Fri Apr 04 13:40:00 UTC 2025: **Top Dividend ETF Favors Oil Giants Chevron and ConocoPhillips**
**NEW YORK, NY – October 26, 2023** – The Schwab U.S. Dividend Equity ETF (SCHD), a popular ETF boasting over $70 billion in assets, has solidified its top holdings as oil giants Chevron (CVX) and ConocoPhillips (COP). This move reflects the fund’s focus on high-quality dividend-paying companies, a strategy that has attracted significant investor interest.
SCHD, the second-largest ETF focused on dividend stocks, tracks the Dow Jones U.S. Dividend 100 Index. This index screens companies based on consistent dividend payments and strong financial profiles. The ETF reconstitutes its holdings annually, selecting the top 100 companies. Recent changes saw 23 companies replaced with others exhibiting even higher-quality payouts, resulting in Chevron (4.6% of assets) and ConocoPhillips (4.4%) taking the top spots.
The ETF currently offers a 3.7% dividend yield, significantly exceeding the S&P 500’s 1.3%. Both Chevron, with a 38-year history of dividend increases and a current yield of 4.1%, and ConocoPhillips, with accelerated dividend growth in recent years, are highlighted as strong performers. Chevron’s projected $10 billion increase in annual free cash flow by 2026 and ConocoPhillips’ accretive acquisitions fuel their continued dividend growth prospects.
Investors seeking dividend income can either invest directly in SCHD or selectively add individual holdings like Chevron and ConocoPhillips to their portfolios. Chevron is recommended for those prioritizing high yield, while ConocoPhillips is a better choice for investors seeking strong dividend growth.
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