Pepe Invests
Retail Investor, Stocks, Real Estate, AI & Bitcoin
Schwab US Dividend Equity ETF pays more to live on in retirement than an S&P 500 fund. At its 12.93% annualized total return since 2011, $500 a month from age 25 to 62 grows to about $4.41 million, and its 3.46% yield then pays about $152,000 a year without selling a share. The same plan in Vanguard's S&P 500 ETF builds a bigger $6.17 million pile but pays only about $73,000 a year in dividends. x.comÂ
The Schwab U.S. Dividend Equity ETF can generate meaningful passive income. Holding 20,000 shares at roughly a $0.25 quarterly dividend would pay about $5,000 every quarter without effort, enough income for some people to retire on. x.comÂ
The Schwab US Dividend Equity ETF's dividend growth is underrated and can make it a stronger income investment than high-yield funds. A 3.5% yield growing 8-10% a year could become far more powerful than an 8-10% yield ETF with no dividend growth. Income can beat inflation, and spending the dividend leaves no NAV erosion, so principal keeps growing. x.com x.comÂ
SCHD, the Schwab U.S. Dividend Equity ETF, is great for passive income in retirement but not for wealth accumulation, which makes it a poor choice over the S&P 500 for a child's long-term portfolio. As @1031ent notes, young holders also have to pay taxes on its dividends. x.com x.comÂ
The Schwab U.S. Dividend Equity ETF is having a massive year while providing steady passive income. Boring investments held for the long term are how wealth gets built. x.comÂ
Pairing dividend-growth stocks with large-cap growth stocks can speed up retirement: owning dividend-growth stocks alone supports retiring at 60, while adding growth stocks could allow retiring in your 40s. x.comÂ
Schwab US Dividend Equity, JPMorgan Nasdaq Equity Premium Income, Vanguard S&P 500 and NEOS S&P 500 High Income together deliver monthly cash flow without selling shares, while SCHD and VOO add growth. The four-ETF portfolio produces almost $48,000 a year of passive income, with a goal of $80,000 by 2028. It is one piece of a wider portfolio, with rental real estate handling growth and tax efficiency. x.com x.com x.comÂ
Quality dividend stocks look like a great place to be over the next few years as the crowded tech trade unwinds. Per @PeterBerezinBCA, in the early dotcom bust tech crashed while the rest of the market rose, so the hedge for stocks was other stocks. A quality dividend basket holds old-economy, cash-generative businesses at sane multiples, while the index hides 50% of its weight in names at 10 times sales. That outweighs a general dislike of dividends as inefficient, taxable compounding. x.com … Show more
The S&P 500 is one of the best long-term investments, giving instant diversification across 500 of the largest US companies in one low-cost, tax-efficient fund. The index has returned about 10% a year on average with dividends reinvested, its dividend has grown about 7% a year over five years, and it has rallied back from nearly every crash or downturn, supporting steady dollar-cost averaging. x.comÂ
OVL can be one of the best monthly dividend ETFs of all time because it pays double-digit income without capping S&P 500 upside. It holds VOO as its core and earns income from defined-risk put spreads on the index rather than covered calls; its yield rose from about 3.5% to over 10% as it began paying out more option premium. Since January 2020 it returned 196% versus VOO's 178%. It shines in bull and flat markets but adds complexity and can underperform in severe crashes. x.com x.comÂ
The NEOS S&P 500 High Income ETF suits investors who want cash income over capital appreciation. $400,000 in it could generate about $4,200 a month in distributions, versus about $347 a month from the Vanguard S&P 500 ETF. Both may deliver a similar total return of around 12%, one through more income and the other through more price appreciation. Critics such as @Budgetdog_ note the payout comes from a covered-call strategy that caps upside and may partly return capital. x.com x.comÂ
