The Schwab U.S. Dividend Equity ETF (SCHD 1.26%) is one of the most popular dividend exchange-traded funds (ETFs) you can buy. But this fairly complicated product can also help investors who prefer to buy individual stocks, which is a function of the screening process used.
Targeting well-run companies that have high yields, the Schwab U.S. Dividend Equity ETF’s recent rebalancing suggests that energy stocks could be a place for dividend investors to focus on today. Here are three top options from the ETF’s portfolio.
What does the Schwab U.S. Dividend Equity ETF do?
The 100 stocks within the Schwab U.S. Dividend Equity ETF go through a fairly strict screening process. First, only companies that have increased their dividends for at least 10 consecutive years are looked at. (Real estate investment trusts are removed from consideration.) Then a…