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SCHD - Government Trades

Schwab US Dividend Equity ETF

Industrials

Healthcare

Financial Services

Technology

Consumer Defensive

Consumer Cyclical

Energy

Communication Services

Basic Materials

Utilities

Other

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Dividend 100 Index. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles. It is modified market capitalization weighted.

Home Depot Inc/The

Abbvie Inc.

Cisco Systems, Inc.

Amgen Inc.

Chevron Corporation

Lockheed Martin Corp

Blackrock Inc.

Verizon Communications Inc Common Stock Usd 0.1

Coca Cola Co.

United Parcel Service Inc Class B

BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is selling $2.5 billion in U.S. investment-grade bonds to help pay for its <a href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data">$3.2 billion acquisition</a> of private-markets data company Preqin.
What Happened: According <a href="https://www.bloomberg.com/news/articles/2024-07-17/blackrock-taps-blue-chip-bond-market-to-fund-preqin-purchase?srnd=markets-vp&amp;sref=TBDibEcD">to</a> Bloomberg, citing an anonymous source, BlackRock Funding plans to sell the notes in three tranches.
The longest part of the deal matures in 30 years. It expects to yield one percentage point above Treasuries.
BlackRock did not immediately respond to Benzinga&#8217;s request for comment on the reported transaction.
BlackRock agreed to acquire London-based Preqin as part of an effort to grow its presence in private-markets investing. In January, the firm spent $12.5 billion to take over Global Infrastructure Partners.
Also Read: <a href="https://feeds2.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Private markets are rapidly growing and expected to reach nearly $40 trillion by decade's end. This sector's data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) are leading the bond sale.
The three-year portion of the notes offering comes with a special mandatory redemption clause, which means BlackRock will buy back the notes at 101% if the Preqin deal fails to close by Sept. 2, 2025.
Price Action: BlackRock dipped 0.54% to $839.40 by late-afternoon trading on Wednesday, while exchange-traded funds that hold the stock rose and fell.
Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) lost 0.35% as Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) gained 1.32% and The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) slipped 3.1%. Madison Dividend Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVL#NYSE">DIVL</a>) edged up 0.92% and Copper Place Global Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDVD#NYSE">GDVD</a>) rose 0.52%.GDVD
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/39791571/blackrock-analysts-raise-their-forecasts-following-upbeat-earnings">BlackRock Analysts Raise Their Forecasts Following Upbeat Earnings</a></li>
</ul>

Bonds

Financing

ETFs

DIVL

FDFF

GDVD

NITE

SCHD

BlackRock Sells $2.5B In Bonds To Help Fund Preqin Deal: Report

Investment giant&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) shares are trading higher after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39767432/blackrock-reports-second-quarter-2024-earnings" rel="noreferrer noopener">second-quarter&nbsp;FY24 results</a>.
Revenue growth of 8%&nbsp;Y/Y to&nbsp;$4.805 billion, missing the consensus of&nbsp;$4.849 billion.&nbsp;
Investment advisory, administration fees, and securities lending revenues increased to&nbsp;$3.875 billion&nbsp;from&nbsp;$3.611 billion&nbsp;a year ago, led by positive organic base fee growth and the impact of market beta on average AUM.
Technology services revenue increased to&nbsp;$395 million&nbsp;from&nbsp;$359 million&nbsp;the prior year, reflecting continued demand for Aladdin technology offerings.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data" rel="noreferrer noopener">BlackRock&#8217;s Aladdin Gets Smarter: $3.2B Deal Adds Preqin&#8217;s Private Markets Data</a>
BLK stated that the net inflow stood at&nbsp;$82 billion&nbsp;in the quarter, resulting in a 3% organic base fee growth.
Laurence D. Fink, Chairman, and CEO said, &#8220;Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39068825/blackrocks-bitcoin-etf-dominates-market-with-nearly-20b-in-assets-report" rel="noreferrer noopener">BlackRock&#8217;s Bitcoin ETF Dominates Market with Nearly $20B in Assets: Report</a>
Adjusted operating income rose&nbsp;12%&nbsp;Y/Y to&nbsp;$1.88 billion, with the margin expanding to&nbsp;44.1%&nbsp;from&nbsp;42.5%&nbsp;a year ago.
Adjusted EPS increased&nbsp;12%&nbsp;Y/Y to&nbsp;$10.36,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$9.93.</a>
Total AUM stood at&nbsp;$10.6 trillion in AUM, up $1.2 trillion year-over-year, driven by consistent organic growth and positive market movements.
BLK&#8217;s Board of Directors paid a quarterly cash dividend per share of&nbsp;$5.10&nbsp;and repurchased shares worth&nbsp;$500 million&nbsp;in the quarter.&nbsp;
Fink added, &#8220;We are on pace to close our planned acquisition of Global Infrastructure Partners in the third quarter of 2024, which is expected to double private markets base fees and add approximately $100 billion of infrastructure AUM. And just a few weeks ago, we announced our agreement to acquire Preqin, a leading private markets data provider.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv" rel="noreferrer noopener">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Investors can gain exposure to the stock via&nbsp;Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and&nbsp;Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: BLK shares are up 0.60% at $832.90 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by rafapress on Shutterstock

Earnings

Equities

Large Cap

News

Movers

BlackRock Q2 Earnings: ETF Boom, Record Inflows And Private Market Drive Growth

Launched on 05/22/2000, the iShares Russell 1000 Value ETF (ARCA:IWD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $55.66 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.19%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 23% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B&nbsp;accounts for about 3.54% of total assets, followed by JPMorgan Chase &amp; Co&nbsp;and Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>).
The top 10 holdings account for about 17.89% of total assets under management.
Performance and Risk
IWD seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market.
The ETF has added about 6.18% so far this year and is up about 13.62% in the last one year (as of 07/09/2024). In the past 52-week period, it has traded between $143.69 and $179.11.
The ETF has a beta of 0.95 and standard deviation of 15.18% for the trailing three-year period, making it a medium risk choice in the space. With about 851 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWD is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $54.39 billion in assets, Vanguard Value ETF has $115.94 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2298260/should-ishares-russell-1000-value-etf-iwd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2298260">To read this article on Zacks.com click here.</a>

Sector ETFs

Markets

Analyst Ratings

Trading Ideas

Should iShares Russell 1000 Value ETF Be on Your Investing Radar?

Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>) shares are trading lower today. The stock pulled back after soaring higher yesterday due to news of Robert Bosch GmbH reportedly <a target="_blank" href="https://www.benzinga.com/m-a/24/06/39502758/home-appliances-giant-whirlpool-stock-is-soaring-on-wednesday-heres-why" rel="noreferrer noopener">considering a bid for the company</a>.
Goldman Sachs analyst Susan Maklari rated the stock <a target="_blank" href="https://www.benzinga.com/quote/WHR/analyst-ratings" rel="noreferrer noopener">as Buy and price target of $118</a>.
The analyst writes that while Robert Bosch holds a 6% share in the global major appliance market, its presence in North America is significantly smaller at 1.5%, while Whirlpool leads with approximately 25% market share in North America and 10% globally based on 2023 volumes.
Maklari says that a potential deal would enable Bosch to enhance its competitive position both globally and regionally.
This development coincides with European companies&#8217; increasing interest in expanding into the US building products industry to mitigate challenges in their local economies, writes the analyst.
However, the analyst expects regulatory hurdles to be anticipated due to current geopolitical dynamics.
The analyst notes that the company&#8217;s revenues and adjusted EBITDA decreased by 12% and 46%, respectively, from 2021 to 2023, which weighs on the valuation.
Whirlpool stock has lost over 32% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>)&nbsp;and&nbsp;the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares are down 1.95% at $99.92 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Price Target

