It is difficult to overcome passive income. Identify your investment and then you regularly flow, you don’t have to work or work hard. There are also many passive forms of income such as real estate rental vouchers, interest payments from savings accounts or you own bonds, royalties from your books and dividends from dividend paid shares or dividend funding (ETFs).
Here’s a look at the particularly attractive way of collecting passive income: Schwab US DIVIDEND EQUITY ETF (NYSEMKT: SCHD); As an ETF, it is a fund that sells as shares. And this offers not only dividend income but also Grows Dividend revenue and the likelihood that its components are increasing over time.
Image Source: Getty Images.
If you are not selling dividend investment power yet, review the table below:
A state of payment of dividends
Average annual overall return, 1973-2024.
Dividend growers and initiators
10.24%
Dividend payers
9.20%
Changes in dividend policy are not
6.75%
Persons who do not pay dividends
4.31%
Dividend contractions and eliments
(0.89%)
S&P 500 index equally rated
7.65%
Data Source: Ned Davis Research and Hartford Funds.
To see? Dividend -paying campaigns are not a boring investment of grandparents. They are suitable for all types of investors and also work quite well. This is partly because the company has to grow enough to have a fairly reliable income before it is committed to paying regular dividends.
There are many dividends -oriented ETFs, so what is so great at Schwab US dividend shares ETF? Well, although some dividends ETFs provide a lot of income, but relatively low growth, while others are strong growers, they do not offer so much income, but this ETF reaches a beautiful balance between them.
The Schwab US Dividend Equity ETF has recently had a very strong dividend yield of 3.9%. This is followed by the Dow Jones US Dividend 100 index, which is “designed to assess the high dividend fertility stock in the US, taking into account the record for the continuously paid dividends for the main force compared to their peers based on financial relations.”
As an index fund, it aims to return approximately the same return as the index followed by an IT arrow, less of its taxes, which are quite rude. The ETF expense ratio (annual fee) is 0/06%, which means that for $ 10,000 you have invested in ETFs, prices for more than $ 6 per year.
Here are the latest top 10 ETF holdings:
Stock
Weight ETF
The latest yield
Texas instruments
4.35%
2.53%
Chevron
4.22%
4.56%
Pepsiico
4.16%
3.90%
Cisco systems
4.11%
2.41%
Conocophillips
4.10%
3.36%
Amgen
3.99%
3.11%
Merck
3.92%
3.97%
Altria Group
3.84%
6.86%
Abbvie
3.82%
3.51%
Verizon Communications
3.80%
6.31%
Source: Morningstar.com, from 2025 July 22
You may notice that these 10 (out of approximately 100) holdings, which are about 40% of the ETF value, pay meaningful dividends. And as long as they remain healthy and grow, they will probably increase their benefits over time. Note that the S&P 500 index recently gave 1.23%.
Finally, take a look at the ETF acting in the past. I will include the S&P 500 performance for comparison using Vanguard S&P 500 ETF(NYSEMKT: Flight):
Foundation
Average 3 -year annual profit
Average 5 -year annual profit
10 years of average annual profit
Schwab US DIVIDEND EQUITY ETF
8.14%
12.54%
11.39%
Vanguard S&P 500 ETF
18.49%
15.69%
13.51%
Source: Morningstar.com, from 2025 July 22
You may find that average investors are likely to notice that their money is growing faster at the S&P 500 Index Foundation, but they will not get almost as much income as Schwab ETF. Some investors may want to build part of their long -term portfolio in each ETF. Any or both will provide decades of passive income, although the person will give more.
Before buying shares at the Schwab US DIVIDEND EQUTITY ETF, consider this:
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Selena Maranjian holds ABBVie, Altria Group, Amgen, Schwab US Dividend Equity ETF and Verizon Communications. Motley fools are positions and recommend Abbvie, Amgen, Chevron, Cisco Systems, Merck, Texas Instruments and Vanguard S&P 500 ETFs. The Motley fool recommends Verizon Communications. The Motley fool has a disclosure policy.
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