The Ultimate Buy and Hold Dividend ETF for Any Market

Core Insights - Dividend investing is recognized as an effective strategy for generating passive income, but only a limited number of dividend-paying companies provide the desired stability and consistency for long-term investors [1] Group 1: ETF Overview - The Schwab U.S. Dividend Equity ETF (SCHD) was launched in 2011 and tracks the Dow Jones U.S. Dividend 100™ Index, which includes 100 companies that consistently pay dividends [4] - To qualify for inclusion in the index, companies must have paid dividends for at least 10 consecutive years, among other stringent criteria [4] - The ETF is managed by Charles Schwab Asset Management, a prominent asset manager in the United States [4] Group 2: ETF Metrics - As of December 26, 2025, SCHD holds nearly $72 billion in assets and has approximately 2.6 billion shares outstanding, with a net asset value (NAV) of $27.62 per share [7] - NAV is calculated by subtracting total liabilities from total assets and dividing by the number of outstanding shares, serving as a key metric for investors [7] - The trading price of the ETF relative to its NAV indicates whether it is trading at a premium or discount, although market demand and investor sentiment also influence valuation [8] Group 3: Distributions - SCHD pays distributions quarterly, with the last payout being 27.82 cents, resulting in a forward annual dividend rate of approximately $1.11 and a yield of around 4% [10] - Distributions may fluctuate based on the fund's actual income for the quarter, indicating variability in returns [10] - The ETF has a return on equity (ROE) of 28.71%, suggesting it earns roughly 29 cents for every dollar invested, which is a strong indicator of financial efficiency [10]