Schwab US Dividend Equity ETF (ARCA: SCHD)

Ultime notizie per Schwab US Dividend Equity ETF (ARCA:SCHD)

Schwab US Dividend Equity ETF

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Utilities

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Dividend 100 Index. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles. It is modified market capitalization weighted.

Lockheed Martin Corp

Abbvie Inc.

Home Depot Inc/The

Blackrock Inc.

Amgen Inc.

Cisco Systems, Inc.

Coca Cola Co.

Texas Instruments Inc

Chevron Corporation

Pfizer, Inc.

Bristol-Myers Squibb Co

Verizon Communications Inc Common Stock Usd 0.1

Pepsico Inc.

Conocophillips Co

Altria Group Inc.

Merck & Co. Inc.

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La community online si interroga sull&#39;affidabilità dell&#39;ETF: strategia vincente a lungo termine o rischio di concentrazione eccessiva?

SCHD: un investimento sicuro per 20 anni? Ecco cosa risponde Reddit

Amid persistent geopolitical uncertainty, global stocks and funds with a strategic focus on high dividends are experiencing a significant resurgence in investor interest. This expert highlights the top three stocks and funds that investors could consider to seize the opportunity.
What Happened: After two years of subdued demand, these funds are once again drawing substantial inflows, driven by a confluence of economic factors, most notably the elevated interest rates maintained by the Federal Reserve.
As highlighted by Eugenia Mykuliak, the founder and executive director at B2PRIME Group, the renewed popularity of dividend-yielding instruments was reflected in April 2025 fund flow data. The equity income ETFs recorded an impressive $4.9 billion in net flows.
Industry leaders such as the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and Vanguard Dividend Appreciation Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) have been at the forefront of this trend.
&#8220;Donald Trump&#8216;s calls for lower rates and the Fed&#8217;s reluctance, which kept rates high, are the principal rationales here. As we know, high interest rates make bonds less attractive, prompting investors to shift towards dividend-paying stocks,&#8221; Mykuliak told <a href="https://www.benzinga.com">Benzinga</a>.
Mykuliak points to compelling examples citing Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>), Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), and BP PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>). &#8220;C-bond dividend yields offered by companies like Kroger (~9.4% dividend yield), Chevron (4.78%), and BP (6.59%) appear to be competitive so far,&#8221; she highlighted.
This data underscores that dividend yields are currently either close to or, in many cases, significantly higher than the 10-year Treasury bond yield of 4.37%, making them a more attractive proposition for income-seeking investors.
&#8220;So current dividend yields remain competitive relative to long-term government bonds, particularly for high-quality dividend stocks,&#8221; Mykuliak states.
Furthermore, Mykuliak highlights that &#8220;geopolitical tensions (most notably, tariffs) and economic uncertainty make dividend stocks a safer investment.&#8221;
Looking ahead, the momentum for dividend stocks is expected to persist. Mykuliak reiterates, &#8220;Once again, the Fed&#8217;s stance amid overall economic uncertainty tilts toward keeping interest rates high, making dividends more attractive.&#8221;
See Also: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/07/46653560/bitcoin-ethereum-ripple-have-big-money-moment-as-expert-sees-incremental-institutional-buyers-driving-current-rally">Bitcoin, Ethereum, Ripple Have &#8216;Big Money&#8217; Moment As Expert Sees &#8216;Incremental Institutional Buyers&#8217; Driving Current Rally</a>
Why It Matters: &#8220;All in all, dividend stocks are strategically positioned to benefit from 2025's macroeconomic landscape, offering higher yields than bonds and greater stability than growth stocks,&#8221; Mykuliak concludes.
She advises investors to &#8220;prioritize high-quality, diversified dividend portfolios (tapping into the ETF universe for convenience, bearing in mind, for example, SCHD, VIG) to capitalize on this trend while mitigating the known risks.&#8221;
However, she cautions investors to be aware of potential risks, including dividend cuts and the possibility of current economic uncertainty escalating into a more severe slowdown, which could potentially temper future inflows.
Price Action: Here&#8217;s how the stocks and ETFs mentioned by Mykuliak have performed.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETFs</td>
<td>One-Month Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>)</td>
<td>2.47%</td>
<td>7.10%</td>
<td>10.78%</td>
</tr>
<tr>
<td>Vanguard Dividend Appreciation Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>)</td>
<td>2.18%</td>
<td>7.31%</td>
<td>11.03%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Stocks</td>
<td>One-Month Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>)</td>
<td>-0.38%</td>
<td>15.37%</td>
<td>31.85%</td>
</tr>
<tr>
<td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>8.14%</td>
<td>5.54%</td>
<td>-1.12%</td>
</tr>
<tr>
<td>BP PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>)</td>
<td>7.58%</td>
<td>7.58%</td>
<td>-7.89%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Friday. The SPY was up 0.17% at $638.16, while the QQQ advanced 0.35% to $568.37, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 
Image Credit: RYAN MERCER/NORTHJERSEY.COM via Imagn Images