Reiteration

Bosch Bid Hype Fades, But Analyst Sees Whirlpool's Potential

Robert Bosch GmbH is reportedly considering a bid for U.S. appliance manufacturer Whirlpool Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>), according to three individuals familiar with the situation.
If successful, this acquisition would enhance Bosch&#8217;s presence in the white goods market, Reuters reports.
Whirlpool stock soared Wednesday on the news.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/36020529/strategic-divestiture-whirlpool-to-partially-reduce-ownership-in-indian-subsidiary-in-2024" rel="noreferrer noopener">Strategic Divestiture: Whirlpool To Partially Reduce Ownership In Indian Subsidiary In 2024</a>
Bosch has been consulting with potential advisers regarding a possible offer for Whirlpool, which currently holds a market capitalization of approximately $4.8 billion.
Whirlpool has undergone significant restructuring recently, including merging its European operations into a new entity controlled by Turkish competitor Arçelik and selling off its Middle Eastern and African businesses.
The acquisition of Whirlpool, one of the largest global white goods producers, would significantly bolster Bosch&#8217;s home appliance division. This move is seen as a strategic effort to enhance market position and compete more effectively against growing Asian market players.
Whirlpool stock has lost over 39% in the last 12 months. Investors can gain exposure to the stock via the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares traded higher by 17.50% at $102.24 at the last check on Wednesday.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/08/34038695/burned-by-delay-whirlpool-settles-for-millions-over-hazardous-cooktops" rel="noreferrer noopener">Burned By Delay: Whirlpool Settles For Millions Over Hazardous Cooktops</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Media

Home Appliances Giant Whirlpool Stock Is Soaring On Wednesday - Here's Why

China has reportedly imposed sanctions on several subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) in response to <a target="_blank" href="https://www.benzinga.com/topic/taiwan" rel="noreferrer noopener">U.S. arms sales to Taiwan</a>.
The sanctions include freezing the assets of Lockheed Martin&#8217;s senior executives, including Chairman James Donald Taiclet, and banning their entry into China, reported Reuters.
China&#8217;s foreign ministry announced that the sanctions target Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures, per the report.
Beijing has repeatedly urged the U.S. to cease its arms sales to Taiwan, a self-governed island that China claims as its own.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39429701/us-and-china-confront-taiwan-issue-in-first-informal-nuclear-talks-in-5-years-report" rel="noreferrer noopener">US And China Confront Taiwan Issue In First Informal Nuclear Talks In 5 Years: Report</a>
This latest round of sanctions is part of a broader effort by China to counter foreign actions against it, especially those related to Taiwan. China&#8217;s sanctions law, enacted in 2021, aims to provide legal grounds for retaliatory measures.
This is not the first time China has sanctioned U.S. defense contractors for their dealings with Taiwan. In <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34609264/china-sanctions-lockheed-martin-and-northrop-grumman-concerning-arms-sales-to-taiwan-report" rel="noreferrer noopener">September last year</a>, China sanctioned Lockheed Martin and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>).
Prior to that, Lockheed Martin and RTX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) Raytheon faced sanctions in 2019, 2020, 2022, and 2023, with the 2022 sanctions being the first under China&#8217;s anti-foreign sanctions law.
Earlier in May, the Biden administration imposed new tariffs on Chinese imports, targeting sectors such as <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/05/38813115/biden-targets-chinese-imports-with-huge-tariff-hikes-ahead-of-election" rel="noreferrer noopener">electric vehicles, batteries, and semiconductors</a>.&nbsp;
Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: LMT shares are trading higher by 0.23% at $467.43 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38913623/boeing-trades-nearly-1-lower-as-china-imposes-symbolic-sanctions-on-airplane-maker-and-other-us-" target="_blank" rel="noreferrer noopener">Boeing Trades Nearly 1% Lower as China Imposes Symbolic Sanctions On Airplane Maker And Other US Defense Firms Over Taiwan Arms Sales</a>
Photo Courtesy: AlmostViralDesign On Shutterstock.com

General

iShares Dow Jones US Aerospace & Defense Index Fund

China Sanctions Lockheed Martin Subsidiaries, Executives Over Taiwan Arms Sales: Report

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is reportedly planning additional job cuts across its operations in Germany, <a target="_blank" href="https://www.benzinga.com/quote/F" rel="noreferrer noopener">Spain, and the U.K.</a>
This development is part of a broader strategy to streamline its workforce in Europe, particularly as the company shifts its focus towards electric vehicle (EV) production.
According to Benjamin Gruschka, the head of the workers&#8217; council at Ford&#8217;s Cologne plant, the specifics of the job cuts in Germany remain unclear but are expected to be defined by the end of June, reported Reuters.
The decision comes in addition to a previous restructuring initiative.
Ford has already implemented significant workforce reductions, having completed half of its planned 2,300 job cuts in Germany, reducing its staff to 13,000.
Also Read: <a target="_blank" href="https://www.benzinga.com/top-stories/24/06/39321797/ford-to-allow-all-us-dealers-to-sell-electric-vehicles-scraps-model-e-program" rel="noreferrer noopener">Ford To Allow All US Dealers To Sell Electric Vehicles, Scraps Model E Program</a>
Ford recently announced plans to cut up to 1,600 jobs at its Valencia plant as part of ongoing adjustments to optimize<a target="_blank" href="https://www.benzinga.com/news/24/06/39315574/whats-happening-with-fords-shares-on-thursday" rel="noreferrer noopener"> its production capacity and efficiency.</a>
Last year, Ford disclosed plans to eliminate 3,800 jobs across Europe due to the operational needs of EV production, which typically requires fewer personnel compared to <a target="_blank" href="https://www.benzinga.com/news/23/02/30893180/ford-plans-to-cut-3-800-jobs-in-europe" rel="noreferrer noopener">traditional car manufacturing.</a>
This move reflects Ford&#8217;s strategic pivot toward sustainable automotive solutions and aligns with industry-wide trends toward electric mobility.
&nbsp;Ford sold a total of 8,966 EVs in the U.S. in May, marking a near 65% jump <a target="_blank" href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom" rel="noreferrer noopener">from 2023 when it sold just 5,444 units.</a>
For 2024, Ford expects its EV division to post an EBIT loss between $5.5 billion and $5 billion, wider than the <a target="_blank" href="https://www.benzinga.com/news/24/06/39159541/really-an-incredible-person-jim-farley-says-theres-respectful-rivalry-with-tesla-ceo-elon-musk-outli" rel="noreferrer noopener">$4.7 billion loss recorded in 2023.</a>
Ford stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ET (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: F shares are trading lower by 0.34% at $11.80 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

VLUE

Ford Plans Further Job Reductions in Germany, Spain, And UK: Report

Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are <a href="https://www.benzinga.com/topic/automotive">ticking lower on Thursday</a>.
The auto company announced further job cuts at its Valencia, Spain, assembly plant, totaling up to 1,600 positions, following a previous reduction of 1,100 staff last year.
The decision reflects ongoing adjustments in Ford&#8217;s European operations, reported Reuters.
The automaker, which currently employs about 4,700 workers at the Valencia facility, communicated to unions that 600 jobs would be cut permanently.
However, discussions are ongoing about potentially rehiring 1,000 workers in the future, as Ford plans to ramp up production with a new vehicle launch slated for 2027. 
Negotiations may lead to a temporary arrangement for the 1,000 workers affected, bridging the period until the new vehicle&#8217;s production begins.
Also Read: <a href="https://www.benzinga.com/news/24/06/39137548/whats-happening-with-fords-shares-today">Ford plans Level 3 autonomous driving By 2026</a>
The Valencia plant is set to start manufacturing a new hybrid passenger car aimed at the European and other markets starting in 2027, with an <a href="https://www.benzinga.com/news/24/05/38759934/ford-to-increase-production-at-valencia-plant-with-new-model">expected annual output of 300,000 unit</a>s.
Ford&#8217;s Valencia plant, located in the Almussafes district, currently produces the Kuga compact sports utility vehicle, having phased out other models in recent years. 
The plant's transition to new model production represents a significant strategic shift for Ford in Europe, focusing on hybrid technology to align with evolving market demands and regulatory standards.
These job cuts mark the second major workforce reduction at the Valencia facility within two years.
Ford stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: Ford shares are trading lower by 1.57% at $11.89 at last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom">Ford Again Defies Elon Musk&#8217;s &#8216;Tough Quarter&#8217; Gloom As EV Sales Keep Surging After Q1 Boom</a>

Movers & Shakers

What's Happening With Ford's Shares On Thursday?

Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are ticking higher <a href="https://www.benzinga.com/topic/ford">after the automaker</a> said its technology will enable drivers to take their eyes off the road and their hands off the wheel within the next two years.
"We're getting really close," said CEO Jim Farley in an interview with <a href="https://www.bloomberg.com/news/articles/2024-06-03/ford-ceo-in-two-years-drivers-won-t-have-to-watch-the-road?cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;utm_content=business&amp;utm_medium=social&amp;sref=TBDibEcD">Bloomberg</a>. &#8220;We can do it now pretty regularly with a prototype, but doing it in a cost-effective way is just the progress we're going to need to make.&#8221;
Farley is optimistic that Ford can achieve the milestone by 2026, potentially making it the first mass-market car brand to offer Level 3 autonomy. 
This level of autonomy allows the car to take over driving under certain conditions, enabling the driver to focus on other activities.
Currently, Ford and other automakers, including General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), offer hands-free driving features that use eye-tracking devices to ensure the driver remains attentive. 
Ford's system, BlueCruise, is <a href="https://www.benzinga.com/markets/equities/24/04/38493842/fords-bluecruise-under-nhtsa-lens-after-fatal-crashes-report">under investigation by U.S. safety regulators </a>after being involved in fatal crashes. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and others are also being scrutinized by federal authorities for crashes involving their semi-autonomous systems.
Also Read: <a href="https://www.benzinga.com/news/24/05/39081508/tesla-ford-hit-the-brakes-in-uk-as-warren-buffett-backed-byd-zooms-ahead-with-2500-jump-in-registrat">Tesla, Ford Hit The Brakes In UK As Warren Buffett-Backed BYD Zooms Ahead With 2500% Jump In Registrations</a>
Mercedes-Benz began offering an eyes-off-the-road feature in the U.S. late last year, but it only operates at speeds below 40 miles per hour on pre-approved freeways. 
Farley suggested Ford's system would operate at speeds of up to 80 miles per hour on highways, but only under clear skies. 
Ford aims to generate recurring revenue by offering subscription services to features such as BlueCruise. Farley sees these high-margin software services as a way to stabilize the cyclical nature of the car business. 
Ford is already selling software systems to its commercial customers to manage fleet logistics and sees semi-autonomous features as a means to attract individual retail customers to buy software subscriptions. 
Ford stock has lost more than 3% in the last 12 months. Investors can gain exposure to the stock via Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: F shares are trading higher by 0.74% at $12.22 at last check Monday.
Read Next: <a href="https://www.benzinga.com/news/24/05/39056264/ford-teases-f-150-lightning-based-supertruck-set-to-climb-pikes-peak-in-june">Ford Teases F-150 Lightning-Based Supertruck Set To Climb Pikes Peak In June</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Specialty ETFs

TSLA

What's Happening With Ford's Shares Today?

Representative Virginia Foxx from North Carolina reported a sale of Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) stock, according to a April filing. The transaction took place on April 4, 2023.
What Happened: A recent report from the House of Representatives Clerk's Office on April 4, 2023 reveals that Foxx made a sale of <a href="www.benzinga.com/quote/SCHD">Schwab US Dividend Equity ETF</a> stock valued between $50,001 - $100,000.
Schwab US Dividend Equity ETF shares are trading down 0.04% at $72.82 at the time of writing.
<h3>The Importance of Congressional Transactions</h3>
Congressional transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
A Congressional transaction is when any Representative or Senator either buys or sells an individual stock. Anyone working in Congress must file a Periodic Transaction Report to inform the public of their recent transaction within 30 days of being notified of the transaction and within 45 days of the transaction date.
When a Senator or Representative makes a new purchase, that could be an indication that they expect the stock to rise.
A sale, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
In April 2012, Former President Barack Obama signed the STOCK Act into law. The act prohibits members of Congress from using private information given to them by their position for personal gain such as buying or selling a stock. The act also expanded disclosure requirements for members of Congress by requiring them to file a monthly disclosure. 
<h3>Trade Recap</h3>
A April filing states that North Carolina Representative Virginia Foxx sold shares of Schwab US Dividend Equity ETF. The exact amount of the transaction remained unknown but the filing states a range of $50,001 - $100,000.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Government

Politics

North Carolina Rep. Virginia Foxx Sold Up to $100K Worth of Schwab US Dividend Equity ETF Stock

The U.S. Senate on Wednesday voted to adopt a resolution to overturn&nbsp;a Department of Labor&nbsp;rule which allows retirement plans to consider environmental, social and governance (ESG) investing when making investment decisions, according to multiple news outlets.
What Happened: Republicans have been heavily critical of the President Joe Biden administration rule, saying it is part of a &quot;woke&quot;&nbsp;political agenda, although the rule merely gave retirement plans the ability to weigh ESG when making investment decisions as opposed to mandating the practice.
Biden is expected to veto the bill, which will mark the first of such actions taken by the president during his term, according to Bloomberg.
&ldquo;@SenSchumer is right: Republicans&rsquo; hypocritical resolution to nullify @USDOL&rsquo;s ESG rule ties investors&rsquo; hands &amp; would force their extremist views on investors. Thankfully, @POTUS will veto to protect retirees&rsquo; freedom to invest savings where they want,&rdquo; Sen.&nbsp;Elizabeth Warren&nbsp;((D-Mass.) wrote on Twitter Thursday.
Republicans, led by&nbsp;Rep. Andy Barr (R-KY)&nbsp;who introduced the bill, voted 50-46 to end the ESG rule, aided by moderate Democrats Jon Tester of Montana and Joe Manchin of West Virginia, <a href="https://www.bloomberg.com/news/articles/2023-03-01/republicans-anti-esg-bill-on-track-to-pass-senate-prompt-biden-veto#xj4y7vzkg">according</a> to Bloomberg.
What Is ESG:&nbsp;ESG investing allows for social and environmental considerations to be weighed when creating or adjusting an investment portfolio, as opposed to only considering financial factors in investment decisions, <a href="https://www.forbes.com/sites/anthonytellez/2023/02/28/what-is-esg-investing-and-why-republicans-are-trying-to-ban-it-from-retirement-funds/?sh=1d5f615674e1">according</a> to Forbes.
When ESG investing, portfolio managers may choose to steer away from fossil fuel or weaponry and ammunition stocks and instead, move toward companies that are environmentally and socially responsible.
Republicans against the rule say ESG investing would allow fund managers to place priority on their own beliefs rather than looking out for the best financial returns for retirees.
The Department of Labor, in contrast, believes the environment and social factors should be taken into consideration to determine risk in order to protect long-term investments.
What&#39;s Going On With ESG ETFs: Many ESG ETFs, which focus on tracking stocks with positive environmental, social and governance impacts, declined in February after Republicans started to speak out against Biden&rsquo;s rule, which came into effect on Jan. 30. If Biden follows through and vetoes Wednesday&rsquo;s bill, those same ESG ETFs could see an upside.
Three ESG ETFs To Consider:
&bull; iShares ESG Aware MSCI USA ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/esgu#NYSE">ESGU</a>) was trading up&nbsp;about 0.84% on Thursday and&nbsp;is up 3.28% year-to-date. The <a href="https://www.ishares.com/us/products/286007/ishares-esg-msci-usa-etf-fund">fund&#39;s</a> top three holdings are Apple, Microsoft and Amazon.
&bull; Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>) was trading up&nbsp;about 0.47% on Thursday and is down about 1.26% year-to-date. The <a href="https://www.etf.com/SCHD#fit">fund&#39;s</a> top three holdings are Broadcom, Verizon and Cisco Systems.
&bull; Goldman Sachs Future Real Estate and Infrastructure Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/grei#NYSE">GREI</a>) was trading up 0.56% and&nbsp;is up 3.12% this year. The <a href="https://www.etf.com/GREI#fit">fund&#39;s</a> top three holdings are Prologis, Transurban Group and National Grid.
Read Next:&nbsp;<a href="https://www.benzinga.com/general/politics/23/03/31139590/ron-desantis-memoir-not-big-or-beautiful-reads-like-a-politicians-memoir-churned-out-by-chatgpt-">Ron DeSantis Memoir Not Big Or Beautiful: &#39;Reads Like It Was Churned Out By ChatGPT&#39; Says Critic</a>

