International stocks have steadily lagged the S&P 500 for the last 15 years. That kind of chronic underperformance doesn't build a good reputation and it certainly doesn't inspire investors to throw their money at it. Many people will label the Vanguard Total International Stock ETF (NASDAQ: VXUS) (or any international fund for that matter) a "bad" fund. But you can't call a fund bad if you only look at it through the lens of performance. It ignores how the portfolio is structured, what its core strategy ...

Core Insights - The ETF marketplace offers easy and low-cost access to a wide range of investments, including stocks, bonds, commodities, and more [1] - There are over 4,000 ETFs available, which can be overwhelming for beginners, but with proper guidance, creating a diversified portfolio is achievable [2] - A simple stock/bond portfolio is recommended for beginners, with the option to diversify further over time [3] ETF Recommendations - The Vanguard Total Stock Market ETF (VTI) is highlighted as a comprehensive investment option in U.S. stocks, covering over 3,500 companies with a low annual expense ratio of 0.03% [6] - The Vanguard S&P 500 ETF is a strong choice for those preferring large-cap investments, but the preference for a broader market exposure is noted [7] - The Schwab U.S. Dividend Equity ETF (SCHD) is recognized for its strict stock selection process, focusing on financial health and dividend history, narrowing down to the top 100 stocks [8] - Dividend-paying stocks have shown the ability to enhance returns and reduce risk, providing stability and income to improve total returns [9]

The Schwab U.S. Dividend Equity ETF ( SCHD ) had been facing some uncomfortable questions in the run-up to 2026. While soft patches are par for the course with differentiated strategies, three straight years of underperformance againstI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK na ...

To celebrate High Yield Investor turning five, we’re offering a 30-day money-back guarantee . Now is the perfect time to join. We have just released our Top Picks for 2026 , and with the guarantee, you have everything to gain and nothing to lose.Last October, I stated that it was the best time in years to buy the Schwab U.S. Dividend Equity ETF ( SCHD ). At the time, I received a lot of disagreement in the comments section, as SCHD had been on aSamuel Smith has a diverse background that includes being lead ...

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) has experienced significant outperformance in early 2026, driven by a surge in crude oil prices, which has positively impacted its energy stock holdings [2][15]. Group 1: ETF Performance - The Schwab U.S. Dividend Equity ETF has a current income yield of 3.5% over the last 12 months and has delivered robust returns historically [1]. - Despite a lackluster performance in the previous year with only a 0.4% return, the ETF surged nearly 15% in early 2026, significantly outperforming the S&P 500's less than 1% rise [2][5]. Group 2: Sector Exposure - The ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on 100 top dividend stocks, with a high sector weighting in energy stocks at 19.9% as of the end of last year [4][5]. - The high exposure to energy stocks negatively impacted the ETF's returns last year due to falling oil prices [5]. Group 3: Oil Market Influence - Crude oil prices have rallied sharply in 2026, with Brent oil prices increasing by 15% to over $70 a barrel, influenced by potential supply disruptions in Venezuela and Iran [7]. - The rise in crude prices has benefited the ETF, particularly as two of its top holdings are major oil companies, Chevron and ConocoPhillips, which have seen significant stock price increases this year [8][15]. Group 4: Dividend Growth - Chevron has increased its dividend by 4%, marking 39 consecutive years of growth, with a compound annual growth rate of 6% over the last five years, significantly higher than the S&P 500's 5% [11]. - ConocoPhillips has a current dividend yield of 2.9% and increased its dividend by 8% late last year, aiming for dividend growth within the top 25% of S&P 500 companies [13][14]. - Both companies are expected to continue increasing their dividends, with Chevron projecting over 10% annualized growth in free cash flow through 2030 and ConocoPhillips anticipating an additional $7 billion in annual free cash flow by 2029 [14].

One of the dominant early themes of 2026 has been the return of non-tech stocks. Investors have started to think twice about the potential impact of the AI boom and have begun rotating into more defensive and value-oriented areas of the market. That shift has also benefited dividend stocks in a big way. Strategies that involve long-term dividend growth aren't necessarily exciting, but under conditions where investors take risk off the table, they can, well, pay dividends. Where to invest $1,000 right now ...

