The $100 Investment That Could Change Everything
Key Points
This ETF offers a hefty dividend yield.
It's a solid long-term grower, too.
Those dividend payments can be reinvested, turbocharging your portfolio's growth.
- 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›
Maybe you've been thinking you really should start investing in stocks. Maybe, though, you're kind of scared to jump into the market, as you're far from an investing expert.
Those are all reasonable thoughts. However, you probably should just jump into the stock market pretty soon -- perhaps after you read up on it a little more, so that you're comfortable doing so.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
You can jump in with just $100, too, if that will serve as a handy jump-start for your investing life. Once you're ready, a great way to start is with a simple index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Image source: Getty Images.
I'd also like to suggest this exchange-traded fund (ETF): The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). (An ETF is a fund that trades like a stock, by the way.) It's a compelling investment because it features a nice mix of growth and dividend income, and its dividend yield was recently a solid 3.9%. Recently priced at $27 per share, you can buy a few shares with $100.
|
ETF |
Recent Yield |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
|---|---|---|---|
|
Schwab U.S. Dividend Equity ETF |
3.9% |
9.01% |
11.02% |
|
Vanguard S&P 500 ETF |
1.1% |
14.59% |
14.02% |
Source: Morningstar.com, as of November 20, 2025.
You may well earn a higher average annual return with an S&P 500 index fund, but you won't be receiving much dividend income from it -- and that dividend income can be kind of important. During economic slumps, your stocks and funds may stall or retract a bit, but healthy dividend-paying stocks will likely keep delivering their payouts. That money can be reinvested into more shares of stock, which could deliver more dividends of their own.
The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 index, which encompasses about 100 companies with track records of paying dividends for at least 10 years and is made up of high-quality companies. Its top holdings recently included Amgen, Cisco Systems, and AbbVie.
Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now?
Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:
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*Stock Advisor returns as of November 24, 2025
Selena Maranjian has positions in AbbVie, Amgen, and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends AbbVie, Amgen, Cisco Systems, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
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