VIG vs. SCHD: The Better Dividend ETF Might Be the One With the Lower Yield
There are far more important factors to consider when choosing between these two funds than just the yield.
Overview
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) checks all the boxes that investors would want in a dividend ETF. It screens dividend stocks for high-quality balance sheets, above-average yield, and dividend growth history. It's one of the very few funds that considers all three of these factors in a single strategy.
The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) takes a simpler approach. It targets large-cap stocks with 10+ consecutive years of annual dividend growth while avoiding the highest-yielding stocks to help limit risk.
Details
Both are reasonable long-term strategies, but they definitely produce different portfolios with different risk profiles and different results. So which is the better choice? Let's dive in and find out.
Source
Originally published at www.fool.com.
Related Articles
- Greg Abel Committed $6.8 Billion to Homebuilders Like Lennar, Increasing Berkshire's Stake by 30%, Even as Mortgage Rates Sit Near 7.5% and Builder Sentiment Hits Multi-Year Lows. Is This Bold Conviction or a Costly Miscalculation?
- Thinking About Buying 10-Year Treasury Notes Yielding 5.3% Instead of Dividend Stocks Like Coca-Cola? Consider These 3 Factors First.
- How Nvidia, Micron and a surprising jobs report drove last week's stock action