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Dividend Stocks Shine Amid Stock Market Sell-Offs

In the latest stock market analysis, dividend stocks are becoming appealing opportunities during recent sell-offs. Investors can focus on the Schwab U.S. Dividend Equity ETF (SCHD) for high-yielding dividends backed by strong financial health.

Date: 
AI Rating:   7

Dividend Opportunities

With recent stock market corrections offering a chance to invest in dividend stocks, the Schwab U.S. Dividend Equity ETF (SCHD) has emerged as a key player. The ETF comprises 100 of the high-yielding dividend stocks, and as the market declines, its dividend yield has increased, making it an appealing investment option.

High-Yielding Dividend Data

One highlighted stock in this ETF is AbbVie (NYSE: ABBV), which has demonstrated an impressive ability to increase its dividends consistently since its inception. AbbVie has grown its dividends by 310% since 2013, showcasing its robust financial metrics and ability to sustain growth. AbbVie currently offers a 3.1% dividend yield, significantly above the S&P 500. Furthermore, AbbVie has reported an operating cash flow of $18.8 billion, effectively covering its $11 billion dividend payouts.

Future Growth Prospects

As for AbbVie's future performance, it forecasts high-single-digit revenue growth through 2029, largely driven by its products, Skyrizi and Rinvoq. This anticipated growth supports the company’s potential for ongoing dividend increases.

ETF Performance

The Schwab U.S. Dividend Equity ETF not only provides a current yield of 3.8% but also indicates a steady income stream, especially as the companies within it continue to increase their dividends. Historically, SCHD's distribution yield has improved, showing a 550% growth in quarterly payments since 2012.

This overarching theme indicates that investors may find significant upside in focusing on dividend stocks within the ETF, especially during volatile market conditions.

Stocks:  SCHD ABBV