2 Dividend ETFs to Buy With $1,000 and Hold Forever

Core Viewpoint - Investing in quality dividend ETFs can enhance portfolio returns and provide capital for reinvestment or savings [1] Group 1: Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 index, focusing on 100 high-yield U.S. dividend stocks across various sectors [4] - Major holdings include Chevron, ConocoPhillips, PepsiCo, Amgen, Cisco, Merck, and AbbVie, among others [5] - The ETF emphasizes companies that have paid dividends for at least 10 consecutive years, ensuring financial strength and stability [6] - It has approximately $69 billion in total assets and an expense ratio of 0.06%, which is below the average for ETFs [7] - The ETF is passively managed, aiming to replicate its index's performance, resulting in lower expense ratios compared to actively managed funds [8] - It offers a yield of about 3.85%, significantly higher than the average S&P 500 stock yield of 1.3%, with a total 10-year return of about 200% and a payout increase of 160% [9][10] Group 2: Vanguard Dividend Appreciation ETF - The Vanguard Dividend Appreciation ETF (VIG) tracks the S&P U.S. Dividend Growers index, focusing on large U.S. companies that have consistently increased dividends for at least 10 years [11] - The fund has total net assets of $109.6 billion and contains 337 stocks, with a median market cap of $226 billion, predominantly large-cap companies [12] - Its current yield is around 1.65%, prioritizing dividend growth over high initial payouts, with a low expense ratio of 0.05% [13] - The ETF has delivered a total return of about 240% over the past 10 years, with dividends increasing by approximately 97% [14]