Core Insights - Seeking Alpha is recognized as a popular platform for dividend investors to research and select funds or equities that meet their income and appreciation needs [1] Group 1 - The Schwab U.S. Dividend Equity ETF is highlighted as a significant investment option for value investors [1] - The author has a background in private credit and commercial real estate mezzanine financing, indicating a strong foundation in financial analysis [1] - The author has experience working with top commercial real estate developers, which may provide valuable insights into market trends and investment opportunities [1]

Key Points Companies must meet certain dividend and earnings criteria to be included in the Schwab U.S. Dividend Equity ETF (SCHD). SCHD has averaged a 3.35% dividend yield over the past five years. Investors should lean into the power of compound earnings to help reach the needed mark. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › It's one thing to work for your income, but the real beauty comes when you can earn money without lifting a finger -- otherwise known as passive inco ...

Core Insights - Not all investors prioritize high-growth stocks; many seek investments that provide reliable passive income [1] - As investors age, the appeal of steady income sources increases, allowing for reinvestment of dividends to build wealth over time [2] - High-yield dividend ETFs may be preferable to individual high-yield stocks to avoid potential value traps [3] Investment Options - The Schwab U.S. Dividend Equity ETF (SCHD) offers a yield of 3.9% and has a low expense ratio of 0.06%, making it attractive for income-focused investors [5] - This ETF tracks the Dow Jones U.S. Dividend 100 Index, which employs strict criteria to avoid unsustainable high-yield stocks, focusing on metrics like free cash flow to total debt ratio and return on equity [6] - The index is reconstituted annually, ensuring that only companies meeting its standards remain, with 20 new stocks added and 17 removed last year, including Pfizer due to increased debt from an acquisition [7] - The Schwab U.S. Dividend Equity ETF has delivered a 12.2% average annual return since its inception in October 2011 [7] Market Context - High-yield ETFs can provide a reliable income stream for retirees, with the Schwab U.S. Dividend Equity ETF helping to mitigate the risk of value traps [8] - The Alerian MLP ETF also offers a high yield, with MLPs currently at low valuations and showing strong growth potential and improved balance sheets [8]

This ETF pays an attractive and steadily rising stream of passive dividend income.Generating passive income is a big part of my investment strategy. It provides me with more cash to invest and helps me become more financially independent. I've found that investing in exchange-traded funds (ETFs) is a great way to complement my passive income investment strategy. One of my favorite ETFs to buy for income is the Schwab U.S. Dividend Equity ETF (SCHD 0.85%). Here's why I plan to buy even more of the high-yield ...

Key Points The Schwab U.S. Dividend Equity ETF holds 100 high-quality dividend stocks. It holds stocks based on several dividend quality characteristics, including yield and dividend growth rate. The fund pays a high-yielding and steadily rising dividend. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the largest dividend-focused exchange-traded funds (ETFs). It has become a magnet for income-focused investors, in part ...

Key Points The Schwab U.S. Dividend Equity ETF tracks an index of roughly 100 companies that seem financially healthy and have been increasing their dividend payouts. It has delivered double-digit gains, on average, over the past five and 10 years. It's a great way to be quickly diversified with lots of dividend payers (and growers). 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Do you want decades of passive income? Of course you do -- who wouldn't want cash just arriving at yo ...

This ETF is made up of many time-tested, high-quality companies.One reason I'm a fan of dividend exchange-traded funds (ETFs) is that they combine two of my favorite parts of investing: guaranteed income and ETFs. Stock price appreciation is great and undoubtedly appreciated, but it's nice to own dividend stocks and know you'll get rewarded regardless of the stock's price movements.And ETFs are great because they allow you to cover a lot of ground and check many investing boxes with just a few investments. ...

