Need reliable investment income? Dividend stocks are your obvious choice.
Let's say you have some money in your pocket you want to invest, but you're not sure where to put it. Perhaps you're extra worried due to recent market volatility.
Occasionally, Wall Street reminds investors that stocks don't move higher in a straight line. Over the last three weeks and change, this message has been received, loud and clear.
Stock market sell-offs are often great opportunities to buy dividend stocks. That's because dividend yields move in the opposite direction of stock prices.
Everyone knows about the S&P 500 Index (^GSPC 2.13%), which is probably the most recognized market gauge in the world. But have you heard of the Dow Jones U.S. Dividend 100 Index?
These three funds have dipped significantly—creating a rare buying opportunity for income investors. Get exposure to a well-diversified and battle-tested portfolio that should pay out stable and growing income through all sorts of economic environments. Generate strong monthly income while positioning for long-term dividend growth and capital appreciation.
Volatility has returned, but SCHD has shown resilience, outperforming the S&P 500 with a high-yielding, fast-growing distribution. SCHD follows the Dow Jones U.S. Dividend 100 Index, focusing on high dividend-paying U.S. companies with strong financials and consistent payouts. SCHD's long-term performance and consistent dividend growth make it a stable investment, especially during market downturns.
This dividend combo of SCHD and SCHY provides a robust hedge against falling rates and a weakening dollar. Holdings in SCHD and SCHY are strategically positioned to capture yields that are now near historical peaks. SCHD and SCHY offer a double dose of hedging benefits, making them attractive for risk-averse investors.
The Schwab US Dividend Equity (SCHD) ETF stock has held steady this month even as the blue-chip indices like the Nasdaq 100 and S&P 500 crashed. The SCHD ETF stock was trading at $28.45 on Monday, up by about 6% from the lowest level this year.
Market volatility and uncertainty make defensive ETFs like Schwab U.S. Dividend Equity ETF attractive for stability and resilience. SCHD's low expense ratio and large-cap value stock composition make it cost-effective and less volatile compared to tech-heavy ETFs like SPY and QQQ. SCHD outperforms during market downturns, offering a 3.6% dividend yield and better downside protection, making it ideal for tactical allocation during uncertain times.
With volatility spiking and stock market indexes like the S&P 500 (^GSPC 0.55%) and Nasdaq Composite (^IXIC 0.70%) down on the year, investors may be looking for ways to diversify their portfolios and collect some passive income.
Popularity doesn't equate to suitability. Investors must learn to define their requirements and goals from their investments. A well-designed income strategy with active management can support financial security in retirement.