Many retirees dream of building an investment portfolio large enough that they can simply live off the dividends and income it generates. That usually requires a diverse set of holdings across equities, fixed income and alternatives, such as real estate. The rate environment for fixed income has improved substantially over the past few years. Yields of 4% are still available on risk-free Treasury bills. Investment-grade corporate bonds are offering yields of nearly 5%. Venture further out on the risk spec ...

There was a time when dividend stocks were as popular with retail investors as any type of equity investing. In fact, after the twin wealth-destruction periods of 2000-2003 and 2007-2009, many bruised investors shied away from growthier names, barely wanting to touch stocks at all. Fast-forward to 2025, and the script has clearly flipped. The largest U.S. dividend-focused ETF, the Schwab US Dividend Equity ETF (SCHD) has $70 billion in assets under management. That pales in comparison to scores of growth ...

Market Overview - The S&P 500 Index has increased approximately 3.7% in September, leading to a year-to-date gain of 13% [1] - The Federal Reserve has implemented its first rate cut of 2025 in September, with expectations for two additional cuts this year [1] Economic Forecast - The U.S. economy is projected to grow by 1.9% in 2023 and 1.8% in 2026, slightly above previous estimates but still below recent trends [4] - Stronger-than-expected economic activity in Q3 is attributed to tech investment, with private sector activity and defense spending anticipated to be stronger than earlier forecasts [4] Consumer and Corporate Sentiment - Consumer confidence remains weak due to job security concerns and inflation, while corporations face uncertainty from changing trade policies [5] - Rising debt burdens and stringent immigration policies are adding pressure on consumers, impacting overall sentiment [5] Investment Strategy - A conservative investment approach is recommended for the upcoming quarter due to market fragility and potential for negative developments to unsettle markets [6] - Preserving capital and cushioning against volatility is essential for navigating this uncertain period [7] Defensive Investment Options - Increasing exposure to consumer staple ETFs can provide stability and balance in portfolios, with suggested funds including Consumer Staples Select Sector SPDR Fund (XLP), Vanguard Consumer Staples ETF (VDC), and iShares U.S. Consumer Staples ETF (IYK) [9] - Dividend-paying securities are highlighted as reliable income sources during market volatility, with recommended ETFs such as Vanguard Dividend Appreciation ETF (VIG), Schwab US Dividend Equity ETF (SCHD), and Vanguard High Dividend Yield Index ETF (VYM) [11][12] - Quality and value funds, along with volatility ETFs like iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), are suggested for investors seeking defensive options [13]

Core Insights - The Vanguard Dividend Appreciation ETF is highlighted as a strong investment option for those seeking growing dividend income, emphasizing the reliability of cash flows in companies that pay dividends [1][10] - Historical data indicates that reinvested dividends have significantly contributed to the total returns of the S&P 500 Index, accounting for 85% of cumulative returns since 1960 [2] Performance Metrics - The Vanguard Dividend Appreciation ETF has a low expense ratio of 0.05%, translating to an annual cost of $5 for every $10,000 invested [5] - Recent performance averages for the ETF are as follows: - 3 years: 16.01% - 5 years: 12.69% - 10 years: 13.24% - 15 years: 12.79% - The ETF currently offers a dividend yield of 1.7%, compared to the S&P 500's yield of 1.2% [5][6] Dividend Growth - The ETF tracks the S&P US Dividend Growers Index, focusing on companies that have increased dividends for at least 10 consecutive years, suggesting potential for dividend growth at a rate faster than the S&P 500 [6] - Historical quarterly dividend payments show significant growth, with the dividend amount increasing from $0.288 in 2013 to $0.938 in 2025, more than tripling over 12 years [6] Top Holdings - The ETF includes approximately 330 holdings, with notable top stocks and their respective yields and weights: - Broadcom: 0.65%, 5.94% - Microsoft: 0.64%, 4.82% - JPMorgan Chase: 1.81%, 4.04% - Apple: 0.44%, 3.74% - Eli Lilly: 0.80%, 2.76% - Visa: 0.70%, 2.69% - ExxonMobil: 3.52%, 2.38% - Mastercard: 0.52%, 2.33% - Johnson & Johnson: 2.93%, 2.04% - Walmart: 0.91%, 2.01% [7] Growth Potential - Some companies within the ETF, like Broadcom, exhibit high dividend growth rates, with a 10-year average annual growth rate exceeding 30%, indicating potential for substantial share-price appreciation [8] Investment Considerations - When selecting a dividend-focused ETF, investors should weigh the importance of high yields versus fast-growing yields, with alternatives like the Schwab U.S. Dividend Equity ETF also being viable options [9] - The Vanguard Dividend Appreciation ETF is recommended for those seeking solid dividend income that is expected to grow over time, with a suggestion to invest incrementally rather than attempting to time the market [10]

