Prediction: Buying High-Yield Schwab U.S. Dividend Equity ETF Today Could Set You Up for Life

Core Viewpoint - Schwab U.S. Dividend Equity ETF offers an attractive yield of 3.6%, significantly higher than the average yield of 1.2% for S&P 500 stocks, making it a compelling option for long-term dividend investors [2][9] Group 1: ETF Overview - Schwab U.S. Dividend Equity ETF is an index-tracking ETF that follows the Dow Jones U.S. Dividend 100 Index, which was specifically created for this ETF [3] - The index excludes stocks with fewer than 10 consecutive annual dividend increases and real estate investment trusts (REITs), focusing on financially strong companies [5] - Stocks are scored based on cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate, ensuring a selection of companies with growth potential and a history of dividend increases [6][8] Group 2: Investment Features - The ETF provides a balanced combination of yield and capital growth, making it suitable for investors seeking reliable income without the need for extensive stock selection [9][10] - With a modest expense ratio of 0.06%, the ETF is cost-effective for investors [8] - Schwab U.S. Dividend Equity ETF can serve as a foundational investment for dividend investors and can be paired with bond ETFs or other dividend-focused ETFs for a diversified portfolio [10][11] Group 3: Long-term Income Potential - The ETF's unique approach to selecting dividend stocks positions it to deliver a reliable income stream for investors over the long term, allowing for tailored investment strategies [11]