These 3 Dividend-Yielding Stocks Could Outperform As High Fed Rates Spark $4.9 Billion Inflows: Expert

With rate cut hopes hogging the limelight, <a href="https://www.benzinga.com/etfs">dividend-based ETFs</a> might finally be experiencing their comeback time.
Investors are growing fond of high-yielding equity plays such as the Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>) and Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), as new labor market reports spark bets on a pivot by the Federal Reserve. With the bond market already <a href="https://www.benzinga.com/markets/equities/25/07/46228695/wall-street-today-sp500-bitcoin-price-trump-vietnam">pricing in a rate reduction through September</a>, and another likely in December, the old advantage of fixed-income yield may be waning, highlighting dividend-paying stocks again.
The catalyst? <a href="https://www.benzinga.com/markets/economic-data/25/07/46218795/labor-market-payrolls-june-interest-rates">Wednesday&#8217;s ADP employment report</a>, which revealed private employers lost 33,000 jobs in June, a surprising miss that represented the first contraction in more than two years. The steep drop fanned hopes the Fed will have to loosen policy ahead of schedule. 
Dividend ETFs are likely to sparkle when interest rates decline and investors look for defensive growth with regular cash flows. With inflation more-or-less stable and employment growth slowing (first monthly contraction since March 2023), SCHD and VYM look like the Goldilocks choices — neither too risky nor too dull.
Also Read: <a href="https://www.benzinga.com/etfs/new-etfs/25/07/46246602/aots-new-sofl-etf-doubles-down-on-software-stocks-for-active-tech-traders">AOT&#8217;s New SOFL ETF Doubles Down On Software Stocks For Active Tech Traders</a>
<h1 class="wp-block-heading">Why It Matters</h1>
SCHD and VYM tilt toward stable, cash-surplus companies in sectors like consumer staples, healthcare and financials. They go for businesses that usually perform better in soft-landing or late-cycle situations.
In Thursday trading, SCHD crept 0.15% higher and VYM gained 0.6%, small moves that might hide a larger rotation underway in the background.
Read Next: 
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Photo: NicoElNino via Shutterstock

