Here's How Many Shares of SCHD You'd Need for $1,000 in Yearly Dividends

• The Charles Schwab U.S. Dividend Equity ETF's latest quarterly dividend was $0.2782.

• Companies indispensable conscionable fiscal criteria to beryllium included successful SCHD.

• SCHD has averaged a 3.6% dividend output implicit the past 3 years.

• 10 stocks we similar amended than Schwab U.S. Dividend Equity ETF ›

There are plentifulness of exchange-traded funds (ETFs) that absorption connected dividends, but 1 of the amended go-to options is the Charles Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). It holds 102 stocks and has been a staple for galore investors since it deed the marketplace successful October 2011.

SCHD's past 4 per-share dividend payouts were $0.2782, $0.2604, $0.2602, and $0.2488. The payouts fluctuate due to the fact that dividend companies wage their dividends astatine antithetic times, but if the full $1.0476 per stock payout implicit the past twelvemonth were to stay constant, you would request to ain 955 shares of SCHD to person $1,000 annually. As of marketplace closing connected Dec. 11, Charles Schwab U.S. Dividend Equity ETF was priced astatine $27.68 per share, which means it would outgo astir $26,435 to execute this if you were starting from scratch.

To beryllium included successful SCHD, a institution indispensable person 10 consecutive years of dividend increases and a steadfast equilibrium sheet. This ensures companies aren't included solely due to the fact that they person a precocious dividend yield, helping to debar output traps. SCHD's apical 3 holdings are Cisco (4.75% of the ETF), Merck & Co. (4.65%), and Amgen (4.45%).

This ETF's existent dividend output is 3.8%, much than 3 times the S&P 500 average. This dividend output volition inevitably fluctuate arsenic Charles Schwab U.S. Dividend Equity ETF's banal terms changes, but it's conscionable supra the 3.6% dividend output that SCHD has averaged implicit the past 3 years. If you're looking for a dividend ETF that tin beryllium a staple successful your portfolio, Charles Schwab U.S. Dividend Equity ETF is surely it.

Before you bargain banal successful Schwab U.S. Dividend Equity ETF, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Schwab U.S. Dividend Equity ETF wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $513,353!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,072,908!*