund (DGRW) features as one of the most compelling ETFs of its kind in the market.
Today, I look at a larger and possibly better-known competitor to WisdomTree's offering: Schwab's U.S. Dividend Equity ETF (SCHD). With a rock-bottom expense ratio of 0.06%, could this be another solid alternative to diversified dividend investing?
Credit: Stock Investor
I will skip going any deeper into the case for owning dividend-paying stocks. Suffice to say that "dividend payers have clearly outperformed non-dividend payers over a very long period time, having achieved the feat with even lower volatility". Obviously, those who do not find their investment styles compatible with buying into this type of security might rightfully want to rule out an investment in SCHD from the get-go.
Speaking of investment style, SCHD tracks the Dow Jones U.S. Dividend 100 Index, which in turn "represents 100 high dividend-paying U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios". The top stocks contained within this index are well-known household names: Home Depot (HD), Procter & Gamble (PG), Intel (INTL), Verizon (VZ) and PepsiCo (PEP) combined made up nearly one-fourth of the total portfolio as of April 2019.
Source: Charles Schwab's web site
... Read more