Investors are seeking calm in the face of market volatility, and one strategy stands out: the Schwab U.S. Dividend Equity ETF (SCHD). This fund tracks the Dow Jones U.S. Dividend 100 Index, focusing on U.S. companies with robust financials and consistent dividends.
SCHD’s strength lies in its disciplined approach, selecting stocks with a decade of uninterrupted dividend growth. It also ranks them by cash flow strength, return on equity, yield, and dividend growth history. This process yields a portfolio of resilient dividend titans like Altria (MO) and Chevron (CVX).
The ETF maintains a lean, high-quality roster, even after rotating names in its 2025 reconstitution. Its sector balance is also notable, with 19% in financials, 17% in healthcare, and 14% in consumer staples. This diversification insulates it from market downturns.
SCHD’s yield is three times greater than the S&P 500’s 1.4%, delivering steady income. The ETF has outpaced its 12% decade-long average, with a 22% growth in its latest payout. Studies have shown that dividend stocks hold firm in past bear markets, generating 6% annual returns over the last 50 years.
With an expense ratio of 0.06%, SCHD preserves wealth in turbulent times. Its diversification and low beta of 0.82 make it a haven when markets gyrate. The ETF’s reliability is unmatched for those prioritizing income over speculative gains, making it a prudent choice for investors seeking peace of mind during uncertain market swings.
Source: https://moneymorning.com/2025/04/14/shelter-from-the-storm-schwab-u-s-dividend-equity-etf-schd