Historical data shows a clear pattern in S&P 500 returns: dividend-paying stocks have significantly outperformed non-dividend payers over the past 50 years. According to research from Ned Davis Research and Hartford Funds, dividend growers and initiators delivered an impressive 10.2% average annual return, compared to just 4.3% for non-payers. This performance gap has led to a compelling investment recommendation.

Schwab U.S. Dividend Equity ETF (SCHD) stands out as the top ETF choice for March, focusing exclusively on high-yielding dividend stocks with strong growth potential. The fund tracks the Dow Jones U.S. Dividend 100 Index, screening companies based on dividend yield, five-year growth rate, and financial strength. With 100 holdings yielding an average of 3.5%, it offers nearly triple the income of the broader S&P 500.

The fund's strategy is exemplified by its top holding, Lockheed Martin, which boasts a 2.1% dividend yield and 23 years of consecutive increases. This combination of reliable income and steady appreciation has historically produced strong returns, making SCHD an attractive option for investors seeking both current income and long-term growth potential.