1 No-Brainer High-Yield Dividend ETF to Buy During the Stock Market Correction
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. So, with the stock market recently correcting (defined as a decline of 10% or more from the peak), dividend yields are now higher.One of the easiest ways to capitalize on this opportunity is to buy the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). The fund holds 100 of the top high-yielding dividend stocks. With its value falling with the market and its yield on the rise, it's a no-brainer dividend exchange-traded fund (ETF) to buy right now. The Schwab U.S. Dividend Equity ETF strives to track the performance of the Dow Jones U.S. Dividend 100 Index, which aims to measure the returns of stocks with consistent records of paying higher-yielding dividends backed by stronger financial metrics than their peers. Like that index, the ETF holds about 100 stocks. However, its top 10 holdings comprise more than 40% of its assets. That group is like a who's who of top-tier dividend stocks.Continue reading
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. So, with the stock market recently correcting (defined as a decline of 10% or more from the peak), dividend yields are now higher.
One of the easiest ways to capitalize on this opportunity is to buy the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). The fund holds 100 of the top high-yielding dividend stocks. With its value falling with the market and its yield on the rise, it's a no-brainer dividend exchange-traded fund (ETF) to buy right now.
The Schwab U.S. Dividend Equity ETF strives to track the performance of the Dow Jones U.S. Dividend 100 Index, which aims to measure the returns of stocks with consistent records of paying higher-yielding dividends backed by stronger financial metrics than their peers. Like that index, the ETF holds about 100 stocks. However, its top 10 holdings comprise more than 40% of its assets. That group is like a who's who of top-tier dividend stocks.
