The Dividend ETF Built for Whatever the Market Does Next

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Data source: Slickcharts.com. Returns bespeak reinvested dividends.
*Year to date, arsenic of May 28, 2026

See? Except for 2022, the S&P 500 has notched double-digit gains successful six of the past 7 years -- galore supra 20% -- and it's successful double-digit territory for 2026, too. Given each that, it's tenable to not beryllium amazed if there's a pullback this twelvemonth oregon next.

So however mightiness you put if you expect a pullback? Well, 1 strategy is to absorption connected steadfast dividend-paying stocks -- due to the fact that steadfast dividend payers thin to support paying done economical booms and busts. And dividend payers thin to beryllium larger, established companies with comparatively dependable income. In different words, they're little apt to beryllium high-flying maturation stocks that whitethorn autumn particularly hard successful a marketplace clang oregon correction.

Meet the Schwab U.S. Dividend Equity ETF

When it comes to investing successful a clump of dividend payers, it's hard to bushed the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) -- which is simply a dividend-focused exchange-traded money (ETF).

The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which comprises astir 100 cautiously selected stocks with way records of paying dividends for astatine slightest 10 years -- and that besides look to beryllium financially beardown companies. Here's however the ETF has performed successful caller years:

Data source: Morningstar.com, arsenic of May 27, 2026.
*from the earliest disposable date