"But picking the right dividend ETFs can also be a hassle for beginners. So we devised a list of the best dividend ETFs for investors who don't want stock-picking stress. A lot of these funds screen companies for more than just high yields. They also look for companies with strong financials and track records of consistently paying dividends and even increasing them over time. They are also well-diversified across multiple market sectors. And some have very competitive fees or expense ratios."
"To get around this, many investors turn to exchange-traded funds (ETFs). These are professionally managed funds that invest in a handful of stocks and offer instant diversification. But there are also dividend ETFs. Dividends are regular payments that companies pay to shareholders out of their profits. And dividend ETFs invest in baskets of dividend stocks handpicked by the pros. Dividend ETFs may offer a regular income stream in addition to capital appreciation."
"SCHD invests in high-quality companies with reputable financial strength and a consistency in paying dividends. It generates a yield of about 4%, while also delivering a five-year return of over 35%. The fund is well diversified across multiple sectors. Its main holdings include companies in the energy, consumer staples and healthcare sectors. The last two are part of the defensive sectors, which tend to perform well under various market conditions. Combined, these characteristics can give investors stability, capital appreciation and reliable income."
Dividend ETFs are professionally managed funds that invest in baskets of dividend-paying stocks, providing instant diversification and potential regular income plus capital appreciation. Many dividend ETFs screen for more than high yield, prioritizing companies with strong financials, consistent dividend payments, and dividend growth. Several funds are diversified across multiple sectors and may offer competitive fees or low expense ratios. Schwab U.S. Dividend Equity ETF (SCHD) targets high-quality companies with financial strength and consistent dividends, yielding about 4% and delivering a five-year return of over 35%. SCHD's holdings tilt toward energy, consumer staples, and healthcare, offering stability and reliable income.
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