2 Dividend ETFs to Buy With $500 and Hold Forever

Core Insights - Dividend stocks are essential for a diversified portfolio, providing stability and passive income during market downturns [1][2] - They are particularly valuable for investors needing passive income, such as retirees, as they prioritize safety over market outperformance [2] Investment Vehicles - Investing in dividend stocks through ETFs offers broad exposure and protection for portfolios [3] - Recommended ETFs include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) for those with $500 to invest [3] Schwab U.S. Dividend Equity ETF - The Schwab ETF tracks the Dow Jones U.S. Dividend 100 Index, holding approximately 102 stocks across various sectors [5] - Major holdings include Bristol-Myers Squibb, Merck, ConocoPhillips, Lockheed Martin, and Chevron, each representing about 4% of the portfolio [6] - The ETF has a current dividend yield of 3.7% and a low expense ratio of 0.06% [7] Performance Metrics - Over the past five years, the Schwab ETF has increased by 55%, while the S&P 500 has nearly doubled [8] - The ETF is priced at $28 per share, making it accessible for investors with limited capital [8]