Marcos Milla
Former Analyst at the Federal Reserve, ETF/Stock Newsletter Author
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
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
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
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
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
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
The Global X SuperDividend ETF is a silly product that works well as a short to hedge long positions. Simply buying the world's highest-yielding dividend stocks is virtually guaranteed to underperform in almost all market conditions because of adverse selection. The fund has produced essentially zero total return, dividends included, over 15 years of a raging bull market. The short won't pay off in every rolling 12-month period, but it does in most. x.com x.com x.comÂ
Hormel Foods offers a dividend yield above 5% as a Dividend Aristocrat trading below 15x earnings, which could reward patient investors if growth rebounds. It is one of four high-yield picks chosen to avoid sucker yields, alongside VICI Properties, Ladder Capital and a global utility fund. x.comÂ
The S&P 500's record-low dividend yield is bullish and helps explain why the index keeps ripping higher. Tech is now close to 40% of the index, and companies that can turn a dollar of investment into three dollars of growth have little reason to pay it out as a dividend. x.comÂ
Dividend growth stocks have quietly outperformed the S&P 500 for decades, making Broadcom, Visa, S&P Global, Costco, Mastercard, Texas Instruments, Microsoft, PepsiCo, Starbucks and NVIDIA ten to buy and hold forever. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