Core Insights - The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) is designed to provide broad exposure to the small-cap blend market segment and was launched on July 25, 2013 [1] - DGRS has accumulated over $366.14 million in assets, positioning it as an average-sized ETF within its category [5] - The ETF seeks to match the performance of the WisdomTree U.S. SmallCap Quality Dividend Growth Index, which focuses on small-cap dividend-paying stocks with growth characteristics [5] Fund Characteristics - DGRS has an annual operating expense ratio of 0.38%, which is competitive within its peer group [6] - The ETF offers a 12-month trailing dividend yield of 2.57% [6] - The fund's top 10 holdings account for approximately 115.61% of its total assets under management, indicating a concentrated investment strategy [8] Performance Metrics - As of August 22, 2025, DGRS has experienced a year-to-date loss of approximately -2.82% but is up about 1.16% over the past year [9] - The ETF has traded between $40.64 and $56.61 in the last 52 weeks [9] - DGRS has a beta of 1.06 and a standard deviation of 20.94% over the trailing three-year period, categorizing it as a medium-risk investment [10] Alternatives and Market Position - DGRS is positioned as a reasonable option for investors looking to outperform the small-cap blend segment, but there are alternative ETFs available [11] - Notable alternatives include iShares Core Dividend Growth ETF (DGRO) with $33.27 billion in assets and Vanguard Dividend Appreciation ETF (VIG) with $94.44 billion [12] - DGRO has a lower expense ratio of 0.08%, while VIG has an expense ratio of 0.05%, making them potentially more attractive options for cost-conscious investors [12]

Core Viewpoint - The U.S. economy is showing signs of weakness, leading investors to seek stable income through dividend stocks and funds due to uncertainty from trade policies [1] Economic Indicators - Federal Reserve Governor Michelle Bowman is considering three interest rate cuts this year in response to the economic slowdown, with tariffs expected to have a one-time effect on price increases [2] - Monetary policy adjustments may lead to a short-term spike in inflation, but easing the policy rate is deemed necessary to prevent labor market weakness [3] Investment Strategies - Dividend investing remains a popular strategy amid market volatility, providing consistent income rather than dramatic price appreciation [4] - Dividend aristocrats, which are blue-chip companies with a history of increasing dividends, act as a hedge against economic uncertainty and offer downside protection [5] - High-dividend equities are appealing in a low-rate environment, as they can offset potential capital losses [7] ETF Recommendations - Vanguard Dividend Appreciation ETF (VIG) focuses on companies with a record of increasing dividends, charging 5 bps in fees [9] - SPDR S&P Dividend ETF (SDY) tracks high-yielding S&P constituents with a history of consistent dividend increases, charging 35 bps in fees [10] - Vanguard High Dividend Yield ETF (VYM) includes companies with above-average dividend payouts, charging 6 bps in fees and yielding 2.61% annually [11] - First Trust Rising Dividend Achievers ETF (RDVY) targets companies with a history of paying dividends, charging 48 bps in fees and yielding 1.42% annually [13]

Core Insights - The WisdomTree International Hedged Quality Dividend Growth ETF (IHDG) is designed to provide broad exposure to developed market companies while neutralizing currency fluctuations against the U.S. dollar [1][6] - The fund has amassed over $2.4 billion in assets, making it one of the larger ETFs in the Broad Developed World ETFs category [5] - The ETF has an annual operating expense ratio of 0.58% and a 12-month trailing dividend yield of 2.62% [7] Fund Management and Strategy - Managed by WisdomTree, IHDG seeks to match the performance of the WisdomTree International Hedged Quality Dividend Growth Index [5] - The ETF employs a smart beta strategy, focusing on stock selection based on fundamental characteristics to enhance risk-return performance [3][4] Performance Metrics - The ETF has a return of approximately 5.06% and has increased by about 5.36% year-to-date as of August 11, 2025 [10] - IHDG has a beta of 0.72 and a standard deviation of 14.06% over the trailing three-year period, indicating medium risk [11] Holdings and Sector Exposure - The fund's top 10 holdings account for approximately 123.65% of its total assets under management, with the U.S. dollar comprising about 87.4% of total assets [8][9] - The ETF's diversified nature helps minimize single stock risk, with around 300 holdings [11] Alternatives and Market Position - IHDG may not be suitable for investors seeking to outperform the Broad Developed World ETFs segment, with alternatives like iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG) available [12][13] - DGRO has $32.82 billion in assets and an expense ratio of 0.08%, while VIG has $93.56 billion and an expense ratio of 0.05% [13]

