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Schwab U.S. Dividend Equity ETF: A Great Alternative To SDY

Published Mon, 30 Sep 2019 08:14:58 -0400 on Seeking Alpha

In my previous article, I talked about the SPDR S&P Dividend ETF (SDY) which gives investors exposure to 112 high-quality dividend stocks. SDY, however, offers a lower dividend yield as compared to many dividend ETFs. For those who would like an above-average yield of more than 3% and want to invest in great dividend-paying companies should consider the Schwab U.S. Dividend Equity ETF (SCHD). Unlike SDY, SCHD doesn’t pick stocks with a long history of consistent dividend growth. But SCHD still holds some great stocks in its portfolio which have been growing dividends for at least a decade. SCHD primarily holds well-established large-cap companies who can withstand the tough market conditions. Moreover, Schwab U.S. Dividend Equity ETF features a low expense ratio.

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The SDY follows a strict rule of selecting stocks which have consistently grown dividends for at least two decades. A vast majority of dividend stocks can’t meet this requirement. But those who do are considered some of the safest dividend stocks. These companies have shown that they can generate reliable levels of profits and cash flows, year in and year out, even as they go through various business cycles, recessions, and face all sorts of challenges. SCHD’s requirements are far more relaxed, but its portfolio still consists of some of the best dividend stocks around.
In my view, this might be a good time for investors to increase their exposure to some high-quality... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36


Older articles featuring Spdr S&p Dividend Etf (SDY):
Dividend Offense, Dividend Defense: This ETF Strategy Systematically Avoids Dividend Risks (Podcast Transcript)
Dividend Offense, Dividend Defense: This ETF Strategy Systematically Avoids Dividend Risks (Podcast)
Dividend Investing In A Volatile Market
Dividend Growth: Why It Matters
iShares Select Dividend ETF: Investors May Want To Seek Opportunities Elsewhere
Buy Dividends, Not Buybacks
Dividend Growth Investing Doesn't (Necessarily) Work
Performance Of Dividend ETFs During The Crash
DGRO: Here's Why This Is Our Top-Pick Among Dividend Growth ETFs
Reduce Volatility With High Yield - The Income Method