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) has seen a significant increase of 14.7% in value early in the year, outperforming the S&P 500, which only rose by 1.3% [1] Investment Characteristics - The ETF offers a high yield of 3.5%, which was over 4% at certain points last year, and has a low expense ratio of 0.06%, equating to $6 for every $10,000 invested [2] - It is unique in being 100% invested in stocks, focusing on sectors with industry-leading companies that prioritize returning capital to shareholders through dividends [3] Sector Allocation - A substantial 54.6% of the ETF is allocated to the energy, consumer staples, and healthcare sectors, compared to only 17.6% in the S&P 500 [4] - The energy sector constitutes 19.9% of the ETF and has been outperforming the S&P 500 in 2026, while technology and communications sectors have faced minor sell-offs [6] Diversification and Holdings - The ETF is heavily concentrated in large-cap stocks, with approximately 90% of its investments in companies with market caps of at least $15 billion, ensuring a well-balanced portfolio across industry leaders [7]

Core Viewpoint - JPMorgan Equity Premium Income ETF (JEPI) offers an attractive yield of 8.21% through monthly distributions, but this comes with trade-offs that retirees should consider, particularly in terms of growth potential and income stability [1]. Investment Strategy - JEPI generates its yield by holding approximately 120 large-cap stocks and selling call options on these positions, which provides immediate income but limits upside potential during strong market rallies [1]. - The fund has a total asset size of $41.5 billion and includes high-quality stocks such as Johnson & Johnson, Alphabet, and Microsoft, which contribute to its stability [1]. Performance Comparison - Over the past year, JEPI returned 8.49%, significantly lagging behind the S&P 500's 13.47% gain, highlighting the inherent trade-off of the covered call strategy [1]. - In contrast, Schwab U.S. Dividend Equity ETF (SCHD) achieved a return of 17.49% by focusing on quality dividend payers without capping upside through options [1]. Income Variability - Monthly distributions from JEPI fluctuate based on market conditions, with recent payments ranging from $0.33 to $0.54 per share, creating challenges for retirees with fixed expenses [1]. - Although JEPI has never missed a payment since its inception in May 2020, the variability in distributions can complicate budgeting for essential expenses [1]. Portfolio Role - JEPI is best utilized as part of a diversified retirement income strategy rather than as a standalone investment, ideally paired with dividend growth funds to balance current income and long-term growth potential [1]. - The fund has a reasonable expense ratio of 0.35%, which is favorable for an actively managed strategy, and its size provides operational stability [1].

Core Insights - Vanguard High Dividend Yield ETF (VYM) and Schwab U.S. Dividend Equity ETF (SCHD) are both designed for dividend-focused investors, with VYM having a lower expense ratio and SCHD offering a higher yield and concentrated portfolio [1][2] Cost & Size Comparison - Both VYM and SCHD have an expense ratio of 0.06%, but VYM is slightly more affordable with a 0.04% expense ratio [3][4] - As of February 9, 2026, VYM has a 1-year return of 20.77% and a dividend yield of 2.33%, while SCHD has a 1-year return of 18.20% and a dividend yield of 3.51% [3][4] Performance & Risk Analysis - Over a 5-year period, VYM has a maximum drawdown of 15.83% compared to SCHD's 16.86% [5] - An investment of $1,000 would grow to $1,616 in VYM and $1,409 in SCHD over the same period [5] Portfolio Composition - SCHD holds 101 stocks with significant allocations in energy (19%), consumer defensive (18%), and healthcare (18%), featuring major positions in companies like Lockheed Martin, Texas Instruments, and Chevron [6] - VYM has a broader diversification with 589 holdings, focusing on financial services (21%), technology (18%), and healthcare (13%), with top holdings including Broadcom, JPMorgan Chase, and Exxon Mobil [7] Investor Considerations - Dividend investors prioritize consistent payouts, especially during market volatility, making the choice between VYM and SCHD significant based on individual investment strategies [8]

Investment Strategy Shift - In 2026, investors have shifted focus from growth stocks and high-powered tech companies to dividend stocks, indicating a change in investment strategy [1] Market Performance - The S&P 500 has risen by less than 2% since the start of the year, while the Roundhill Magnificent Seven ETF, which includes top tech stocks, is down more than 3% [2] - Dividend stocks have outperformed the market recently, with the iShares Select Dividend ETF and Schwab U.S. Dividend Equity ETF both showing significant gains [2] iShares Select Dividend ETF - The iShares Select Dividend ETF is up 10% and focuses on U.S. companies that have paid dividends for at least five years, providing reliable income investments [3] - The ETF holds around 100 stocks, with Seagate Technology as its top holding, accounting for just under 4% of the portfolio, and Seagate's stock has risen more than 50% year to date [4] - The ETF yields around 3.4%, significantly higher than the S&P 500 average of 1.1%, with an expense ratio of 0.38% [5] Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF has performed even better, up 13% this year, benefiting from high-performing stocks like Lockheed Martin and Texas Instruments, each making up over 4% of the ETF [6] - Both Lockheed Martin and Texas Instruments have seen stock increases of more than 25% for the year [6]