A Dividend ETF With a Quality Bias

“Despite its newness, I feel fairly confident that SCHD is likely to deliver annual dividend increases of the regularity and magnitude that dividend growth investors are accustomed to. I base this on SCHD’s makeup, index methodology, and low expense ratio,” adds Van Knapp.

In addition to Coca-Cola and P&G, two of the stocks with the largest dividend increase streaks in the U.S., SCHD features exposure to Johnson & Johnson (NYSE: JNJ), another dividend increase streak titan, along with Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX). The two largest U.S. oil companies have payout increase streaks that, on average, are approaching three decades.

And SCHD can be traded commission-free on the Schwab ETF OneSource platform.

Schwab US Dividend Equity ETF

Tom Lydon’s clients own shares of SCHD.