This Top Dividend ETF Is Relying on These Stocks to Fuel Its High-Yielding Payout

Group 1 - The Schwab U.S. Dividend Equity ETF (SCHD) offers access to 100 high-quality, high-yielding dividend stocks with a low expense ratio of 0.06% [1] - The ETF provides broad exposure to dividend stocks across various sectors, with a significant contribution from energy stocks [2] - The ETF aims to track the Dow Jones U.S. Dividend 100 Index, focusing on companies with strong financial strength and reliable dividends [4] Group 2 - The ETF's last annual reconstitution in March added 22 stocks, including five energy companies, resulting in an average dividend yield of 3.8% and an 8.4% annual growth rate over the past five years [4] - The energy sector currently accounts for over 19% of the ETF's assets, reflecting its high allocation and importance in fueling dividends [4] - The energy industry has the highest average dividend yield among the S&P 500 at 3.4%, significantly higher than the index's average of 1.2% [5] Group 3 - Chevron is the second-largest holding in the ETF, representing 4.4% of its assets, with a 4.4% dividend yield and a history of 38 consecutive years of dividend increases [8] - ConocoPhillips is the fourth largest holding at a 4.2% allocation, boasting a dividend yield of 3.4% and an 80% growth in dividends over the past five years [9] - Oneok, an energy infrastructure company, has a 1.8% allocation in the ETF and offers a robust 5.8% dividend yield, supported by stable cash flow from fee-based sources [10] Group 4 - Energy stocks are crucial for the ETF's ability to provide high-yielding and steadily rising dividends, with top holdings like Chevron, ConocoPhillips, and Oneok expected to continue delivering dividend growth [11]