Could Buying the Schwab US Dividend Equity ETF Today Set You Up for Life?

Core Insights - The Schwab US Dividend Equity ETF is designed for dividend investors seeking reliable income with minimal effort, tracking the Dow Jones U.S. Dividend 100 index which selects companies based on a composite score [2][4][5] - The ETF focuses on companies with strong financials, a history of dividend growth, and attractive valuations, making it a suitable option for long-term income generation [6][7][10] Investment Approach - The ETF's investment strategy mirrors that of income investors, selecting the top 100 companies based on a composite score that includes financial strength and dividend growth [5][7] - The index only includes stocks with a minimum of 10 consecutive years of dividend increases, excluding real estate investment trusts due to their unique structures [3] Performance Metrics - The ETF has a low expense ratio of 0.06%, making it cost-effective for investors [6] - Historical performance shows that both the ETF's price and dividend have trended higher over time, indicating solid growth potential for dividend investors [8] Dividend Yield Consideration - The ETF offers a dividend yield of approximately 3.8%, which some investors may find low, but it is essential to consider the long-term growth potential of the dividend [9][10] - A lower starting yield with expected steady growth may be more beneficial for investors in the long run, especially in the context of inflation [10]