SCHD's Top Sector Bet Is Healthcare at 20.7%. I'm Not Sure What's More Surprising: What It Doesn't Hold, or What It Does.
SHCD is missing some of the healthiest dividend stocks.
Overview
The Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) holds 100 of the highest-quality, high-yielding dividend stocks. The ETF currently has a 20.7% allocation to healthcare stocks, its top sector weighting. What's surprising is that two of the seemingly highest quality healthcare dividend stocks -- Johnson & Johnson (NYSE:JNJ) and Medtronic (NYSE:MDT) -- aren't among its holdings at all. Instead, its two largest healthcare stock holdings -- Merck (NYSE:MRK) and UnitedHealth (NYSE:UNH) -- are facing notable headwinds.
Here's why my surprise isn't making me concerned about the fund's ability to continue paying dividends.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.