"The Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD) is a terrific ETF for investors who want to bet on the broad markets with more of an emphasis on high-quality dividend payers. Still, I think the SCHD is more suitable for those income investors out there who view the 4% yield range as their sweet spot. Arguably, the 4% yield level marks a good balance between dividends and capital gains."
"If you can afford to downgrade your yield to upgrade your dividend-growth prospects, you should probably go for it, at least in my humble opinion. The Vanguard Dividend Appreciation ETF ( NYSEARCA:VIG) is a great dividend growth ETF that's arguably even more popular than the SCHD. The low-cost Vanguard ETF doesn't have a fat dividend yield, which currently sits at just shy of 1.7%."
SCHD delivers roughly a 4% yield by emphasizing high-quality dividend payers, presenting a balance between dividend income and capital gains. The ETF fits income investors targeting that yield sweet spot while some investors prefer greater capital appreciation or dividend growth instead. VIG focuses on dividend growth with a lower yield near 1.7% and constituents that have raised payouts for at least ten consecutive years. VIG has produced stronger five-year capital gains than SCHD and holds a Morningstar gold rating while tracking the S&P U.S. Dividend Growers Index.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]