Core Viewpoint - The article emphasizes the importance of dividend stocks as a reliable income source amid economic uncertainty, highlighting the Schwab U.S. Dividend Equity ETF (SCHD) as a top choice for investors looking to add dividend-paying investments to their portfolios [1][9][11]. Summary by Sections Dividend ETFs Overview - Not all dividend ETFs are created equal, with significant differences in performance and underlying indices [3][4]. - The Vanguard High Dividend Yield ETF (VYM) and SPDR S&P Dividend ETF (SDY) both yield just under 2.6%, but VYM has outperformed SDY by approximately 40% over the past five years [4]. - The Schwab U.S. Dividend Equity ETF (SCHD) has a trailing yield of 3.9%, but has underperformed compared to VYM and SDY [5]. Performance Analysis - The Vanguard Dividend Appreciation ETF (VIG) has been the best performer over the past five years, focusing on consistent dividend growth with a trailing yield of 1.65% [7][8]. - SCHD is highlighted as a smart investment choice due to its potential for reversal in performance trends favoring value stocks over growth stocks [11][12]. Market Conditions and Predictions - Current market conditions are shifting from a growth stock environment to one favoring value stocks, which benefits dividend-paying stocks [11][14]. - Economic factors such as inflation, trade uncertainties, and labor issues are contributing to predictions of below-average returns for the U.S. stock market, with expected annual growth rates between 3.3% and 6% over the next decade [17][18]. Investment Strategy - Investors are encouraged to consider reallocating their portfolios towards dividend-paying value investments, as cash dividends may become increasingly valuable in a stagnant market [16][18]. - A gradual shift towards favoring dividends and value stocks is anticipated, suggesting that proactive adjustments to investment strategies may be beneficial [19][20].

Core Insights - The ProShares Russell 2000 Dividend Growers ETF (SMDV) is designed to provide broad exposure to the Style Box - Small Cap Value category and was launched on February 3, 2015 [1] - The fund has accumulated over $643.67 million in assets, making it an average-sized ETF in its category [5] - SMDV seeks to match the performance of the Russell 2000 Dividend Growth Index, targeting companies that have increased dividend payments for at least 10 consecutive years [5] Fund Characteristics - The annual operating expenses for SMDV are 0.40%, which is competitive within its peer group [6] - The ETF has a 12-month trailing dividend yield of 2.68% [6] - The fund has a beta of 0.83 and a standard deviation of 19.57% over the trailing three-year period, indicating medium risk [10] Sector Exposure - The ETF has the highest allocation in the Financials sector, comprising approximately 32% of the portfolio [7] - The top three sectors also include Industrials and Utilities [7] - Spartannash Co (SPTN) is the largest individual holding at about 1.31% of total assets, with the top 10 holdings accounting for approximately 9.4% of total assets [8] Performance Metrics - SMDV has experienced a loss of about -2.99% year-to-date and a gain of approximately 0.91% over the past year as of August 7, 2025 [10] - The fund has traded between $58.95 and $75.88 in the past 52 weeks [10] - With around 108 holdings, SMDV effectively diversifies company-specific risk [10] Alternatives - Other ETFs in the same space include iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG), with assets of $32.68 billion and $93.36 billion respectively [12] - DGRO has a lower expense ratio of 0.08% compared to SMDV, while VIG has an expense ratio of 0.05% [12]

Core Insights - The ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) offers investors exposure to the Mid Cap Value category and has accumulated over $1.8 billion in assets, making it an average-sized ETF in its category [5][6]. ETF Overview - Smart beta ETFs, like REGL, aim to outperform traditional market-cap weighted indexes by focusing on non-cap weighted strategies based on fundamental characteristics [2][3]. - REGL seeks to match the performance of the S&P MidCap 400 Dividend Aristocrats Index, which includes companies that have increased dividend payments for at least 15 consecutive years [5]. Cost and Performance - REGL has an annual operating expense ratio of 0.40% and a 12-month trailing dividend yield of 2.29% [6]. - The ETF has gained approximately 3.58% year-to-date and 7.58% over the past year, with a trading range between $72.71 and $88.79 in the last 52 weeks [10]. Sector Exposure and Holdings - The ETF has a significant allocation in the Financials sector, comprising about 32.2% of the portfolio, followed by Industrials and Utilities [7]. - The top 10 holdings account for approximately 20.85% of total assets, with Evercore Inc - A (EVR) being the largest at 2.81% [8]. Risk Profile - REGL has a beta of 0.78 and a standard deviation of 16.51% over the trailing three-year period, indicating a medium risk profile [10].