Top ETF Boosts Portfolio with High-Yield Dividend Stocks
The Schwab U.S. Dividend Equity ETF completed its annual reshuffle. The move raised the fund’s allocation to healthcare stocks.
Annual reconstitution and headline changes
The ETF follows the Dow Jones U.S. Dividend 100 Index. That index screens names by yield, five-year dividend growth, and financial strength.
This year the index removed 22 holdings and added 25 new stocks. UnitedHealth and Abbott Laboratories were the largest additions.
New allocations and notable cuts
UnitedHealth joined the roster with about a 4% allocation. Abbott Labs was added with roughly a 3.95% weighting.
AbbVie was reduced after previously holding a 3.31% allocation. Merck and Amgen remain among the fund’s top ten holdings.
Portfolio weight and income metrics
Healthcare weight rose from 15.4% to 18.9% of the fund. It is now the ETF’s second-largest sector by allocation.
The fund’s overall yield remained roughly unchanged at about 3.4% after reconstitution. The new holdings increased the average five-year dividend growth rate.
Dividend growth and long-term outlook
The post-reconstitution holdings show a 9.4% average five-year dividend growth rate. That compares with 8.6% before the reshuffle.
Higher dividend growth could translate to stronger income over time. It may also help boost total returns for long-term holders.
Profiles of key healthcare names
AbbVie has continued to raise its payout since spinning off from Abbott in 2013. The company increased its dividend about 5.5% late last year.
AbbVie has expanded its dividend substantially since inception. Its track record includes steady annual increases since the spinoff.
Abbott Laboratories
Abbott recorded its 54th consecutive annual dividend increase last year. It is a member of the Dividend Kings group.
Abbott raised its payout about 6.8% last year. It has delivered strong multi-year dividend growth since the AbbVie spin-off.
UnitedHealth Group
UnitedHealth began paying dividends in 1990 and has increased payouts for 17 consecutive years. Its dividend rose about 5.5% last year.
The insurer has grown dividends roughly 52% over the last five years. It joined the ETF with a meaningful allocation during reconstitution.
Merck and Amgen
Merck has increased dividends for 16 straight years. Its five-year annualized dividend growth is near 5.8%.
Amgen has raised payments for 13 years. Its five-year annualized dividend growth is about 8.3%.
Fund trading snapshot and takeaway
The ETF recently traded near $30.63, with a intraday range around $30.58 to $30.73. Its 52-week span is roughly $23.87 to $31.95.
By shifting toward high-yield dividend stocks in healthcare, the Top ETF boosts portfolio resilience and income potential. Filmogaz.com will continue to track further changes and impacts.
