Schwab U.S. Dividend Equity ETF Offers 3.3% Yield as Motley Fool Flags Pullback Risk
Updated
Updated · The Motley Fool · May 30
Schwab U.S. Dividend Equity ETF Offers 3.3% Yield as Motley Fool Flags Pullback Risk
3 articles · Updated · The Motley Fool · May 30
SCHD was highlighted as a defensive option for a possible market pullback, with Motley Fool pointing to its mix of dividend income and exposure to financially strong U.S. companies.
A 3.3% recent yield and 12.87% average annual return over 10 years underpin that case, while the fund tracks about 100 stocks that have paid dividends for at least 10 years.
Its top 10 holdings recently made up about 44% of assets, giving investors concentrated exposure to large, established dividend payers rather than higher-volatility growth names.
The pullback warning rests partly on the S&P 500's extended run: double-digit gains in six of the past seven years and 11.01% year-to-date in 2026, alongside pressure from war, tariffs and oil-driven inflation.