Financial Advisors

Personal Finance

ESGU

GREI

Biden's ESG Rule, Termed 'Woke' By Republicans, Overturned By US Senate Bill; Biden To Veto

Investing in an exchange-traded fund that invests in large cap dividend stocks can be a great way to secure passive income.
Additionally, investing in such an ETF will allow&nbsp;diversification of&nbsp;a portfolio so it&nbsp;becomes more <a href="https://www.benzinga.com/markets/asia/22/09/29104159/as-the-spread-between-the-dividend-yields-and-bond-yields-widens-to-levels-unseen-since-2011-these-2">immune to unsystematic risk.</a>&nbsp;This type of risk&nbsp;is unique to a specific company or industry and can be mitigated&nbsp;through diversification.
Systematic risk on the other hand is a type of risk that impacts the broader market&nbsp;and can be mitigated by investing in international markets, but cannot be completely eliminated.
Check out&nbsp;two dividend ETFs that can&nbsp;help with unsystematic risk.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/large-cap/22/09/28763841/invest-with-these-2-high-yielding-dividend-etfs-for-an-easier-diversified-strategy">2 High-Yielding Dividend ETFs That May Help Diversify Your Investment Strategy</a>
Schwab US Dividend Equity ETF (ARCA: SCHD) is offering a dividend yield of 3.23% or $2.48 per share annually, making quarterly payments, with a solid track record of increasing its dividends for nine consecutive years.
The goal of Schwab US Dividend Equity ETF is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index.
The Schwab US Dividend Equity ETF&rsquo;s top three holdings include Merck &amp; Co Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) 4.32%, Pfizer Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) 4.14%, and PepsiCo, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>) 4.11%, as of Sept. 30, 2022.
<a href="https://www.benzinga.com/money/vanguard-review/">Vanguard</a> High Dividend Yield ETF (ARCA: VYM) is offering a dividend yield of 2.92% or $3.22 per share annually, through quarterly payments, with a strong track record of increasing its dividends for 11 consecutive years.
Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.
The Vanguard High Dividend Yield ETF&rsquo;s top three holdings include Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>) 3.44%, Exxon Mobil Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) 2.92% and JPMorgan Chase &amp; Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) 2.44%, <a href="https://www.benzinga.com/news/large-cap/22/11/29505353/jpmorgan-jumps-into-healthcare-space-as-vc-funding-slows-valuations-fall">as of Sept. 30, 2022</a>.
See Also:&nbsp;<a href="https://www.benzinga.com/general/entertainment/22/11/29684333/as-cathie-woods-ark-etf-surges-these-7-stocks-in-the-fund-are-up-over-20-in-5-days">As Cathie Wood&#39;s ARK ETF Surges, These 7 Stocks In The Fund Are Up Over 20% In 5 Days</a>
Photo: Shutterstock
&nbsp;

Long Ideas

Dividends

These 2 Dividend Paying ETFs Have A Track Record For Increasing Payments, Can Help Diversify Against Industry Risk

Volatility and uncertainty surrounding global economic growth and rising yields have made investors defensive. This has increased the appeal for products that provide safety and stability in a rocky market.
Dividend-focused products offer both safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are the major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long-term.
While there are plenty of options in the dividend ETF world, honing in on the &quot;dividend aristocrats&quot;&nbsp;could be the most beneficial way to ride out the current market volatility, resulting from political and geopolitical worries.<iframe allow="autoplay; encrypted-media" frameborder="0" height="315" src="https://www.youtube.com/embed/GpC1-r4xYsQ?rel=0" width="560"></iframe>
<h3>Why Dividend Aristocrats?</h3>
Dividend aristocrats are&nbsp;blue-chip dividend-paying companies, which have a long history of raising dividend payments each year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Investors should note that the dividend aristocrat funds offer more dividend growth opportunities when compared to the other products in the space but might not necessarily have the highest yields. Further, these products lead to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields.
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk adverse long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
Vanguard Dividend Appreciation ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vig#NASDAQ">VIG</a>)
This is the largest and most-popular ETF in the dividend space with AUM of $28.9 billion and average daily volume of about 596,000 shares. The fund follows the NASDAQ US Dividend Achievers Select Index, which is composed of high quality stocks that have a record of raising dividend every year. It holds 182 securities in the basket, with none accounting for more than 4.5% share. The fund charges 8 bps in annual fees.
iShares Select Dividend ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>)
This fund provides exposure to the companies with a consistent 5-year history of dividend payments. It follows the Dow Jones U.S. Select Dividend Index and holds 98 securities in its basket with each accounting for less than 2.6% of assets. The ETF has AUM of $16.7 billion and average daily volume of more than 489,000 shares. It charges 39 bps in fees per year from investors.
SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>)&nbsp;
With AUM of $15.4 billion and average daily volume of 377,000 shares, this fund provides a well-diversified exposure to 111 U.S. stocks that have been consistently increasing their dividends every year for at least 20 years. This can be done by tracking the S&amp;P High Yield Dividend Aristocrats Index. Each firm accounts for less than 2.5% of assets. The fund charges 35 bps in fees.
Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)
With AUM of $7.8 billion, this product offers exposure to 108 high-dividend yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. The fund is well spread across components, with none holding more than 4.8% of assets. It charges 7 bps in annual fees and trades in solid volume of around 758,000 shares a day.
Related Links:
<a href="https://www.benzinga.com/news/18/07/12084608/what-it-takes-to-be-a-dividend-king">What It Takes To Be A Dividend King</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11429074/a-new-aristocrats-etf-with-added-income">A New Aristocrats ETF With Added Income</a>

