Over the last 50 years, the average S&P 500 member has delivered a 7.7% annualized total return. However, returns among S&P 500 members largely fell into two groups. Companies that paid dividends outperformed the average (9.2% average annual return according to data from Ned Davis Research and Hartford Funds), while those that didn’t pay dividends underperformed (4.3%). Meanwhile, the best returns came from dividend growers and initiators (10.2%).

Given these returns, if I could buy only one ETF this month, I’d choose the Schwab U.S. Dividend Equity ETF (SCHD +0.13%). It focuses exclusively on investing in high-yielding dividend stocks that grow their payouts.

Image source: Getty Images.

A straightforward strategy

The Schwab U.S….