Market Predictions Amid Global Unrest

What happens next in the market? Honestly, it’s tough to predict. With ongoing global tensions—think the situation in Iran and the unrest in Ukraine—plus rising tariffs and inflation stemming mainly from oil supply issues, one might hope for a market recovery.

Take a step back, though. The S&P 500 has shown strong performance in recent years. Historically, the average annual return has hovered around 10%, which is pretty encouraging.

Data source: Slickcharts.com. Returns reflect reinvested dividends.
*Year-to-date, as of May 28, 2026

So, what’s the takeaway? Aside from that one off year in 2022, the S&P 500 has seen substantial gains six times in the last seven years, often exceeding 20%. Given all this, a market correction this year or next wouldn’t be surprising.

If you think a pullback is on the horizon, consider focusing on dividend-paying stocks. These companies typically maintain dividend payments regardless of economic conditions, and they’re usually well-established with stable profits. A fast-growing stock, in contrast, might be more susceptible to downturns.

Exploring the Schwab US Dividend Stock ETF

For those interested in investing in dividend-yielding stocks, the Schwab US Dividend Stock ETF is worth a look. This particular ETF is designed to offer exposure to a range of dividend-paying companies.

The Schwab US Dividend Stock ETF tracks the Dow Jones US Dividend 100 Index, which consists of around 100 carefully vetted stocks known for their long-standing dividend history and financial strength. Here’s how it has performed recently:

Data source: Morningstar.com, as of May 27, 2026.
*From earliest available date

While many dividend-focused funds may not see high growth or have modest yields, this ETF strikes a nice balance—it offers a yield of 3.3% along with some growth potential.

Here are the top stocks in the ETF, representing about 44% of its total value. If these companies are up your alley, investing in this ETF might give you a solid footing.

Data source: Morningstar.com, as of May 27, 2026.

If this looks appealing, it might be worth diving deeper into this ETF.