Broad U.S. Equity ETFs

iShares Dow Jones Select Dividend Index Fund

An Investors' Guide To Dividend Aristocrat ETFs

Exchange traded funds flows data continue confirming investors are fond of low-fee products. Over the past several years, the bulk of ETF flows have been directed to products with annual fees of 0.20 percent, or $20 on a $10,000 investment, or less.
In most cases, dividend ETFs carry larger annual fees than some standard broad market equity funds, but there are still plenty of low-cost dividend ETFs to consider. The Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>) is one of the cheapest.
<h3>What Happened</h3>
The $8.20 billion SCHD, which turns seven years old this month, has an annual fee of 0.07 percent. That&#39;s the equivalent of $7 on a $10,000 investment and enough to make SCHD one of the least expensive ETFs in the dividend category.
SCHD targets the Dow Jones U.S. Dividend 100 Index, which holds companies with a minimum dividend increase streak of a decade.
&ldquo;The fund uses several tactics to avoid owning firms at higher risk of cutting their dividend payment,&rdquo; <a href="https://www.morningstar.com/articles/885508/the-cheapest-dividendfocused-fund-available.html">said Morningstar</a> in a note out Friday<a href="https://www.morningstar.com/articles/885508/the-cheapest-dividendfocused-fund-available.html">.&ldquo;</a>It only includes names that have consistently paid dividends<a href="https://www.morningstar.com/articles/885508/the-cheapest-dividendfocused-fund-available.html"> </a>during the past decade, considers profitability metrics to select its holdings, weights its holdings by market cap, and limits single-stock and sector bets. The profitability metrics and market-cap-weighting approach are evident in its portfolio composition.&rdquo;
<h3>Why It&#39;s Important</h3>
It&#39;s often said &ldquo;you get what you pay for,&rdquo; but cheap in the world of ETFs is not conflated with under-performance. SCHD proves as much.
&ldquo;From its inception in October 2011 through September 2018, the fund outpaced its average peer by 1.5% annualized with slightly less risk,&rdquo; according to Morningstar. &ldquo;The fund&#39;s low fee, favorable overweighting to the technology sector, and stock selection within the industrials sector contributed the most to its outperformance.&rdquo;
SCHD&#39;s allocates about 39 percent of its combined weight to industrial and technology stocks. The fund&#39;s 17.23 percent <a href="https://www.morningstar.com/etfs/arcx/schd/quote.html">technology weight</a> is high among domestic dividend strategies.
<h3>What&#39;s Next</h3>
SCHD &ldquo;mitigates this risk in several ways. First, it screens out stocks that haven&#39;t consistently made dividend payments for the trailing 10 years,&rdquo; according to Morningstar. &ldquo;This screen is backward-looking, so it doesn&#39;t guarantee that a stock will maintain its dividend payment, but it demonstrates a commitment of returning cash to shareholders.&rdquo;
Morningstar has a Silver rating on SCHD.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12496892/s-p-500-etfs-just-did-something-they-havent-done-in-a-while">S&amp;P 500 ETFs Just Did Something They Haven&#39;t Done In A While</a>
<a href="https://www.benzinga.com/news/earnings/18/10/12469751/earnings-bell-rings-for-these-leveraged-etfs">Bell Tolls For These Leveraged ETFs</a>

Analyst Color

A Good Deal On A Dividend ETF

One of the primary reasons advisers and individual investors remain enthusiastic about <a href="https://www.benzinga.com/investing/best-brokers-for-etfs/">exchange traded funds</a> is low fees. Add to that, ETF fees are consistently declining, making it harder for higher-priced actively managed mutual funds to retain market share.
Plain vanilla broad market ETFs usually have the lowest fees, but investors can find low expense ratios on dividend funds, too. Nearly 10 U.S.-listed dividend ETFs have annual expense ratio of 0.10 percent or less.
<h3>What Happened</h3>
With an annual fee of just 0.07 percent, or $7 on a $10,000 investment, the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>) is one of the least expensive dividend funds. A recent survey by <a href="https://www.benzinga.com/investing/best-online-stock-broker-for-beginners/">Schwab </a>indicates ETF investors continue prioritizing fees.
&ldquo;The two highest priority evaluation selections made by those ETF investors surveyed were low expense ratio and total cost (defined in the survey as commissions, expense ratio and bid/ask spread),&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research </a>Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Monday. &ldquo;Both of these were either extremely important or somewhat important to 95% of the respondents, followed by 94 percent for how well the ETF tracks its index.&rdquo;
SCHD tracks the Dow Jones U.S. Dividend 100-Index, which requires member firms to have raised payouts for a minimum of 10 consecutive years. Eight of the ETF&#39;s top 10 holdings are Dow components, including Home Depot, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hd#NYSE">HD</a>) and Exxon Mobil Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>). Schwab clients can realize additional savings with SCHD because the ETF is available commission-free on the Schwab ETF OneSource platform.
<h3>Why It&#39;s Important </h3>
Investors should remember that &ldquo;cheap&rdquo; doesn&#39;t always mean &ldquo;good,&rdquo; nor higher fees always lead to &ldquo;bad&rdquo; funds. The WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dgrw#NASDAQ">DGRW</a>) charges 0.28 percent, a very reasonable fee when considering this ETF&#39;s penchant for topping lower-cost rivals.
&ldquo;While both SCHD and DGRW earn a top rating from CFRA for their holdings, costs and more, we think investors need to go beyond finding a cheap ETF available commission free on their preferred brokerage platform,&rdquo; said Rosenbluth.
Over the past three years, DGRW has outperformed SCHD as well as several of the other lowest cost dividend ETFs.
<h3>What&#39;s Next</h3>
Investors are likely to continue prioritizing fees when it comes to ETFs, but they should do their due diligence to avoid leaving returns on the table in the name of cost savings.
CFRA has Overweight ratings on DGRW and SCHD.
Disclosure: The author owns shares of DGRW.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/06/11891655/small-cap-etfs-climb-as-volatility-ebbs">Small-Cap Volatility On The Decline.</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/06/11883564/a-new-etf-gets-tactical-with-growth-stocks">A New Growth ETF.</a>

DGRW

Going Beyond Costs With Dividend ETFs

The Federal Open Market Committee meets this week, and many bond market participants expect the Fed to raise interest rates after having done so three times in 2017.
Expectations of higher borrowing costs have previously been seen as detrimental to dividend stocks and exchange traded funds, but that tide could be turning if last week&#39;s ETF inflows paint an accurate picture. Each of the top 10 asset-gathering ETFs for the trading week ended March 16 were equity funds, and three of those products were dividend funds.
The iShares Select Dividend ETF (NASDAQ: <a class="ticker" href="/stock/dvy#NASDAQ">DVY</a>) added $3.54 billion in new assets last week, good for the second-best total among all U.S.-listed ETFs.
<h3>
	The DVY Surprise</h3>
Against the backdrop of rising interest rates, it is perhaps surprising that DVY would be the top asset gatherer among dividend ETFs. With last week&#39;s haul, DVY has added $2.97 billion in new assets this year, tops among all dividend ETFs and good for the sixth-best total among all ETFs.
DVY, which tracks the Dow Jones U.S. Select Dividend Index, holds 97 stocks, <a href="https://www.ishares.com/us/products/239500/?referrer=tickerSearch">over 26 percent </a>of which hail from the rate-sensitive utilities sector. As the Fed boosted borrowing costs three times last year, DVY trailed the S&amp;P 500 and suffered outflows of $848.5 million.
While DVY allocates almost 15 percent of its weight to financial services stocks, a sector believed to benefit from higher interest rates, it&#39;s not nearly enough to offset its utilities exposure. The utilities sector is already reflecting the specter of multiple interest rate increases this year as the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the largest ETF tracking the sector, is down 4.5 percent year-to-date.
<h3>
	Other Prolific Asset Gatherers</h3>
Last week, the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) and the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) also packed on the assets. Investors added $2.33 billion to SCHD and $1.89 billion to VIG. That sent SCHD&#39;s year-to-date inflows to $2.72 billion, putting it just behind DVY on the list of 2018&#39;s top 10 asset-gathering ETFs.
Neither SCHD nor VIG feature large utilities weights. For example, VIG, the largest U.S. dividend ETF by assets, has utilities exposure <a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0920&amp;FundIntExt=INT&amp;funds_disable_redirect=true#tab=2">of just 1.5 percent</a> compared with its largest sector exposure of 34 percent to industrials.
SCHD devotes just 5.3 percent to utilities stocks, making that the ETF&#39;s third-smallest sector weight. The ETF&#39;s largest sector allocation is 20.5 percent to financial services.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11371538/the-temptation-of-technology-etfs">Tempting Tech ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11363674/mlp-etfs-endure-rough-first-quarter-global-x-says-new-tax-ru">A Rough Patch For MLP ETFs</a>

