If I Could Only Buy and Hold 1 Dividend ETF Forever, Here's What I'd Choose
2026-09-02 15:30
•Dana George •The Motley Fool
••••• •••••• Axe Cap view
Why One U.S. Dividend ETF Caught My Eye Over Local Picks
A low-cost U.S. dividend ETF offers a disciplined option amid South Africa's income volatility.
South African dividend stocks have their charm, but I'm keeping an open mind about going offshore for steady income. The Schwab U.S. Dividend Equity ETF (SCHD) is appealing because it targets companies with solid dividend histories and spreads risk evenly across its top holdings like Home Depot and Procter & Gamble. Unlike many JSE counters, which can be hit by commodity swings or local politics, SCHD's focus on financially stable, dividend-paying U.S. giants offers more consistency. While it won't hedge rand weakness, the fund's 3.27% yield and 0.06% fees are hard to beat. That said, currency risk is real. A sharp rand rally could sap gains. Also, if South Africa's economy stabilizes or commodity prices surge, local names like Standard Bank or MTN could reclaim the narrative. For pure dividend income and stability, SCHD stands out. this is just our opinion and not financial advice
Buy SCHD for reliable dividends and portfolio ballast, but keep some exposure to high-quality JSE dividend stocks like Standard Bank as a local hedge.
- SCHD
- USD/ZAR
- Standard Bank
- Rand appreciation reducing foreign gains
- Local economic improvement boosting JSE dividend stocks
6/10
A Motley Fool contributor recommends the Schwab U.S. Dividend Equity ETF (SCHD) as a single buy-and-hold dividend investment. The ETF tracks 100 U.S. stocks with consistent dividend histories and strong fundamentals, features an ultra-low 0.06% expense ratio, and holds well-known companies like Home Depot, Merck, and Procter & Gamble with evenly weighted top holdings to diffuse risk.
Our take is based on reporting first published by The Motley Fool.