Looking to invest $5,000 in the stock market? Consider putting it into an ETF like Schwab U.S. Dividend Equity ETF (SCHD). With a 3.7% dividend yield, it outperforms the S&P 500’s 1.2% yield. Its expense ratio is just 0.06%, making it a low-cost option for long-term portfolio growth.
This ETF invests in around 100 stocks, including blue-chip companies like Verizon, PepsiCo, and Chevron. The Dow Jones U.S. Dividend 100 index it tracks prioritizes quality and sustainability in dividends. Despite lower returns in good times, it offers stability and security during market downturns.
While not a high-growth investment, SCHD provides a dependable option for long-term investors. In turbulent times, it outperformed the S&P 500, offering a negative 3% return compared to the index’s 18% loss. With a 2% return this year, it offers above-average dividends and minimal fees.
Consider the Motley Fool’s top 10 stock picks for potential monster returns. SCHD may not be on the list, but historical performance shows significant gains from other recommended stocks. Stock Advisor’s average return of 1,067% surpasses the S&P 500’s 189%. Join to access the latest top 10 list and potentially boost your investment returns.
Read more at Yahoo Finance: Got $5,000? This Dividend ETF Could Be a No-Brainer Buy