Specialty ETFs

Trading Ideas

ETFs

Soft US Jobs Report, Rate Cut Hopes May Bring Dividend ETFs Back In Style

Amid uncertain times in the market, the flow of <a href="https://www.benzinga.com/etfs">investments into ETFs</a> is revealing a split in portfolio strategies, one that goes beyond just asset allocation and taps into the very behavior of investors. 
The contrast between the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and the Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) shows a key change in how market players are positioning themselves for today's economic situation: some are doubling down on long-term growth, while others are tilting towards quality income-generating assets.
Also Read: <a href="https://www.benzinga.com/etfs/new-etfs/25/06/45882575/this-new-etf-aims-to-turn-gamestops-wild-moves-into-cash">This New ETF Aims To Turn GameStop&#8217;s Wild Moves Into Cash</a>
<h1 class="wp-block-heading">VOO's Long-Term Growth Thesis</h1>
VOO, which tracks the returns of the S&amp;P 500 index, has pulled in more than $65 billion in inflows year-to-date as of May 30, including a staggering $21 billion just in April, according to a report by Zacks Research. 
At the end of the first quarter, total assets in the ETF were $1.3 trillion. With total assets now beyond $1.3 trillion, VOO has claimed the title of the largest ETF in the world. This shows a growing preference among investors for low-cost, broad-market exposure. 
What's causing this influx isn't just VOO's remarkably low expense ratio of 0.03%, but also a renewed faith in mega-cap tech stocks and growth sectors that dominate the S&amp;P 500.
Investors seem to be taking tariff threats and policy fluctuations in stride. Ongoing cycles of proposed trade restrictions show that they are considering the events as chances to "buy the dip," a behavior in line with historical trends.
<h1 class="wp-block-heading">SCHD Retains Core Dividend-Focused Base</h1>
While SCHD hasn't experienced inflows on the same scale, it still enjoys attention from investors, especially those focused on income and risk aversion. As of today, SCHD's assets are around $70 billion, buoyed by a <a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45532640/schd-the-dividend-etf-turning-quiet-compounding-into-long-term-wealth">4% trailing 12-month dividend yield</a> and a remarkable 13-year history of <a href="https://www.benzinga.com/quote/SCHD/dividends">consistent dividend payments</a> and growth. 
SCHD specializes in quality metrics such as return on equity, free cash flow to debt and a decade-long consistency in dividends, making it a more value-driven choice. Its sector allocation leans toward industrials, healthcare and consumer staples, which cushion the portfolio during turbulent times.
<h1 class="wp-block-heading">Growth Seekers Vs. Yield Builders </h1>
The widening gap between VOO and SCHD speaks of two very different investor mindsets. 
VOO investors are all about long-term capital growth, keeping fees low and enjoying full market exposure. They typically embrace an "accumulate and hold" approach, often reinvesting dividends automatically to take advantage of compounding returns.
On the flip side, SCHD investors are more into current income generation and capital preservation. This group often includes retirees or conservative investors who want to settle into stability. 
<h1 class="wp-block-heading">Recession Protection Vs. Bull Market Participation </h1>
Over the past decade, a $10,000 investment in VOO has more than tripled to over $33,000, while SCHD has reached around $27,000, assuming dividends were reinvested. However, SCHD has typically experienced smaller losses during market downturns, thanks to its defensive sector focus and its avoidance of REITs and non-dividend-paying stocks.
Additionally, SCHD's 100% Qualified Dividend Income (QDI) <a href="https://www.schwabassetmanagement.com/resource/schwab-etfs-qualified-dividend-income-qdi-2024#:~:text=Last%20updated:,0225%2DYFFK">status </a>in 2024 gives it a tax efficiency moat, making it especially likeable for taxable accounts. VOO's QDI is also impressive at 97.33% in 2025, primarily due to its minimal exposure to REITs, however, there is a clear winner in this area.
<h1 class="wp-block-heading">A Shift Toward Barbell Portfolio Construction? </h1>
More and more investors, VOO and SCHD aren't seen as opposing choices but rather as complementary options. There's a growing trend toward "barbell" strategies, which combine high-growth investments with dependable dividend income to reduce downside risk while still allowing for upside potential. 
As financial markets steer around ongoing policy-driven fluctuations, the differences between these two ETFs may become even more pronounced, providing insight into how various investor profiles are reshaping the concept of "passive" investing in 2025.
Read Next: 
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Broad U.S. Equity ETFs

