Stock market, as measured S&P 500 The index of America’s 500 largest companies is down 5.4% this year through March 24. When the S&P 500 is down, it means that more than a few companies’ stocks are also down. And with dividend-paying stocks, a lower stock price means an increased dividend yield.
Image Source: Getty Images.
So, which dividend payer should you consider for your long-term portfolio, whether you have $10,000 or $100 or $100,000 to invest? Well, I suggest buying bunch of solid dividend payers through a single Exchange-Traded Fund (ETF): The Schwab US Dividend Equity ETF (SCHD 0.59%). (Remember that an ETF is a fund that trades like a stock.)
Schwab US Dividend Equity ETF
today’s change
(-0.59%) $-0.18
current price
$30.44
key data points
day limit
$30.37 -$30.68
52wk range
$23.87 -$31.95
volume
23m
Why Schwab US Dividend Equity ETF? Well, because it offers the best of two worlds – price appreciation and dividend income. The S&P 500 recently displayed a dividend yield of only 1.1%. But the Schwab ETF yield was recently 3.3% – 3 times higher! Also see its performance:
|
Duration |
average annual profit |
|---|---|
|
last 3 years |
12.90% |
|
last 5 years |
8.92% |
|
last 10 years |
12.36% |
Data source: Morningstar.com, as of March 24, 2026.
The ETF tracks an index of healthy dividend payers, approximately 100 of which are dividend holders. Here are the recent top 10 holdings:
|
store |
weight in etf |
recent produce |
|---|---|---|
|
1. beam |
4.58% |
5.31% |
|
2. ConocoPhillips |
4.20% |
2.60% |
|
3. Verizon Communications |
4.10% |
5.56% |
|
4. merck |
3.99% |
2.92% |
|
5. Texas Instruments |
3.96% |
2.92% |
|
6. Coca Cola |
3.94% |
2.76% |
|
7. UnitedHealth Group |
3.84% |
3.25% |
|
8. Abbott Laboratories |
3.79% |
2.42% |
|
9. PepsiCo |
3.79% |
3.78% |
|
10. amgen |
3.79% |
2.89% |
Data Source: Yahoo! Finance and Morningstar.com, as of March 25, 2026.
This single investment will help you indirectly own shares of around 100 solid dividend payers that are likely to grow over time and yield generous dividends. passive income That too should increase with time. Should the stock market decline or fall, most of the fund’s components will likely continue paying their dividends as well, making it a strong holding in difficult times. Overall, it’s a tough proposition to beat.
selena maranjian There are positions in Amgen, Schwab US Dividend Equity ETF and Verizon Communications. The Motley Fool has positions in and recommends Abbott Laboratories, Amgen, Chevron, Merck, and Texas Instruments. The Motley Fool recommends ConocoPhillips, UnitedHealth Group, and Verizon Communications. The Motley Fool has one Disclosure Policy.