This top dividend -etf loves these leading oil stocks. Should you buy them too?

The Schwab US Dividend Equity ETF (Nysemkt: Schd) is a popular stock market fund (ETF) among dividend investors. It contains 100 of the dividend stocks of the highest quality and follows an index (persecutedDow Jones Us Dividend 100 Index) So that companies are based based on the quality of their dividends.

For this reason, this ETF can be a great tool for investors use Find first -class dividend stocks to expand your income portfolio. At the moment, The Schwab US Dividend Equity ETFs The two top stocks are oil giants Conocophillips (NYSE: COP) And Chevron (NYSE: CVX). Here is a closer look at this fund and why he loves this two tour Oil stocks.

The Schwab US Dividend ETF is one of the top Dividends -Tfs. With over 70 billion US dollars in Assets in management (AUM)It is the second largest ETF-focused ETF special on dividend shares.

A big reason why so many investors poured their money into this ETF is the focus on dividend quality. The ETF pursues the Dow Jones Us Dividend 100 Index, which aims to measure the performance of highly renewable dividend shares with records of consistently paying dividends. It also selects companies based on the strength of their financial profiles compared to peers.

The fund reconstitutes its stocks annuallyMake sure that the top 100 dividend shares are kept by the quality of their payments. It recently dropped 23 shares and replaced them by 23 companies even Payments with higher quality. In addition, the fund has adapted its allocations. As a result, the two best stocks of the ETF are currently conocophillip (4.6% of its assets) and Chevron (4.4%).

Investors who want to generate a dividend income could simply Buy this ETF. You would win with 100 top dividend shares with an exposure a very attractive Combined dividend yield of 3.7% Based on the recent dividend payment of the fund. That is far above that S&P 500Dividend yield (1.3%). Alternatively, investors could get the Holdings out of the fund from the fund in order to expand their existing portfolio to dividend payers.

Chevron and conocophillips are based on their ability to pay dividends.

Chevron is an elite dividend stock. The oil giant has increased its dividend payment for 38 years in a row. In the past five years, the company has grown its dividend faster than the S&P 500 and almost twice the rate of its closest peer. In the meantime, the company offers an attractive return of 4.1%.

Chevron should have no problems increasing its dividend in the future. The oil society expected to increase an annual Free Cashflow of 10 billion US dollars by 2026, driven by Hochmarge production growth and Cost reduction initiatives. For the perspective, Chevron produced $ 15 billion in Free Cashflow last year and paid dividends of $ 11.8 billion. His increasing free cash flow, which does not take into account the closure of the high -grade acquisition of HessShould give him a lot of fuel to further expand his high -ranking dividend at an above -average speed.