The Dividend ETF That Belongs in Almost Every Long-Term Portfolio

Dividend stocks make ideal long-term investments. Ned Davis Research and Hartford Funds have found that since 1973, dividend stocks in the S&P 500 have delivered an average annual return of 9.2%, more than double the return of non-dividend-paying stocks (4.2%).

One of the easiest ways to invest in dividend stocks is through an exchange-traded fund (ETF). Here's why the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) belongs in almost any investor's long-term portfolio.

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The Schwab U.S. Dividend Equity ETF's goal is to track the Dow Jones U.S. Dividend 100 Index. That index measures the performance of about 100 high-yielding U.S. stocks with a consistent dividend record. It selects them based on several quality characteristics, including dividend yield, five-year dividend growth rate, and strong financial metrics.

The index reconstitutes its holdings once a year to emphasize higher quality holdings. It will add

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/dividend-etf-belongs-almost-every-135000531.html)