Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) offers a pathway to potentially reach $800,000 through consistent investments over time, emphasizing the importance of patience in investing [1][5]. Investment Rationale - SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with financial stability and strong cash flow, which results in a portfolio of reliable, established businesses rather than high-growth, volatile firms [3]. - The ETF's top five holdings include Lockheed Martin (4.63%), Chevron (4.19%), Merck & Co. (4.11%), Home Depot (4.07%), and Bristol Myers Squibb (4.05%), showcasing a focus on sectors like energy and industrials [3]. Performance Metrics - Since its inception in October 2011, SCHD has averaged annual total returns of 12.6%, with projections indicating that a monthly investment of $500 could grow to over $800,000 in approximately 25 years, assuming a consistent 12% annual return [5][6]. - The ETF has maintained an average dividend yield of around 2.8% since inception and 3.2% over the past decade, suggesting that an $800,000 investment could yield $24,000 annually [6].
1 ETF Could Turn $500 Monthly Into a $800,000 Portfolio That Pays $24,000 in Annual Dividend Income
The Motley Fool·2026-01-25 00:30