Core Viewpoint - Schwab US Dividend Equity ETF (SCHD) offers a 3.7% dividend yield, which, while lower than some competitors, presents a compelling investment opportunity due to its focus on quality and growth rather than just yield [2][6]. Group 1: Yield Comparison - The S&P 500 index currently yields around 1.2%, making SCHD's yield nearly three times larger [3]. - Invesco High Yield Equity Dividend Achievers ETF offers a higher yield of approximately 4.5%, which may attract yield-focused investors [3][6]. - A 4% yield is often considered a key threshold for retirement income, as it allows for sustainable withdrawals without depleting principal [5]. Group 2: Investment Strategy - Schwab US Dividend Equity ETF employs a nuanced investment strategy, focusing on stocks that have increased dividends for at least a decade, rather than simply selecting high-yield stocks [8][9]. - The ETF evaluates stocks based on a composite score that includes cash flow to total debt, return on equity, dividend yield, and five-year dividend growth [9]. - The ETF's approach has resulted in a generally rising dividend and share price, contrasting with the more yield-focused strategy of Invesco, which may lead to less attractive dividend growth [11]. Group 3: Long-term Considerations - Dividend growth is crucial for maintaining purchasing power against inflation, and over time, SCHD may provide more income than higher-yielding ETFs that lack growth [12][13]. - Including SCHD in a portfolio alongside higher-yielding options can offer protection against inflation while providing a solid long-term investment strategy [13].

Company Overview - Gorman-Rupp (GRC) is located in Mansfield and operates within the Industrial Products sector, experiencing a price change of -2.35% since the beginning of the year [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 2%, which is significantly higher than the Manufacturing - General Industrial industry's yield of 0.21% and the S&P 500's yield of 1.54% [3] Dividend Performance - Gorman-Rupp's annualized dividend of $0.74 has increased by 2.1% from the previous year, with a total of five dividend increases over the last five years, averaging an annual increase of 4.62% [4] - The current payout ratio stands at 39%, indicating that the company distributes 39% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $1.99 per share, reflecting a 13.71% increase compared to the previous year [5] - The company is viewed as a strong dividend investment opportunity, particularly in the context of rising interest rates, where high-yielding stocks may face challenges [6]