VOO Or SCHD? Your ETF Pick Says More About You Than You Think

As global growth forecasts dim and trade tensions rattle markets, <a href="https://www.benzinga.com/money/best-dividend-stocks-to-buy-and-hold">high-dividend stocks</a> are stealing the spotlight. The OECD just <a href="https://www.benzinga.com/markets/equities/25/06/45752680/global-growth-forecast-cut-taco-and-blind-money-support-the-stock-market">slashed its U.S. GDP outlook</a> to 1.6% for 2025 from 2.2%, citing persistent policy uncertainty and trade friction. 
That's prompted investors to sharply pivot toward dividend payers—names that offer predictable income when price action gets erratic.
In an environment where the S&amp;P 500 <a href="https://www.multpl.com/s-p-500-dividend-yield/table/by-year">yields</a> a tepid 1.28%, cash-generating stalwarts with robust balance sheets and fat dividends are in high demand. Historically, dividend-paying stocks have outpaced non-payers by more than 2x in average annual returns, and June 2025 is shaping up to be no exception.
Read Also: <a href="https://www.benzinga.com/Opinion/25/06/45754902/under-the-radar-why-low-profile-dividend-stocks-could-be-your-best-asset">Under the Radar: Why Low-Profile Dividend Stocks Could Be Your Best Asset</a>
Here are three high-yield stocks &#8211; and one ETF &#8211; that are standing out in this market:
<h2 class="wp-block-heading">Realty Income Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) – Yield: 5.77%</h2>
The monthly payout machine continues to deliver, with 659 straight dividend checks and a rock-solid 75% AFFO payout ratio. 
Realty Income's <a href="https://www.realtyincome.com/sites/realty-income/files/2025-05/Quarterly_Investor_Presentation-Q1_2025.pdf">$23 billion</a> in first-quarter acquisition opportunities and A-rated credit make it a defensive pick as tariff negotiations linger.
<h2 class="wp-block-heading">Enterprise Products Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>) – Yield: 6.89%</h2>
Energy's volatility hasn't fazed this pipeline operator. Its fee-based model and <a href="https://ir.enterpriseproducts.com/news-releases/news-release-details/enterprise-reports-first-quarter-2025-earnings">$6 billion</a> in 2025 projects support a generous yield, without the commodity price drama. A steady cash-flow engine for income seekers.
<h2 class="wp-block-heading">OneMain Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMF#NYSE">OMF</a>) – Yield: 8.02%</h2>
With a 9.69% gain over the past month alone, OneMain Holdings blends high yield with capital appreciation. Its strong balance sheet gives investors confidence amid uncertain economic signals.
<h2 class="wp-block-heading">Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) – Yield: 3.96%</h2>
Prefer a hands-off approach? 
SCHD offers a diversified path to income with a 4% yield and holdings boasting 8.4% dividend growth over the past five years. It's a popular pick for those avoiding stock-specific risk.
As markets climb but face lingering macro uncertainty, income-focused strategies are staging a strong comeback. For investors looking to shield their portfolios while still collecting steady cash, these dividend leaders offer exactly that &#8211; without needing to call the market&#8217;s next move.
Read Next: 
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Dividends

High-Yield Stocks Flex Muscle As Growth Outlook Fades: 4 Dividend Plays To Watch In June

In the age of meme stocks, moonshot tech plays, and crypto quick wins, it might seem out of character for a young investor to get excited about Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), or Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), or a <a href="https://www.benzinga.com/etfs">dividend ETF</a> that doesn't promise to 10x your money overnight.
But a revolution is quietly cooking in the portfolios of Gen-Z&#8217;ers and Millennials who follow the FIRE philosophy — Financial Independence, Retire Early. And large part of this movement is a tactic your financial advisor&#8217;s father may have suggested: dividend growth investing. In that context, Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is emerging as a solid contender for <a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45532640/schd-the-dividend-etf-turning-quiet-compounding-into-long-term-wealth">passive income investing</a>.
Let&#8217;s explore the mood further. SCHD has a low 0.06% expense ratio, pays a 4% dividend yield, and owns stalwarts such as Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), and Coca-Cola. The fund is tightly rules-based, emphasizing only those firms with 10 years of dividend payment, good fundamentals, and heavy trading volume.
And that&#8217;s what attracts FIRE followers. The emotional roller coaster involved in pursuing meme tickers and &#8220;to the moon&#8221; mania is bound to lose charm, and young investors are constructing long-term portfolios intended to accumulate wealth quietly, sustainably, and with little drama.
The Philosophy 
FIRE is not about instant wealth. It&#8217;s about working hard, investing harder, and retiring earlier than the conventional age of 65-70, on a self-directed, passive income stream robust enough to pay for everything.
Dividend growth investing checks all the boxes: It offers compounding income from quarterly payments, less volatility than high-beta growth stocks, protection against inflation as dividends rise with time, and sector diversification without the drudgery of selecting individual stocks.
And SCHD? It does it all, no Reddit forum necessary.
A Financial Workhorse
With assets of more than $67 billion and an average daily volume of more than 15 million shares, it&#8217;s a big player in the dividend ETF universe. Its top 10 holdings, such as Lockheed Martin, Cisco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), and Verizon, are among the most financially secure U.S. corporations. And its built-in guardrails, such as a sector exposure cap (no more than 25%) and focus on return on equity (29.06% as of April 30), prevent it from crossing into dangerous territory.
Even during periods of market volatility, SCHD&#8217;s performance has been robust due to its mix of consumer staples, healthcare, and energy exposure. It&#8217;s not cool, but it&#8217;s reliable. And in a FIRE portfolio, that is a superpower.
Final Thought
In an era where financial news streams are dominated by AI chip makers and blockchain soap operas, SCHD is working its magic behind the scenes, assisting investors in achieving their objectives one dividend check at a time. For the next generation pursuing financial independence, and not merely flashy charts, it might be just the turtle that outpaces all the hares on the track.
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Image created using artificial intelligence via Midjourney.

