Schwab U.S. Dividend Equity ETF (NYSE: SCHD) generally invests in stocks included in the index. The index is designed to measure the performance of high dividend-yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The fund will invest at least 90% of its assets in these stocks.
FUND OVERVIEW
- Net Assets: 60.62 Billion
- NAV: 84.24
- PE Ratio: 15.98
- Yield: 3.35%
- YTD Daily Total Return: 13.74%
- Expense Ratio: 0.06%
- Inception Date: 10-20-2011
The Schwab dividend ETF offers a significantly higher dividend through a more selective list of about 100 blue-chip stocks. Top holdings include defense giant Lockheed Martin Corp., AbbVie Inc., BlackRock Inc., and Coca-Cola Co. With mega-cap tech stocks dominating the prior fund, the absence of Silicon Valley giants on that list is noteworthy. The technology sector only makes up around 10.41% of the portfolio, while leading sectors include financial services (18.29%), followed by health care (15.98%), and consumer defensive (14.60%). This focus on more income-oriented sectors helps lift the overall yield of SCHD.
Top 10 Holdings (41.01% of Total Assets)
| Name | Symbol | % Assets |
|---|---|---|
| Lockheed Martin Corp | LMT | 4.49% |
| AbbVie Inc | ABBV | 4.36% |
| BlackRock Inc | BLK | 4.20% |
| Coca-Cola Co | KO | 4.16% |
| The Home Depot Inc | HD | 4.10% |
| Cisco Systems Inc | CSCO | 4.03% |
| Texas Instruments Inc | TXN | 4.02% |
| Amgen Inc | AMGN | 3.99% |
| Bristol-Myers Squibb Co | BMY | 3.95% |
| Verizon Communications Inc | VZ | 3.71% |
Therefore, SCHD is the best dividend ETF to own and hold for the long-term investors.