The Smartest Dividend ETF to Buy With $1,000 Right Now

Core Insights - Stock price appreciation is a common focus for making money in the stock market, but dividends can also be an effective way to generate income from stocks [1] - High-quality stocks or ETFs provide guaranteed income through dividends, which can serve as a buffer during stock price declines [2] Group 1: Schwab U.S. Dividend Equity ETF (SCHD) - SCHD is recommended as a high-quality dividend ETF, with a $1,000 investment potentially yielding significant returns over time [2] - The ETF tracks the Dow Jones U.S. Dividend 100 Index, requiring companies to meet specific criteria for inclusion, thus reducing the risk of yield traps [5][6] - Notable companies within SCHD include Coca-Cola, Altria, PepsiCo, Target, and Kimberly Clark, all of which have a history of consistent dividend payouts [5][8] Group 2: Dividend Metrics - SCHD has averaged a 3.1% dividend yield over the past decade, with a current yield of 3.7%, significantly higher than the S&P 500 [6][9] - The ETF maintains one of the lowest expense ratios among dividend ETFs, enhancing its attractiveness for investors [6] - Key criteria for companies included in SCHD are a strong balance sheet, consistent cash flow, at least 10 years of dividend payouts, and strong profitability metrics [7]