CSCO

From Meme Stocks To Mature Moves: Why SCHD Might Be A Good Bet For Young Investors For Passive Income Power

As the investing universe is hot on the trail of AI unicorns and meme-driven moonshots, there&#8217;s a more subtle approach quietly making investors millionaires — one dividend check at a time. 
<a href="https://www.benzinga.com/etfs">Dividend growth investing</a> isn&#8217;t glamorous. It won&#8217;t illuminate Reddit forums or fuel CNBC arguments. But for investors intent on creating lasting, long-term wealth, especially for retirement, it could be the wisest thing you can do.
Individual dividend stocks may be temperamental. Earnings misses, company-specific risk or dividend reductions can upset your income stream. ETFs, however, package up several dividend-growing companies, spreading out risk and leveling out returns. And when it comes to getting dividend growth done correctly, the Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is at the front of the line.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/05/45528747/this-corner-of-the-etf-market-is-about-to-explode-to-2-trillion">This Corner Of The ETF Market Is About To Explode To $2 Trillion</a>
<h1 class="wp-block-heading">The Case For Dividend Growth</h1>
Dividend growth investing targets those companies that steadily grow their payments year in and year out. It&#8217;s not merely about receiving yield, it&#8217;s about seeing that yield build as your investment quietly grows in the background.
In the long term, this strategy provides a unique trifecta: increasing income, appreciation in capital and reduced volatility versus non-dividend stocks. Even better, it provides protection against inflation, which makes it perfect for long-term financial objectives such as retirement.
<h1 class="wp-block-heading">SCHD: The MVP Of Dividend Growth ETFs</h1>
Among the expanding world of dividend-oriented ETFs, SCHD is a standout with its steadiness and resilience in the face of a burst of newer arrivals and market phenomena like stock splits.
Dividend Yield: 3.9%
Expense Ratio: A mere 0.06%
Top Holdings: Coca-Cola Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>), Cisco Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), and Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>).
SCHD follows the Dow Jones U.S. Dividend 100 Index, choosing only those companies with no less than 10 years of dividend increases, solid financials, and compelling yields.
Its quality-control focus, such as return on equity (average 29%) provides an extra layer of protection during downturns. And with a sector breakdown divided among energy (21%), consumer staples (19%), and healthcare (16%), SCHD balances growth with resilience.
<h1 class="wp-block-heading">Is There A Catch?</h1>
Naturally, even SCHD isn&#8217;t bulletproof.
Its concentration risk is something to consider. Its top 10 holdings <a href="https://www.schwabassetmanagement.com/products/schd">constitute </a>4% of the fund on an average. While not a cause for concern, it may make risk-averse investors consider more diversified ETFs like the Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>), though it provides slightly less yield at 1.8%.
And then there&#8217;s the macro risk: economic slowdowns might pinch earnings and, by proxy, dividend increases. But SCHD&#8217;s concentration in solidly financed firms puts it in a better position to weather any softening than the typical fund.
<h1 class="wp-block-heading">Final Thoughts: Boring Is Beautiful</h1>
SCHD isn&#8217;t a roller coaster, but it&#8217;s not meant to be. It&#8217;s the workhorse of your financial stable.
For investors who want long-term compounding, increasing income, and an element of protection from chaos, SCHD is as close as the market comes to a &#8220;set it and semi-forget it&#8221; strategy.
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Photo: Shutterstock

