I’m tempted to suggest a high-growth exchange-traded fund (ETF) here, but instead I want to offer a top-flight dividend-oriented ETF. Why? Well, I’m considering that the world — and our economy — is a little less steady than usual these days, with a war afoot and tariffs and trade wars, too. On top of that, the stock market has delivered double-digit gains in six of the past seven full years (2019-2025). It could be smart to be a defensive investor.
So dividends. Healthy and growing dividend-paying stocks offer the potential for stock-price appreciation, just like any stock. And on top of that, they deliver regular income — which tends to grow over time via dividend increases. It’s a compelling proposition in any kind of economy, really.
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Meet the Schwab U.S. Dividend Equity ETF
Consider the Schwab U.S. Dividend Equity ETF (SCHD 0.07%). Here’s how…