2 hours ago
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Matt Frankel, CFP, The Motley Fool
Mon, April 27, 2026 astatine 7:31 AM CDT 4 min read
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is an scale money that tracks the Dow Jones U.S. Dividend 100 Index. In elemental terms, the ETF owns shares of 100 companies that wage above-average dividend yields and conscionable different criteria, specified arsenic having paid dividends for astatine slightest 10 consecutive years.
To enactment it mildly, the Schwab U.S. Dividend Equity ETF is 1 of the astir fashionable dividend-focused index funds. It has an fantabulous 3.4% dividend yield, a debased 0.06% disbursal ratio, and gives wide vulnerability to top-quality dividend stocks.
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However, astatine a existent terms of much than $31 per share, the ETF is trading wrong striking region of its 52-week precocious and is up by much than 20% implicit the past year. So, galore investors are astir apt asking themselves, "Should I bargain now, oregon hold for a amended price?"
First, conscionable due to the fact that a banal oregon ETF has gone up doesn't needfully mean it's "expensive." In fact, immoderate of its apical holdings commercialized astatine price-to-earnings multiples acold beneath the S&P 500 average.
Second, the Schwab U.S. Dividend Equity ETF is simply a top-quality scale money with a portfolio of rock-solid companies and is apt to present beardown returns implicit the agelong term, careless of the terms you wage for shares. Top holdings see Texas Instruments (NASDAQ: TXN), Chevron (NYSE: CVX), Coca-Cola (NYSE: KO), and Home Depot (NYSE: HD), among others. The ETF is apt ot present beardown returns and make a increasing income watercourse implicit time.
Of course, it would surely beryllium preferable to bargain the Schwab U.S. Dividend Equity ETF astatine a little stock price. But cipher knows if oregon adjacent erstwhile that could happen. One of the astir invaluable lessons a semipermanent capitalist tin larn is that trying to clip the marketplace seldom works out. It's communal for investors to hold for a "better price," lone to spot the concern they privation to ain support rising.
One strategy is to bargain shares incrementally implicit clip alternatively of each astatine once, a conception known arsenic dollar-cost averaging. As a elemental example, alternatively of investing $5,000 successful the ETF each astatine once, possibly perpetrate to buying $1,000 worthy of shares each period for the adjacent 5 months. This way, you're putting immoderate of your wealth to enactment close away. If the stock terms ends up falling, you'll bargain much shares astatine a little price. If it doesn't, you'll inactive beryllium gathering a presumption successful a top-quality scale money successful your portfolio.
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