Investors Renew Affinity For Dividend ETFs

The overwhelming consensus on Wall Street is that Treasury yields are heading higher this year, which could pinch some high-yielding asset classes. Those fears are being reflected in the performance of some sectors believed to be sensitive to interest rates.
Some rate-sensitive sectors are already scuffling. For example, the largest utilities and real estate exchange traded funds are down an average of 4.1 percent to start 2018, while the telecom sector is trailing the S&amp;P 500 by a margin of more than 8-to-1. These trends could prove concerning for yield-based dividend ETFs, indicating that quality and dividend growth could be the factors to focus on.
The Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) is more of a quality/dividend growth idea than it is yield play. SCHD&#39;s dividend yield of 2.7 percent is only a few basis points more than investors get on 10-year Treasuries.
<h3>
	Better Than Focusing On Yield</h3>
The $7.1-billion SCHD tracks the Dow Jones U.S. Dividend 100 Index, which is not weighted by yield. Rather, that index requires member firms to have boosted payouts for at least 10 consecutive years. That methodology has advantages over yield-based strategies.
&ldquo;This fund offers a low-cost portfolio of profitable stocks with attractive dividend yields,&rdquo; <a href="http://beta.morningstar.com/articles/843745/a-dividend-oriented-fund-to-own-for-the-long-haul.html">said Morningstar</a>. &ldquo;This dual focus reduces the fund&rsquo;s exposure to firms with weak fundamentals that may not be able to sustain their dividend payments, which is a risk that can accompany a narrow focus on yield. The fund&rsquo;s sensible strategy and low fee should contribute to its edge over the long run.&rdquo;&nbsp;
SCHD holdings are scored on cash flow/debt, return on equity, indicated dividend yield and five-year dividend growth. High dividend sectors such as telecommunications and utilities are minor parts of SCHD&#39;s sector exposure. Those two sectors combine for just 5 percent of the ETF&#39;s weight.
<h3>
	Tilting Toward Profitability</h3>
SCHD&#39;s focus on profitable companies that are good stewards of invested capital can help keep investors away from financially strained companies that could cut or eliminate dividends.
&ldquo;The fund&rsquo;s profitability tilt is evident. Its return on invested capital has been nearly double the category average since the fund&rsquo;s inception,&rdquo; said Morningstar. &ldquo;Its ROE and return on assets have also been higher than the category averages since its inception.&rdquo;
SCHD devotes 22.2 percent of its weight to the cash-rich technology sector, one of the largest technology weights among all dividend ETFs.
Related Links:
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/01/11070301/a-contrarian-dividend-idea">A Contrarian Dividend ETF</a>

A Steady, Cheap Schwab Dividend ETF

Some dividend exchange-traded funds are lagging the broader market this year, but that does not mean income-starved investors should take their eyes off the dividend ETF ball. The popular Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) is up about 5 percent year to date, well behind the S&amp;P 500, but SCHD remains a solid idea for investors looking easy-to-understand dividend exposure via the ETF wrapper.
<h3>Dividend ETF SCHD</h3>
SCHD follows the Dow Jones U.S. Dividend 100 Index, which mandates member firms have a minimum dividend increase streak of 10 years. The ETF debuted in October 2011 <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/08/8282916/an-etf-for-cost-conscious-dividend-investors">and now has more than $5.5 billion</a> in assets under management. To be precise, SCHD holds 118 stocks.
SCHD takes &ldquo;the U.S. stocks that pay dividends, targets the upper half and then scores those on an equally-weighted metric of cash flow to debt, return on equity, indicated dividend yield &mdash; so the forward dividend yield for the next 12 months &mdash; and then five-year dividend growth history,&rdquo; said Morningstar <a href="http://beta.morningstar.com/videos/811008/Our-Favorite-Dividend-ETFs.html">in a recent note</a>.
<h3>Quality With Value Exposure</h3>
SCHD can be deemed a quality ETF with some value exposure. Importantly, many of SCHD&#39;s holdings are considered wide-moat firms by Morningstar.
Another reason SCHD is a hit with investors is its low fee. The ETF charges just 0.07 percent per year, or the equivalent of $7 on a $10,000 investment. That makes the ETF one of the cheapest U.S. dividend funds. Further cost savings can be realized by Schwab clients as SCHD is available on Schwab&#39;s commission-free ETF OneSource platform.
&ldquo;Using this equal-weighted composite it screens out the top 100 names and then equal weights those. So, in this case, you have a market-cap-weighted fund that&#39;s screening out systematically some of the lesser-quality names that may cut their dividends which helps it to generate higher-quality dividend-paying names, but it still lands in the large-cap value category,&rdquo; Morningstar said of SCHD.
Consumer staples and technology stocks combine for 47 percent of SCHD&#39;s weight. SCHD&#39;s more than 22 percent allocation to technology stocks is one of the largest among U.S. dividend funds. Industrial and consumer discretionary combine for almost 27 percent of SCHD&#39;s roster. Lower quality energy stocks are less than 6 percent of the fund&#39;s weight and SCHD has a barely noticeable half percent weight to interest rate-sensitive utilities stocks.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/06/9586834/europe-etfs-hauled-in-plenty-of-cash-in-may">Europe ETFs Hauled In Plenty Of Cash In May</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/06/9567799/traders-are-flocking-to-leveraged-energy-etfs">Traders Are Flocking To Leveraged Energy ETFs</a>

Keeping It Simple With This Dividend ETF

Many market observers speculating that the Federal Reserve could raise interest rates multiple times this year following just one increase in each of the past two years. Couple that with some investors theorizing 3 percent Treasury yields would spell doom for the bond bull market, high dividend stocks and exchange-traded funds could come under pressure.
There are plenty of ETFs that, while focusing on payout strategies, do not emphasize high dividend names and/or defensive, rate-sensitive sectors. That group includes the Schwab Strategic Trust (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>).
<h3>The ETF And Her Index</h3>
The $4.9 billion SCHD tracks the Dow Jones Dividend 100 Index, which along with a quality mandates that constituent firms have a dividend increase streak of at least 10 years. As highlighted by top 10 holdings such as Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), many of SCHD&#39;s 114 holdings have payout increase streaks spanning much longer than 10 years.
<h3>A Quiet Entrance</h3>
Still, SCHD has not set the world on fire since coming to market in 2011.
&ldquo;Since its inception in October 2011, SCHD has managed to keep pace with its average peer in the large-value category. The fund&#39;s middling performance over this span can be largely attributed to the fact that high-quality stocks have lagged both the broader market as well as higher-beta, lesser-quality firms,&rdquo; said <a href="http://news.morningstar.com">Morningstar</a> in a recent note.
With a focus on dividend consistency and growth, it is not surprising that SCHD&#39;s largest sector weight is consumer staples at over a quarter of the ETF&#39;s weight.
<h3>Talk About A Tech Allocation!</h3>
However, SCHD also has one of the largest allocations to technology stocks among all dividend ETFs at nearly 21.5 percent. That is notable for multiple reasons, including tech&#39;s dividend ascent over the past few years and the sector&#39;s stout cash piles, <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/04/7849141/cost-efficiency-and-quality-with-this-dividend-etf">which should ensure dividend growth going forward</a>.
&ldquo;Relative to its large-cap dividend-oriented peers, this fund will likely generate an income stream that is more stable and that should grow with time. This is reflective of the methodology of its underlying benchmark, which specifically targets high-quality, steady dividend payers, and is not--as some of competing funds&#39; benchmarks are &mdash; tuned to isolate constituents exclusively on the basis of high current and/or prospective payouts or yields,&rdquo; according to Morningstar.
With an annual expense ratio of 0.07 percent, or $7 per $10,000 invested, SCHD is the least expensive dividend ETF on the market. Yes, even less expensive than its Vanguard equivalents.
Disclosure: Todd Shriber owns shares of Johnson &amp; Johnson.

Tech

Quality Dividends On The Cheap With This ETF

Investors love dividends and dividend exchange traded funds. Over $100 billion has flowed into such ETFs over the past five years. ETF issuers have also been embracing the ETF of ETFs structure, or those ETFs that are comprised of other ETFs.

	Those two themes meet in the newly minted Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV). PFV hails from the same issuer that launched the Amplify Online Retail ETF (NASDAQ: <a class="ticker" href="/stock/ibuy#NASDAQ">IBUY</a>), one of this year&#39;s <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8497921/a-new-possibly-better-way-to-play-consumer-discretionary-stoc">best-performing consumer discretionary</a> ETFs.

