One ETF That's Standing Out as a Top Buy Today

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) has shown strong long-term performance, delivering over 10% average annualized total return over the last three, five, and ten years, as well as since its inception in 2011 [1][2]. Group 1: Performance Overview - In the past year, the fund's return has been negative at -0.8%, contrasting with its historical success [2]. - The ETF focuses on high-performing stocks, tracking an index of 100 top high-yield dividend stocks, with an average annualized dividend yield approaching 4%, significantly higher than the S&P 500's 1.2% yield [3]. Group 2: Dividend Growth Impact - Dividend growth has historically contributed significantly to total returns, with S&P 500 stocks that paid growing dividends delivering an average annual total return of 10.2%, compared to 4.3% for non-dividend payers and 6.8% for those that did not increase payouts [4]. Group 3: Market Sentiment and Investment Opportunity - Currently, dividend stocks are less favored as investors focus on growth sectors like AI, but they have proven to be strong long-term performers, making SCHD an attractive investment opportunity [6]. - The potential for strong total returns in the coming years is supported by the expectation that its holdings will increase their payouts and that investor sentiment will shift back towards dividend stocks [6].