SCHD’s Dividend Growth vs. JEPI’s 8.16% Yield – Which Strategy Wins for Retirees?

Core Insights - Retirees face a choice between high-yield dividend ETFs like JPMorgan Equity Premium Income ETF (JEPI) and long-term growth options like Schwab US Dividend Equity ETF (SCHD) [3][4] Group 1: JPMorgan Equity Premium Income ETF (JEPI) - JEPI offers a high dividend yield of 8.16%, providing significant annual income for investors [5][9] - The ETF invests in defensive, lower-volatility stocks and sells out-of-the-money call options on the S&P 500 Index, using Equity Linked Notes (ELNs) [7][9] - While JEPI provides both yield and upside potential, it has capped upside and limited downside protection, making it perform well in bullish market conditions [8][9] Group 2: Schwab US Dividend Equity ETF (SCHD) - SCHD yields 3.77% with a low expense ratio of 0.06% and offers uncapped upside potential [9] - The ETF has experienced a 4% decline over the past year but provides predictable downside protection [9]