Marcos Milla
Former Analyst at the Federal Reserve, ETF/Stock Newsletter Author
Pairing the Schwab US Dividend Equity ETF with a growth ETF such as the Schwab US Large-Cap Growth ETF or Vanguard Information Technology ETF should do very well long term, perhaps beating the Vanguard S&P 500 ETF with more tilt toward the Schwab growth fund. The dividend fund's dividend growth compounds at an 8-10% annual rate with upside, while the growth fund adds high capital appreciation. In the past week the dividend fund was flat while the growth fund rose over 7%. x.comÂ
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
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
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
Low-cost growth ETFs can build serious wealth through exposure to the best companies and strongest trends, without managing individual stocks. A clean setup is a core of VOO or VTI, a growth tilt through SCHG, VUG or QQQM, and an aggressive tech tilt through VGT. The ranking is SCHG, VUG, QQQM, SPYG, VGT, MGK, then IWF, which is solid but costlier. Many overlap, so owning all adds little diversification, and growth-heavy funds can be hit hard by rising rates, tech selloffs or rotation to value. … Show more
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
ETFs are a phenomenal starting point for new investors because they diversify, have delivered great historical returns and teach how markets move. New investors rarely find a 10x stock right away, and even if they do, they usually lack the conviction and emotional control to hold it. With money in broad funds such as S&P 500, Nasdaq-100, total-market, growth, value and dividend ETFs, they can spend their time studying companies and raising income to contribute more each month. x.comÂ