Core Insights - The article discusses the importance of generating steady income through investments for retirement, highlighting various ETFs that can provide higher yields and potential upside compared to the Schwab U.S. Dividend Equity ETF [1][2]. Group 1: Vanguard Dividend Appreciation Index Fund ETF (VIG) - VIG tracks the S&P U.S. Dividend Growers Index, investing in 337 stocks with a history of increasing dividends for at least 10 years, featuring a low expense ratio of 0.05% and a quarterly dividend yield of 1.59% [3][4]. - The fund's largest sector allocation is in information technology (27.30%), followed by financials (22.20%) and healthcare (15.20%), with top holdings including Broadcom, Microsoft, and Apple [4]. - VIG has achieved an average annual return of 12.83% over the past decade, with a cumulative 3-year return of 54.60% and a 5-year return of 89.46%, making it a strong performer in the market [5]. Group 2: Vanguard High Dividend Yield Index Fund ETF (VYM) - VYM focuses on high dividend yield stocks, holding 566 stocks for greater diversification, which may dilute returns but also reduce volatility, making it suitable for retirees [6][7]. - The fund offers a higher yield of 2.47% compared to VIG, with a lower concentration in technology stocks [7]. Group 3: JPMorgan Equity Premium Income ETF (JEPI) - JEPI employs covered call options to generate a dividend yield of 7.24% with monthly distributions, providing an alternative income strategy for retirees [7].

Core Insights - Exchange-traded funds (ETFs) provide investors with exposure to a diversified basket of stocks and can also pay dividends, making them suitable for different investment strategies based on age and financial goals [1][2] Group 1: Dividend ETFs for Retirees - Dividend ETFs are particularly beneficial for retirees as they generate annual income and offer diversification [2] - The Schwab U.S. Dividend Equity ETF (SCHD) aims to track the Dow Jones U.S. Dividend 100 Index, with an expense ratio of 0.06% and a return of 33% over the past five years, while maintaining a trailing-12-month dividend yield of nearly 3.8% [3][4] - The portfolio of SCHD includes large-cap stocks across various sectors, providing solid diversification, with defensive stocks like Coca-Cola and Pepsi, and healthcare companies such as AbbVie and Merck [4][5] Group 2: Bond ETFs for Older Investors - As investors age, they tend to shift towards bonds to preserve their savings, with the Vanguard Intermediate-Term Bond ETF (VBIIX) fitting this strategy by tracking the Bloomberg U.S. 5-10 Year Government/Credit Float Adjusted Index [7][8] - VBIIX has an expense ratio of 0.03% and has experienced a 16% loss over the past five years due to rising interest rates, but it has maintained a trailing-12-month dividend yield of approximately 3.9% [9][10] - The ETF's portfolio consists of over half in U.S. government bonds, with 20% in corporate BBB bonds and 17% in A-rated bonds, indicating a focus on stability and safety [10][11]

Core Insights - The article discusses two ETFs, Schwab U.S. Dividend Equity ETF and SPDR Portfolio S&P 500 High Dividend ETF, which together provide a strong income stream and potential for dividend growth [2][10]. ETF Overview - Schwab U.S. Dividend Equity ETF focuses on 100 stocks that have increased dividends for at least a decade, excluding REITs, and uses a market-cap-weighted system [3][5]. - SPDR Portfolio S&P 500 High Dividend ETF invests in the 80 highest-yielding stocks in the S&P 500, employing an equal-weight methodology [6][7]. Performance Metrics - Schwab U.S. Dividend Equity ETF has a current yield of 3.8% and an expense ratio of 0.06% [4][5]. - SPDR Portfolio S&P 500 High Dividend ETF has a yield of 4.4% and an expense ratio of 0.07% [4][9]. Investment Strategy - Combining both ETFs allows investors to cover a broader range of dividend opportunities, as Schwab U.S. Dividend Equity ETF avoids REITs while SPDR Portfolio S&P 500 High Dividend ETF includes them [10][11]. - A 50/50 split between the two ETFs can help achieve a target yield of approximately 4% for dividend investors [11].