	The quintet of dividend ETFs comprising PFV&#39;s lineup is curated based on factors such as low fees, low volatility and income-generating potential. PFV&#39;s roster is comprised of well-known dividend and value ETFs, such as the iShares Core High Dividend ETF (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>), Vanguard High Dividend Yield ETF (NYSE: <a class="ticker" href="/stock/vym#NYSE">VYM</a>), Schwab US Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>), Schwab U.S. Large-Cap Value ETF (NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>) and the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>).

	&ldquo;Potential investors should be aware of their company exposure when investing in these types of fund-of-fund strategies. For instance, investors would be overweight large companies like Microsoft Corporation (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>), AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Exxon Mobil Corp. (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) as the five underlying ETFs all count these companies among their top holdings,&rdquo; according to <a href="https://www.etftrends.com/2016/09/a-new-fund-of-funds-etf-to-target-right-dividend-stocks/">ETF Trends</a>.

	DHS has been remarkably productive and rewarding for investors over the past decade. The ETF tracks the WisdomTree High Dividend Index, which is one of &ldquo;11 of WisdomTree&rsquo;s 12 dividend-weighted Indexes beat their comparable broad based cap-weighted index over the past 10 years in the U.S. and in the developed world,&rdquo; <a href="https://www.wisdomtree.com/blog/index.php/wisdomtrees-10-year-anniversary-how-did-we-do/">according to WisdomTree</a>.

	A significant driver of DHS&#39;s success is that the ETF, like other WisdomTree dividend ETFs, breaks from the norms of the dividend ETF universe. Those norms being either weighting by yield or focusing on backward-looking dividend increase streaks. Rather, DHS&#39;s underlying index &ldquo;is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.

	SCHD is the least expensive ETF in PFV&#39;s lineup with an annual fee of just 0.07 percent. DHS is the only ETF on PFV&#39;s roster that pays a monthly dividend. The new amplify ETF charges 0.49 percent per year, or $49 on a $10,000 investment.

New ETFs

IBUY

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Schwab US Dividend Equity ETF declares quarterly distribution of $0.8241

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
<a href="https://investorplace.com/stock-types/dividend-stocks/">Dividend stocks</a> are a powerful multiplier. Not only do investors benefit from capital appreciation from the stock but their portfolios are supercharged by the dividend payments increasing total returns.



The best dividend stocks to buy are those that consistently grow the payout. It&rsquo;s not a one-and-done situation. They raise their payout year after year, compounding and amplifying the effects. It&rsquo;s like turbo boosting your portfolio&rsquo;s growth engine.



It is why investors love Dividend Aristocrats and Dividend Kings. These are companies that have increased their dividends for at least 25 years and 50 years, respectively.



Yet, there are other stocks that have solid track records of raising their payouts though just not as long &mdash; yet. These dividend <a href="https://investorplace.com/stock-types/growth-stocks/">growth stocks</a> reward investors through share price increases and rising dividend payouts. Many bolster shareholder returns further by buying back stock.



The following dividend stocks just hiked their payouts and represent some of the best dividend stocks to buy today.



<h2>Kroger (KR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/10/kroger-kr1600-300x169.png" alt="Kroger (KR) Supermarket. The Kroger Co. is One of the World's Largest Grocery Retailers."><div>Source: Eric Glenn / Shutterstock.com</div></div>Grocery store giant Kroger (NYSE:<a href="https://investorplace.com/stock-quotes/kr-stock-quote/">KR</a>) recently announced it was raising its payout by 10%. The dividend will grow to $1.28 per share from $1.16 per share. It marks the <a href="https://ir.kroger.com/news/news-details/2024/Krogers-Board-of-Directors-Raises-Quarterly-Dividend-by-10/default.aspx#:~:text=CINCINNATI%2C%20June%2027%2C%202024%20%2F,%241.16%20to%20%241.28%20per%20year.">18th consecutive annual increase</a> in the payout, which has grown by a compound annual growth rate (CAGR) of 13.5% since the dividend was reinstated in 2006.



Kroger is the largest pure-play supermarket stock with over 2,700 stores. It is in the middle of trying to acquire the Albertsons (NYSE:<a href="https://investorplace.com/stock-quotes/aci-stock-quote/">ACI</a>) chain of supermarkets, though it is being opposed by the Federal Trade Commission (FTC) on <a href="https://investorplace.com/2024/05/stock-market-crash-alert-3-must-buy-warren-buffett-stocks-when-prices-plunge/">antitrust concerns</a>. The regulatory agency is suing the companies to block the merger. Together, the two supermarkets would have around 5,000 stores.



To get around the objections, Kroger and Albertsons have agreed to boost the number of stores they will divest to 579, up from 413. They will sell the locations to C&amp;S Wholesale Grocers, the largest wholesale grocery supply company in the U.S. and the owner of grocery store chains including Piggly Wiggly and Grand Union.



Even if the acquisition fails, Kroger represents a <a href="https://investorplace.com/2024/07/3-stocks-that-could-make-you-rich-by-2050/">good dividend stock to buy</a>. The stock trades at 11 times earnings estimates and a fraction of its sales. Wall Street expects earnings to triple over the next five years, from a 2.4% CAGR over the last half decade to 8%.&nbsp;



<h2>Goldman Sachs (GS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/09/gs1600-300x169.png" alt="In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background"><div>Source: rafapress / Shutterstock.com</div></div>You can tell it was a good year for <a href="https://investorplace.com/industries/financial/">financial stocks</a> as numerous banks and investment banking firms were hiking their dividends. Goldman Sachs (NYSE:<a href="https://investorplace.com/stock-quotes/gs-stock-quote/">GS</a>) was one of the best, hiking its payout by 9%.



Other big banking concerns like JPMorgan Chase (NYSE:<a href="https://investorplace.com/stock-quotes/jpm-stock-quote/">JPM</a>), Morgan Stanley (NYSE:<a href="https://investorplace.com/stock-quotes/ms-stock-quote/">MS</a>) and Bank of America (NYSE:<a href="https://investorplace.com/stock-quotes/bac-stock-quote/">BAC</a>) all followed suit with increases around 8% or so. One of the disappointments, though, was U.S. Bancorp (NYSE:<a href="https://investorplace.com/stock-quotes/usb-stock-quote/">USB</a>), which only raised its dividend 2%. As that is less than inflation, investors are actually receiving less money than they previously did.



Goldman Sachs is trying to <a href="https://investorplace.com/2024/07/the-3-most-undervalued-dow-stocks-to-buy-in-july-2024/">correct the errors of its past ways</a>. Having expanded into consumer-facing finance, it found the business yielded poor returns. The investment banking giant ended up closing down and selling off many of those business. It wants to now just focus on its investment banking, trading and investment management operations.



With analysts forecasting long-term earnings growth of twice the rate it previously did, Goldman Sachs stock is trading at a significant discount. With a 12-year history of raising its payout and a 7.8% CAGR for the past year, the reformed investment bank is a dividend stock worth buying.



<h2>Jefferies Financial Group (JEF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/jefferies_jef_1600-300x169.png" alt="A photo of a hand holding a smartphone showing the Jefferies logo while in the background, a monitor shows the Jefferies website."><div>Source: T. Schneider/ShutterStock.com</div></div>In that same financial services vein is Jefferies Financial Group (NYSE:<a href="https://investorplace.com/stock-quotes/jef-stock-quote/">JEF</a>). But it hiked its dividend by a rather large 16.7%. That should be no surprise to investors. The investment banking firm has <a href="https://investorplace.com/2024/07/3-stocks-that-could-make-you-rich-by-2050/">increased the payout</a> at a 19% CAGR while over the last five years raised it 22% annually.



