Should You Buy the Schwab US Dividend Equity ETF Instead of Picking Individual Stocks?

Key Takeaways:

• SCHD is a dividend-oriented exchange-traded fund that offers a simpler route to dividend investing.
• The fund aims to relieve investors from individual stock research and selection.
• This approach may suit investors who want professional oversight.
• The article highlights the convenience of relying on a single ETF rather than multiple stocks.
• Published by Fool on August 30, 2025, it caters to readers in the United States interested in business and investing.

Introduction

Should you buy the Schwab US Dividend Equity ETF (SCHD) or carefully select each dividend-paying stock in your portfolio? This question is at the core of an investing discussion aimed at individuals who want a reliable income stream without being overwhelmed by research and stock selection.

The Rise of Dividend-Focused Funds

Dividend investing remains one of the most popular strategies, giving shareholders periodic income. Traditionally, this requires scrutinizing each potential company’s financials, dividend history, and future outlook. With SCHD, investors gain access to a professionally managed basket of dividend-paying stocks without having to analyze them individually.

Why Consider SCHD

Investors who opt for this ETF can benefit from a built-in vetting process. According to the original article, “If you are a dividend investor, you can buy this exchange-traded fund and let someone else do all the hard work of stock picking for you.” This hands-off approach may appeal to those who prefer to entrust the selection to experts rather than spend hours researching and monitoring individual companies.

Comparing Individual Stock Selection with SCHD

Picking one’s own stocks offers a personalized portfolio and the possibility of uncovering hidden gems. However, it also demands significant research, attention to corporate developments, and ongoing adjustments. By contrast, an ETF like SCHD handles diversification and continuous updates under the guidance of fund managers. For many, this can be the simpler path, especially for those looking to maintain a dividend income stream without dedicating extensive time to portfolio oversight.

Conclusion

When it comes to dividend investing, the key question is how deeply involved you want to be in market research and decision-making. SCHD provides a one-stop option that removes much of the work from the process. While each investor’s circumstances differ, the Schwab US Dividend Equity ETF can be an appealing choice for those seeking a streamlined approach to building a dividend-driven portfolio.