This Schwab ETF Holds 100 Dividend Stocks, Charges 0.06% a Year, and Yields More Than Most Savings Accounts

Quick Read

• SCHD only holds companies with 10+ consecutive years of dividends and minimal debt.

• The ETF returned 15% year-to-date with a 0.06% expense ratio.

• March rebalancing will rotate into higher-yielding financial and healthcare sector stocks.

• A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings.  You also don’t want to live on the scant 0.6% from your average savings account.

Retirement should be about freedom and confidence, not anxiety.

One of the most effective ways to create that confidence is by owning income-focused ETFs designed to deliver consistent cash flow, diversification, and professional management. Instead of relying solely on selling shares to fund your lifestyle, these funds aim to turn your portfolio into a dependable income engine.

Collect 3.38% Every Quarter

One way to do that is by investing in a safe, high-yielding exchange-traded fund (ETF), like the Schwab U.S. Dividend Equity ETF (SCHD). With an expense ratio of 0.06%, the SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. At the moment, it also holds 101 dividend-paying stocks, including Bristol Myers Squibb, Merck, ConocoPhillips, Lockheed Martin, Chevron, Verizon, and Cisco, to name a few.

It also pays a quarterly dividend. In fact, it last paid out just over 27 cents a share on December 15. Before that, it paid out a dividend of just over 26 cents on September 29. And before that, it paid out a dividend of just over 26 cents per share on June 30.

The ETF is also up about 15% since the start of the year after a lackluster 2025.

Even better, to even be considered for the SCHD ETF, companies must have a minimum of 10 consecutive years of dividend payouts. It must have a market cap of at least $500 million, and an average three-month trading volume of $2 million per day. In short, the ETF won’t accept any slouches. The ETF also likes stocks that have no real debt as an added layer of stability.

The SCHD ETF will rebalance in March 

In just weeks, the SCHD ETF will also undergo its annual rebalancing. This time around, it’s again expected to rotate out of stocks with compressed yields and into stocks with higher yields, which should include stocks in the financial and healthcare sectors.

We should also note that SCHD has proven to be a reliable investment for those seeking income, stability, and long-term growth potential. For investors who want to replace unreliable savings-account interest with a consistent quarterly paycheck — without taking on excessive risk — SCHD offers a strong alternative. Owning a high-quality dividend ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security.

Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

And no, it’s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It’s much more straightforward (and powerful) than any of that. Frankly, it’s shocking more people don’t adopt the habit given how easy it is.