Why the Schwab U.S. Dividend Equity ETF Could Be a Top Choice for Dividend Investors in 2025

Group 1 - The article emphasizes the advantages of investing in dividend exchange-traded funds (ETFs) over individual dividend stocks, highlighting the benefits of regular payouts and diversification [1] - The Schwab U.S. Dividend Equity ETF (SCHD) is identified as a top choice for income investors in 2025, particularly due to its strong performance and low expense ratio [2][4] - The SCHD ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on stocks with a history of consistent dividend payouts and superior fundamentals [3] Group 2 - The SCHD ETF has a low expense ratio of 0.06%, translating to $6 in annual fees per $10,000 invested, and manages total net assets of $71 billion [4] - The top holdings of the SCHD ETF include companies from dividend-friendly sectors such as healthcare, energy, consumer cyclical, and industrial [5] - The SCHD ETF offers one of the highest dividend yields compared to other funds in its class, making it appealing for income-focused investors [7][9] Group 3 - While the SCHD ETF provides consistent payouts, the actual distribution amounts may vary due to different dividend schedules of the underlying companies [5] - The article notes a limited exposure to the technology sector within the SCHD ETF, which may be a concern for investors looking to capitalize on tech trends [10] - Investors are advised to consider adding a tech ETF or top-performing tech stocks to their portfolio for exposure to major trends like artificial intelligence, alongside the SCHD ETF [11]