JEF earns significant fees from capital markets activities, underwriting, financial advisory and asset management services. It generated $1.7 billion in <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/96223/000009622324000020/jef-20240626.htm">second-quarter revenues</a>, up 60% year-over-year (YOY). Over the first half of 2024, they are up 46%, indicating just how active the deal-making market has been.



Investment bank and capital markets in particular have seen robust growth with revenue 29% higher this year. Its asset management business had de minimis revenues last year but it generated $430 million from it through the first two quarters of this year.&nbsp;



With <a href="https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-outlook#:~:text=The%20latest%20Deal%20Barometer%20forecasts,those%20looking%20to%20divest%20assets.">corporate merger and acquisition activity</a> set to grow 20% in 2024, according to EY-Parthenon, look for Jefferies Financial Group to gain a good portion of that work that will flow to its bottom line.



<h2>Darden Restaurants (DRI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/dri-stock-300x169.jpg" alt="olive garden (dri) sign on front of building"><div>Source: Sundry Photography / Shutterstock.com</div></div>The owner of Olive Garden and LongHorn Steakhouse is the next dividend stock that generously raised its dividend. Darden Restaurants (NYSE:<a href="https://investorplace.com/stock-quotes/dri-stock-quote/">DRI</a>) increased the payout 6.9% to $1.40 per share from $1.31 per share.



Fiscal 2024 revenue grew 3.5% to almost $3 billion with Olive Garden rising less than 1%, LongHorn Steakhouse up over 7% and its fine dining chains like Ruth&rsquo;s Chris Steakhouse, Eddie V&rsquo;s, Seasons 52 and Capital Grille was up 55%. That is distorted a bit because <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/940944/000094094424000026/dri-20240618.htm">Darden acquired Ruth&rsquo;s Chris</a> in June 2023. Absent the chain&rsquo;s inclusion, DRI&rsquo;s total sales increased 8.6% on a 1.6% rise in same store sales.



Darden Restaurants has <a href="https://investor.darden.com/stock-info/dividend-history/default.aspx">paid a dividend every year</a> since 1995 and has steadily increased it every year since 2015. However, during the pandemic when restaurants were forced to close, it did cut the payout. But beginning in 2021 it resumed its regular payments and continued its policy of raising the dividend.



Assuming no global health calamity strikes again, Darden Restaurants is a dividend stock worth buying.



<h2>Citigroup (C)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/citigroup-c-stock-300x169.jpg" alt="A Citibank (C) sign hangs on a Citibank office in Hong Kong. Citigroup layoffs"><div>Source: TungCheung / Shutterstock.com</div></div>Yet another financial stock was rushing to boost its payout. This time Citigroup (NYSE:<a href="https://investorplace.com/stock-quotes/c-stock-quote/">C</a>) raised its dividend by 5.7%. The bank is another <a href="https://investorplace.com/2024/05/buffetts-banking-bets-analyzing-the-3-largest-bank-stocks-in-berkshires-portfolio/">turnaround play</a> in the financial sector. So far it is successfully exceeding its targets. 



Just-reported second-quarter results beat analyst revenue and earnings expectations. Revenue of $20.14 billion was ahead of Wall Street&rsquo;s forecast of $20.07 billion while earnings of $1.52 per share easily topped estimates of $1.39 per share. Citigroup also benefited strongly from the rebound in Wall Street activity. The bank&rsquo;s investment banking revenue rocketed 60% higher to $853 million.



Yet, Citigroup is still&nbsp;a work in progress. Only last week, The Federal Reserve rebuked the bank for making insufficient progress on data and risk management. It was <a href="https://www.federalreserve.gov/newsevents/pressreleases/enforcement20240710a.htm">fined $60 million</a>. But, it did pass the <a href="https://www.citigroup.com/global/news/press-release/2024/citi-announces-stress-capital-buffer-requirement">Fed&rsquo;s annual stress test</a>, and its required capital buffer was lowered to 4.1% from 4.3%. Citigroup&rsquo;s common equity Tier 1 ratio, or CET1, capital ratio is 12.1%, which is 13.5% above the regulatory minimums.&nbsp;



Citigroup&rsquo;s improved financial picture allowed the bank to raise its dividend from 53 cents to 56 cents per share.



<h2>Caterpillar (CAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/cat-stock-300x169.jpg" alt="Image of a yellow construction vehicle with the Caterpillar (CAT) logo on it"><div>Source: astudio / Shutterstock.com</div></div>Heavy equipment maker Caterpillar (NYSE:<a href="https://investorplace.com/stock-quotes/cat-stock-quote/">CAT</a>) is a rock-solid dividend stock that just increased its payout by 11 cents to $1.41 per share, which is <a href="https://www.caterpillar.com/en/news/corporate-press-releases/h/caterpillar-dividend-increase-2024.html">an 8% hike</a>. Also, the company added $20 billion to its stock buyback program, giving it a total of $21.8 billion to repurchase shares. And, CAT said it continues to use virtually all the free cash flow produced by its primary operations for dividends and buybacks.



Caterpillar is a Dividend Aristocrat, having raised its payout for 30 consecutive years. Impressively, it&rsquo;s made a payment every year since going public in 1933.



Shares are up 13% in 2024 and 32% over the past year, yet the stock has historically been cyclical. You don&rsquo;t want to buy a cyclical stock at peak earnings because a downturn will inevitably follow. But that could be changing for Caterpillar.



Because its heavy equipment is increasingly used to build alternative energy infrastructure, mine metals needed for electric vehicles and provide equipment for generating electricity used by EVs, Caterpillar&rsquo;s cyclicality may diminish over time. However, it currently still relies upon more <a href="https://investorplace.com/2024/07/3-stocks-that-could-make-you-rich-by-2050/">traditional mining and construction</a> activity so it should greatly benefit from the $1.2 trillion infrastructure bill passed in 2021. There remains a long tailwind of growth that will push Caterpillar higher.



<h2>Schwab U.S. Dividend Equity ETF (SCHD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/etf-up-arrow-300x169.jpg" alt="graphic of the phrase ETF sitting on a computer in front of an increasing line graph on top of a bar graph. Best Funds for Aggressive Investors. Best Growth ETFs"><div>Source: Shutterstock</div></div>The last stock that hiked its dividend recently is the Schwab U.S. Dividend Equity ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/schd-stock-quote/">SCHD</a>), an exchange-traded fund (ETF) that holds about 100 dividend-paying stocks and yields 3.6% annually. Its dividend was raised by a <a href="https://investorplace.com/2024/07/cash-flow-alert-3-stocks-that-just-raised-their-dividends/">whopping 35%</a>, from 61 cents per share to 82 cents per share. However, some caveats come with that.



The ETF&rsquo;s dividends aren&rsquo;t static but change every quarter. They can also decline, though such instances are rare.&nbsp;



The Schwab U.S. Dividend Equity ETF was created in 2011 with the purpose of tracking<a href="https://www.schwabassetmanagement.com/products/schd"> the total return</a> of the Dow Jones U.S. Dividend 100 Index. As a result, it has a strong record of dividend growth with payouts expanding by a compound annual rate of 10.5% for the past decade.



As the premiere dividend growth stock to own, its top three holdings are Home Depot (NYSE:<a href="https://investorplace.com/stock-quotes/hd-stock-quote/">HD</a>), Amgen (NASDAQ:<a href="https://investorplace.com/stock-quotes/amgn-stock-quote/">AMGN</a>) and BlackRock (NYSE:<a href="https://investorplace.com/stock-quotes/blk-stock-quote/">BLK</a>).



On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/7-dividend-stocks-that-just-raised-their-payouts-july-2024/">7 Dividend Stocks That Just Raised Their Payouts: July 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.


Virginia FoxxHouse (R-NC)	$50K - $100K	etf	Sale	Apr 04, 2023	Mar 08, 2023	House
Steve CohenHouse (D-TN)	$50K - $100K	etf	Purchase	Aug 05, 2022	Jul 29, 2022	House

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