Where Will SCHD Stock Be in 5 Years?
Dividends have been key to long-term stock market returns.
Overview
With a total return of 57% over the last three years, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has been a boon for income-focused investors who value stability and diversification. Those who already own the fund should probably hold on to it for those two reasons.
That said, no investment exists in a vacuum. And potential new investors have a lot of other options to choose from. Let's dig deeper into the pros and cons of SCHD to decide what the next five years might have in store.
Details
According to research from S&P Global, dividends accounted for a whopping 31% of the S&P 500's total return since 1926, making them a vital part of any long-term investment strategy. This might sound surprising considering blue chip stock yields tend to be relatively small. But these payouts benefit from compounding as they are reinvested into more shares that continue growing and paying more dividends.
Source
Originally published at www.fool.com.