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The Market Is Down 5% in 2026. Here's the Best Dividend Stock to Buy With $10,000 Right Now.

March 27, 2026 — 07:52 pm EDT

Written by

Selena Maranjian for

The Motley Fool->

Key Points

- This exchange-traded fund will quickly plunk you into about 100 solid dividend payers.

- It has delivered impressive results over the past decade.

- It can perform rather well during market downturns, too, via its dividend payments.

- 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›

The stock market, as measured by the S&P 500 index of 500 of America's biggest companies, is down 5.4% so far this year, as of March 24. When the S&P 500 is down, it means that more than a few companies' stocks are also down. And with dividend-paying stocks, a lower stock price means a boosted dividend yield.

Image source: Getty Images.

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So, which dividend payer might you consider for your long-term portfolio, whether you have $10,000 or $100 or $100,000 to invest? Well, I suggest buying a bunch of solid dividend payers via a single exchange-traded fund (ETF): the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). (Remember that an ETF is a fund that trades like a stock.)

Why the Schwab U.S. Dividend Equity ETF? Well, because it offers the best of two worlds -- price appreciation and dividend income. The S&P 500 recently sported a dividend yield of merely 1.1%. But the Schwab ETF's yield was recently 3.3% -- 3 times bigger! Check out its performance, too:

Period

Average Annual Gain

Past 3 years

12.90%

Past 5 years

8.92%

Past 10 years

12.36%

Data source: Morningstar.com, as of March 24, 2026.

The ETF tracks an index of healthy dividend payers, holding around 100 of them. Here are the recent top 10 holdings:

Stock

Weight in ETF

Recent Yield

1. Chevron

4.58%

5.31%

2. ConocoPhillips

4.20%

2.60%

3. Verizon Communications

4.10%

5.56%

4. Merck

3.99%

2.92%

5. Texas Instruments

3.96%

2.92%

6. Coca-Cola

3.94%

2.76%

7. UnitedHealth Group

3.84%

3.25%

8. Abbott Laboratories

3.79%

2.42%

9. PepsiCo

3.79%

3.78%

10. Amgen

3.79%

2.89%

Data source: Yahoo! Finance and Morningstar.com, as of March 25, 2026.

This single investment will quickly have you indirectly holding shares in about 100 solid dividend payers that are likely to grow over time while delivering plenty of passive income that should also grow over time. Should the stock market stall or slump, most of the fund's components will likely keep paying out their dividends, too, making this a sturdy holding in troublesome times. Overall, it's a tough proposition to beat.

Should you buy stock in Schwab U.S. Dividend Equity ETF right now?

Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:

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Selena Maranjian has positions in Amgen, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Abbott Laboratories, Amgen, Chevron, Merck, and Texas Instruments. The Motley Fool recommends ConocoPhillips, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.