SCHD: The Dividend ETF Turning Quiet Compounding Into Long-Term Wealth

Investors are turning to dividend stocks to guard their portfolios against market volatility amid trade wars and recession risks. Data from <a href="https://www.spglobal.com/spdji/en/documents/research/research-sp500-dividend-aristocrats.pdf">S&amp;P Global </a>shows that from Dec. 29, 1989, through the end of February, the S&amp;P 500 Dividend Aristocrats outperformed the S&amp;P 500 in 66.67% of the months when the broader index posted a loss.
A few days ago, a dividend investor <a href="https://www.reddit.com/r/dividends/comments/1jxqcdg/finally_reached_1m_4km_income_update_on_the_story/">shared</a> his income report and investing journey on r/Dividends, a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor on the social platform showed his monthly dividend income was roughly $3,960. The investor, around 40, said he started investing at the age of 20.
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&nbsp;"At the time I never took it seriously and just putting in like 20-50$ a month," he said. "I ‘seriously' started at around 23-24 when I was putting in approx, 300$ on average (that was a huge for me back then), and now averaging at around 2-2.5k per month."
The investor said while it's difficult to see his portfolio suffering declines amid the current market environment, he's playing the "long game" and believes stocks will eventually go in a positive territory.&nbsp;
The investor said he's never been a "big spender" and has expenses of about €700 a month. He lives in Europe where cost of living is not "that high," he wrote.
"Other than that we have two old cars (20 and 15 years) &#8211; included in above expenses. We don't wear fancy clothes or spend money on impressing others (this can cost you a fortune)," he added.&nbsp;
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Let's take a look at some of the key dividend stocks in his portfolio.
Schwab U.S. Dividend Equity ETF&nbsp;
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>).&nbsp;
JPMorgan Equity Premium Income ETF&nbsp;
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options.&nbsp;
Ares Capital&nbsp;
Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>), a business development company, was one of the top stocks in the investor&#8217;s portfolio. He earned $1,920 in annual dividends from the stock.
Public Storage&nbsp;
Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>) is a California-based REIT that operates self-storage facilities. The stock has a dividend yield of 4.1%. BofA Securities recently <a href="https://seekingalpha.com/news/4433284-public-storage-extra-space-storage-upgraded-on-positive-self-storage-reits-sector-view">upgraded</a> the stock to Buy from Neutral and raised its price target to $368 from $349.
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SPDR S&amp;P 500 ETF Trust&nbsp;
With a 1.2% dividend yield, SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) provides investors exposure to the broader US market. The investor made $1,218 in annual dividends from his investment in the fund.&nbsp;
Altria Group
Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) has a dividend yield of about 7%. The tobacco giant accounted for about $800 in annual dividend income for the investor, according to the screenshots he shared on the social media platform.&nbsp;
PepsiCo Inc
Beverage giant Pepsi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) has <a href="https://www.google.com/search?q=pepsi+dividend+increase+consecuitve+years&amp;oq=pepsi+dividend+increase+consecuitve+years&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIJCAEQIRgKGKABMgkIAhAhGAoYoAEyCQgDECEYChigATIJCAQQIRgKGKABMgcIBRAhGI8CMgcIBhAhGI8C0gEINTgxN2owajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8">increased</a> its dividends for over 50 consecutive years. The company recently reported first-quarter earnings that missed Wall Street estimates while revenue beat expectations. The stock yields 4%.&nbsp;
Johnson &amp; Johnson
Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is one of the most reliable dividend stocks, having raised its payouts for 63 <a href="https://www.investor.jnj.com/news/news-details/2025/Johnson--Johnson-Announces-63rd-Consecutive-Year-of-Dividend-Increase-Raises-Quarterly-Dividend-by-4-8/default.aspx">consecutive</a> years. The stock is up 8% so far this year. The company recently <a href="https://seekingalpha.com/news/4431340-johnson-johnson-projects-400m-tariff-impact">flagged</a> a $400 million hit related to President Donald Trump's tariffs.
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ARCC

JEPI

40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others'

