The Best High-Yield Dividend ETF to Invest $2,000 in Right Now
Wednesday, Dec 25, 2024 6:16 pm ET
1min read When it comes to investing in dividend stocks, exchange-traded funds (ETFs) offer a convenient and diversified way to gain exposure to a basket of dividend-paying companies. For investors looking to generate high income and long-term growth, high-yield dividend ETFs are an attractive option. In this article, we will explore the top high-yield dividend ETF to invest $2,000 in right now.
One of the standout high-yield dividend ETFs is the Schwab U.S. Dividend Equity ETF (SCHD). With a dividend yield of 3.7% as of December 11, 2024, SCHD offers one of the highest yields among high-yield dividend ETFs. This yield is significantly higher than the average yield of the top 100 dividend ETFs listed on ETFdb.com, which is around 2.5%. Additionally, SCHD has a low expense ratio of 0.06%, maximizing your overall return on investment.
SCHD focuses on U.S. companies with a record of consistent dividend growth, providing a balance between income and growth. Its portfolio is well-diversified, with over 100 holdings, and focuses on sectors such as financials (22.5%), technology (15.5%), and healthcare (13.5%). This diversification aligns with a moderate risk tolerance and long-term growth goals, making it an ideal choice for a $2,000 investment.
Historically, SCHD has shown impressive performance in terms of total returns and dividend growth. Its long record of dividend growth in most years, combined with its low expense ratio, makes it an attractive option for investors seeking high income and long-term growth.
In conclusion, the Schwab U.S. Dividend Equity ETF (SCHD) is an excellent choice for investors looking to invest $2,000 in a high-yield dividend ETF right now. Its high dividend yield, low expense ratio, and strong track record of dividend growth make it an attractive option for generating high income and long-term growth. However, it's crucial to consider your investment goals and risk tolerance when selecting an ETF. Diversification and careful consideration of your financial objectives are key to successful investing.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
