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1 Top ETF I Wouldn't Hesitate to Invest $1,000 Into Right Now
Yahoo Financeยท2025-09-29 08:42

Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) is favored for its exposure to high-quality dividend-paying stocks, providing both income and growth potential [3][4][5] - The ETF currently offers a dividend yield of approximately 3.7%, significantly higher than the S&P 500's yield of below 1.2% [6] - The fund's holdings have increased their dividend payments at a compound annual growth rate of over 8% in the past five years, indicating strong financial health [6] Fund Characteristics - The Schwab U.S. Dividend Equity ETF includes 100 top dividend stocks selected based on a systematic evaluation of dividend quality [4] - Key metrics for stock selection include cash flow to debt, return on equity, dividend yield, and five-year dividend growth rate, ensuring only financially robust companies are included [4][5] - The ETF serves as a complementary investment for those already holding dividend-paying stocks, enhancing overall portfolio diversification [3][8] Notable Holdings - AbbVie (NYSE: ABBV) is the top holding in the ETF, representing 4.2% of its assets, with a strong history of dividend increases since its spinoff from Abbott Laboratories [9] - AbbVie has raised its dividend by 310% since its separation, currently offering a 3% dividend yield, showcasing the potential for sustainable income [9]