Group 1 - The article highlights three high-yield ETFs as strong buy-and-hold opportunities: Vanguard High Dividend Yield ETF, Invesco High Yield Equity Dividend Achievers ETF, and Schwab US Dividend Equity ETF [1] - Vanguard High Dividend Yield ETF offers diversification with over 566 dividend-paying stocks, comparable to the S&P 500 index [3][4] - A $500 investment in Vanguard High Dividend Yield ETF would yield approximately 2.5%, which is more than double the S&P 500 index yield [5] Group 2 - Invesco High Yield Equity Dividend Achievers ETF focuses on stocks that have increased dividends for at least a decade, selecting the top 50 highest-yielding stocks [6] - This ETF weights stocks by dividend yield rather than market cap, giving more influence to higher-yield stocks [6]

Group 1 - The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ: PEY) is designed for long-term investors seeking to invest in often overlooked dividend stocks while also allowing for opportunistic investments [1][2] - This ETF tracks the Nasdaq US Dividend Achievers 50 Index, which includes stocks that have increased dividends for at least 10 consecutive years, excluding real estate investment trusts and limited partnerships [2][3] - The index weights its holdings by yield rather than market capitalization, meaning that higher-yielding stocks have a greater impact on performance, which may lead to a focus on out-of-favor stocks [4] Group 2 - The ETF's portfolio is primarily composed of utility and financial stocks, sectors known for higher yields, which can enhance diversification for investors [6] - The index rebalances quarterly and undergoes an annual complete revamp, helping to mitigate risks associated with holding high-yield and out-of-favor stocks [5]

Core Insights - The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ: PEY) aims to passively track the NASDAQ U.S. Dividend Achievers 50 Index, providing investors with a focus on dividend income [2] Group 1: Investment Strategy - The CEF/ETF Income Laboratory manages portfolios targeting safe and reliable yields of approximately 8%, making income investing more accessible [2] - The service offers managed portfolios, actionable income and arbitrage recommendations, and in-depth analysis of closed-end funds (CEFs) and exchange-traded funds (ETFs) [2] Group 2: Community and Support - The CEF/ETF Income Laboratory has a community of over a thousand members, providing a platform for sharing income ideas and strategies [2] - The majority of holdings in the portfolios are monthly-payers, which aids in faster compounding and smoothing income streams [2]

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].