Schwab U.S. Dividend Equity ETF Should Be on Every Income Investor's Radar

There is a huge temptation for income-focused investors to buy the highest-yielding stocks in an effort to boost the cash they generate from their portfolios. Anyone who has done this likely knows that buying based on yield alone can end up with you buying poorly run companies and result in diminished returns through often painful dividend cuts.This helps make an exchange-traded fund (ETF) like Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) so interesting. Here's why this income-focused ETF should be on your radar today.The very first thing that Schwab U.S. Dividend Equity ETF does when creating its portfolio is to limit its pool of stocks to just those that have 10 or more annual dividend increases behind them. (Real estate investment trusts are excluded from consideration.) This is a fairly stiff bar that only strong and consistent business can surpass. And it sets the stage for an approach that deftly attempts to balance yield with company quality.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool