7 Dividend ETFs to Buy With $2,000 and Hold Forever -- Including the Schwab U.S. Dividend Equity ETF (SCHD)

Core Insights - Dividend-paying stocks are attractive investments due to their potential for regular payout increases and overall portfolio growth [1][3] Group 1: Dividend Performance - Dividend growers and initiators have an average annual total return of 10.24% from 1973 to 2024, while dividend payers yield 9.20% [3] - Stocks with no change in dividend policy return 6.75%, and non-payers return 4.31%, indicating the strong performance of dividend-paying stocks [3] - Dividend shrinkers and eliminators have a negative return of -0.89%, highlighting the risks associated with such stocks [3] Group 2: Recommended Dividend ETFs - iShares Preferred & Income Securities ETF (PFF) offers a yield of 6.63% with a 5-year average annual return of 1.71% [6][7] - State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) has a yield of 4.46% and a 5-year average annual return of 9.96% [6] - Schwab U.S. Dividend Equity ETF (SCHD) provides a yield of 3.74% with a 5-year average annual return of 8.56% [6][8] - Fidelity High Dividend ETF (FDVV) has a yield of 3.02% and a 5-year average annual return of 16.03% [6] - iShares Core Dividend Growth ETF (DGRO) yields 1.98% with a 5-year average annual return of 11.72% [6] - Vanguard Dividend Appreciation ETF (VIG) offers a yield of 1.59% and a 5-year average annual return of 11.70% [6][10] - Vanguard S&P 500 ETF (VOO) has a yield of 1.12% with a 5-year average annual return of 14.91% [6][11] Group 3: ETF Characteristics - The iShares Preferred & Income Securities ETF focuses on preferred stocks, which typically offer fixed dividends [7] - The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 index, emphasizing high-quality companies with a history of dividend payments [8] - The Vanguard Dividend Appreciation ETF targets companies that have consistently increased dividends for at least 10 years, excluding those with excessively high yields [10]