Think You Missed Your Chance to Invest? It's Not Too Late to Start Smart

Core Viewpoint - The S&P 500 is near all-time highs, but this should not deter long-term investment strategies. Building wealth takes time, and starting now is crucial. The Schwab US Dividend Equity ETF (SCHD) is presented as a viable investment option [1]. Group 1: Schwab US Dividend Equity ETF Overview - The Schwab US Dividend Equity ETF is an exchange-traded fund that tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with a strong history of dividend increases [2]. - The index selects companies that have at least 10 consecutive years of annual dividend increases, excluding real estate investment trusts to focus on well-managed firms [3]. - A composite score for each company is created based on factors like cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate, aiming to identify financially strong companies with growing dividends [4]. Group 2: Index Composition and Management - The index includes the 100 highest-ranked companies based on market capitalization, ensuring that larger companies have a more significant impact on performance. The portfolio is updated annually to reflect the best stocks according to the index's criteria [5]. - The ETF offers a low expense ratio of 0.06%, making it an attractive option for investors seeking dividend income [5]. Group 3: Investment Strategy and Timing - Wealth accumulation is emphasized as a long-term endeavor requiring patience. Despite the current market conditions, the dividend-focused ETF has been underperforming, suggesting that now is an opportune time to invest [6]. - The Schwab US Dividend Equity ETF simplifies the investment process for dividend investors by providing a diversified portfolio of dividend stocks in a single purchase [7].