The Smartest High-Yield Dividend ETF to Buy With $500 Right Now
The S 500 index is near the highest levels in its history, pushing the index's dividend yield down to a paltry 1.2% or so. By contrast, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has a roughly 3.4% yield, making it a relatively attractive income option. But the really interesting part about this exchange-traded fund (ETF) is how it gets that yield.
Here is why this could be the smartest ETF to buy if you have $500 (or more) to invest right now.
If you are a student of Wall Street history, you know that stocks can be very volatile at times. Often the worst downdrafts start from periods of extreme enthusiasm. Times when the stock market is hovering near record levels. That's pretty much the story of the market today, with the S&P 500 index at lofty levels and the index's dividend yield at historically low levels.
Source Fool.com
