Published Mon, 16 Nov 2020 08:47:08 -0500 on Seeking Alpha
Seeking AlphaETF AnalysisSchwab U.S. Dividend Equity ETF: An Elaborate Cocktail Available At A DiscountNov. 16, 2020 8:47 AM ET|| About: Schwab Strategic Trust - Schwab U.S. Dividend Equity ETF (SCHD), Includes: DVYby: Chetan WoodunChetan Woodun Medium-term horizon, ValueSummaryA dividend ETF is a fruitful alternative to keeping money in the bank or having to screen individual stocks.
In this case, the Schwab U.S. Dividend Equity ETF is a low-cost dividend investment tool but delivers great performance when compared with peers.
Just as with any investment, there are risks and it is important for the investor to limit these through awareness when making a choice.
Beforehand, for investors used to growth stocks, it is important to make the case of a dividend ETF as an investment tool.
Dividend ETF as investment tool
While we are confined to our homes, waiting for the vaccine and dreaming about the next time we climb aboard a cruise ship, we can always put our money to work, more so bearing in mind that our children may not have the opportunities we enjoyed.
Now, there are various ways to monetize that hard-earned cash and in the current low interest rate environment with no yield out there in the bond market, stocks with dividends are popular with investors. Those who invest in stocks or ETFs also benefit from dividends. One way to achieve attractive returns is to stick with dividend stocks paying consistent yields.
In addition, the decision in favor of an ETF should never be made solely on the basis of expected dividends, but always against the background of personal financial circumstances and with the knowledge that stocks and equity ETFs are subject to strong price fluctuations. This is the reason that it's important to be choosy even if it means spending countless hours in the selection process.
This is especially true for those who have recently joined the ranks of value investing previously used to trading in high-growth tech stocks paying... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ISHARES DOW JONES SELECT DIVIDEND INDEX FUND||103.22||0.0||0.00||3.37||3.31|
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