Many investors think that dividend stocks are boring investments. While they might not deliver the thrills of some growth stocks, their returns are anything but boring. Over the last 50 years, dividend stocks have outperformed non-dividend payers by more than two-to-one.

The Schwab U.S. Dividend Equity ETF (SCHD +0.83%) has experienced the power of dividend investing firsthand. The exchange-traded fund has delivered a 12.9% annualized return since its formation in October 2011. Here’s a look at why its dividend investment strategy has been so successful.

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Focused on the best dividend stocks

The Schwab U.S. Dividend Equity ETF has a very simple strategy. It tracks the Dow Jones U.S. Dividend 100 Index,…