Why I Purchased Schwab's U.S Dividend Equity ETF As A Dividend Growth Investment

I have been researching dividend ETFs for several years. If you have read any of those articles, you know that I found most of them to be inferior to purchasing individual stocks. Generally, their yields are poorer, their dividend growth is erratic, and they charge too much in fees.

But in my research for this article, I discovered that SCHD's approach came pretty close to what I do as a dividend growth investor. SCHD holds just 10 of the 19 stocks that I have in my DGP. Frankly, I thought that would have been higher, given the apparent similarities in our stock selection methods. But anyway, I will pick up exposure to about 80 new equities. Reasonable minds can differ whether that is good or bad. Right now, I see it as a good thing. I will begin to track go-forward comparisons between SCHD and my own portfolio beginning on May 1, 2015. Even though it has such a short history (less than 4 years), I anticipate that the fund will continue as a solid dividend growth choice, based on its charter.

Source: Seeking Alpha

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