1 ETF That Could Turn $100 Per Month Into $67,380
Key Points
This exchange-traded fund (ETF) is focused on healthy, dividend-paying stocks.
It has averaged annual gains of more than 13% over the past decade.
- 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›
I'm tempted to suggest a high-growth exchange-traded fund (ETF) here, but instead I want to offer a top-flight dividend-oriented ETF. Why? Well, I'm considering that the world -- and our economy -- is a little less steady than usual these days, with a war afoot and tariffs and trade wars, too. On top of that, the stock market has delivered double-digit gains in six of the past seven full years (2019-2025). It could be smart to be a defensive investor.
So dividends. Healthy and growing dividend-paying stocks offer the potential for stock-price appreciation, just like any stock. And on top of that, they deliver regular income -- which tends to grow over time via dividend increases. It's a compelling proposition in any kind of economy, really.
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Meet the Schwab U.S. Dividend Equity ETF
Consider the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). Here's how it has performed in recent years:
|
Period |
Average annual gain |
|---|---|
|
Past 1 year |
15.67% |
|
Past 3 years |
12.66% |
|
Past 5 years |
11.03% |
|
Past 10 years |
13.37% |
|
Since inception (10/20/2011) |
13.30% |
Source: SchwabAssetManagement.com, as of Feb. 28, 2026.
Clearly, it's a strong performer -- and it's also a solid dividend payer, recently yielding 3.3%. Most funds tend to deliver either strong returns or strong dividend income. This one offers both.
If you invested $1,200 annually ($100 per month) in it, and you earned an annual return of, say, 10%, you'd end up with around $68,730 in 20 years.
So what's in this ETF? Here are the top 10 holdings as of March 13:
|
Stock |
Weight in ETF |
Recent yield |
|---|---|---|
|
Lockheed Martin |
4.94% |
2.1% |
|
ConocoPhillips |
4.74% |
2.8% |
|
Chevron |
4.70% |
3.6% |
|
Verizon Communications |
4.50% |
5.6% |
|
Altria Group |
4.19% |
6.3% |
|
Bristol Myers Squibb |
4.18% |
4.3% |
|
Merck |
4.19% |
2.9% |
|
Coca-Cola |
3.96% |
2.7% |
|
PepsiCo |
3.88% |
3.6% |
|
Amgen |
3.85% |
2.7% |
Source: SchwabAssetManagement.com and Yahoo! Finance, as of May 8, 2025.
The ETF holds roughly 100 stocks, many of them blue chips. Invest in the ETF now and you'll own those same stocks -- and can expect significant dividend income.
Should you buy stock 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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Selena Maranjian has positions in Altria Group, Amgen, Bristol Myers Squibb, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Amgen, Bristol Myers Squibb, Chevron, and Merck. The Motley Fool recommends ConocoPhillips, Lockheed Martin, and Verizon Communications. The Motley Fool has a disclosure policy.
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