What might the market do next? Honestly, it’s tough to predict. With the current global unrest—like the ongoing conflict with Iran and the turbulence in Ukraine, along with rising tariffs and inflation, primarily fueled by oil supply issues—it’s easy to think a market recovery is on the horizon.
Despite these challenges, the S&P 500, for example, has shown resilience in recent years, with an average annual return of around 10% over decades.—Many investors might find this figure reassuring.
Let’s not forget about Nvidia back in 2009, when some unusual signals pointed to its growth. Interestingly, a smaller company today is now sending similar signals of potential success. So, it’s worth considering where your investments might lead. More on that to come.
|
year |
S&P500 return |
|---|---|
|
2016 |
12% |
|
2017 |
21.8% |
|
2018 |
(4.4%) |
|
2019 |
31.5% |
|
2020 |
18.4% |
|
2021 |
28.7% |
|
2022 |
(18.11%) |
|
2023 |
26.29% |
|
2024 |
25.02% |
|
2025 |
17.88% |
|
2026* |
11.01% |
Data source: Slickcharts.com. Returns reflect reinvested dividends.
*Year-to-date, as of May 28, 2026
Looking at the numbers, the S&P 500 has had impressive double-digit returns in six out of the last seven years. Excluding 2022, many years saw returns exceed 20%. So, it wouldn’t be astonishing if we experienced a market pullback sometime soon.—- It’s just a thought.
If you’re anticipating a pullback, consider investing in stocks that offer solid dividends. Generally, companies that provide consistent dividends tend to weather market fluctuations more effectively. These companies are usually larger and financially stable, so they may not drop as severely during downturns, unlike those volatile growth stocks.
Introducing the Schwab US Dividend Stock ETF
For those eyeing a diverse range of dividend-paying companies, Schwab US Dividend Stock ETF stands out. It specifically targets dividends, making it an appealing option for many investors.
This ETF is linked to the Dow Jones US Dividend 100 Index, which includes around 100 carefully chosen stocks that have consistently paid dividends for at least 10 years and are considered financially robust. So, let’s take a look at its recent performance:
|
ETF |
recent yield |
Average annual revenue over 5 years |
Average annual revenue over 10 years |
Average annual revenue over 15 years |
|---|---|---|---|---|
|
Schwab US Dividend Stock ETF (NYSEMKT: SCHD) |
3.3% |
8.73% |
12.87% |
13.30%* |
|
Vanguard S&P 500 ETF (NYSEMKT: VOO) |
1.1% |
13.96% |
15.51% |
15.05% |
Data source: Morningstar.com, as of May 27, 2026.
*From earliest available date