When markets become moody, alternating between panic and euphoria, dividend stocks tend to offer a rare type of peace: predictability. For decades, they&#8217;ve provided a mix of income and stability that even the most flashy growth stocks can&#8217;t. And in that dividend-rich jungle, the Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is an <a href="https://www.benzinga.com/etfs">ETF kingpin</a>.
Let's talk receipts. Since its launch in 2011, SCHD has delivered total returns of 203%. That's not just "good-for-an-ETF" good—that's "maybe-I-should-rethink-my-investment-strategy" good. Along the way, it has consistently raised its dividend, even as markets fluctuated through pandemics, inflation tantrums and meme-stock mania.
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What's the secret sauce? SCHD holds a curated lineup of 100 high-quality, dividend-paying U.S. stocks. We're talking Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and Altria (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>)—dividend legends, not one-hit wonders.
SCHD&#8217;s SEC 30-day yield is at 4.01%. That&#8217;s high. 
For perspective, as of 2015, <a href="https://www.benzinga.com/quote/SCHD/dividends">SCHD&#8217;s typical yield has stuck around 3%</a>, and before 2022, it rarely broke through that. Yet here we sit, with a yield comparable to high-yield savings accounts—albeit many times more intriguing in the near future. Why? Because HYSAs don&#8217;t have to contend with compounding. SCHD&#8217;s does.
The Catch
Well, like everything in life (and finance), there is a trade-off. SCHD&#8217;s price has been hit in 2025, down close to 6% year-to-date and 9.5% in the last six months. Its increasing yield is partly due to declining prices. But long-term investors look at that as a signal to buy. Particularly those in pursuit of not only current yield but yield on cost (return/yield based on original cost and not current market price).
Projecting forward, SCHD could offer a yield on cost of over 14% in 10 years, assuming its current growth pace holds. The math makes a compelling case for SCHD as a long-term income generator.
Low Fees, High Value
At a mere 0.06% expense ratio, SCHD isn&#8217;t only generous with dividends, it&#8217;s also notoriously cheap on fees. That leaves more cash where it belongs: in your wallet.
3 Other Dividend ETFs Worth Watching
If SCHD is the class valedictorian of dividend ETFs, here are two other top-of-the-class performers that deserve honorary degrees:
Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>)
VYM targets U.S. businesses with higher-than-average dividend payouts and owns 589 holdings, so it&#8217;s more diversified than SCHD. Its current 30-day SEC yield is approximately 2.67%, and it has a bargain-basement expense ratio of only 0.06%. 
iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>)
DVY goes the old-fashioned route, with a preference for utilities and industrials—your grandfather&#8217;s portfolio, but without the &#8220;old&#8221; part. It yields more than 3.7% and invests in stocks with a solid five-year history of paying dividends. With more than 100 holdings, it&#8217;s slightly more focused than VYM but offers a different sector bias that can complement a dividend portfolio. Expense ratio is 0.38%.
Bottom Line
While SCHD remains a standout stock for dividend growth, including VYM and DVY can add valuable diversity to your income strategy. Each provides something distinct in the way of dividend exposure—either more yield, defensive sector exposure, or longer-term consistency.
So if your portfolio needs a little less drama and a little more cash, consider making these dividend ETFs a permanent fixture at the table. Slow and steady wins the race—particularly when it pays you every quarter.
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Photo: Shutterstock

iShares Dow Jones Select Dividend Index Fund

SCHD Is Down, But Its Dividend Is Up And These 2 ETFs Are Quietly Catching Up

Many investors start their journey by buying <a href="https://www.benzinga.com/25/03/44565770/30-year-old-with-65k-in-stocks-sparks-debate-focusing-mostly-on-etfs-but-now-betting-on-bonds-small-caps-and-international-plays">stocks</a> they like, chasing dividends, or diversifying across various assets, only to later realize their portfolio needs a serious overhaul.
Whether it's portfolio allocation, dividend investing, or <a href="https://in.benzinga.com/25/03/44553948/investor-with-640k-portfolio-aims-for-early-retirement-hoping-to-retire-in-5-years-or-less-but-faces-tough-choices-reddit-weights-in">early retirement</a> planning, the right strategy depends on clear financial goals. There are investors who hunt for high-yield <a href="https://in.benzinga.com/personal-finance/25/03/44551261/early-retiree-making-17000-a-year-in-dividends-shares-top-7-stock-picks-says-ive-zero-regrets">dividends</a> while others prioritize growth, only to find that their holdings are too scattered or underperforming.
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One such investor, a 36-year-old with a $253,542 stock portfolio has recently turned to Reddit for advice. Despite his substantial holdings, he earns just $4,200 in annual dividends and admits his investments are &#8220;all over the place.&#8221;
&#8220;I feel like my portfolio is all over the place. I certainly don't feel I'm getting $4,000 annual dividends either. How would you restructure all this? Have no clear goals, but I'd like to retire early from work burnout,&#8221; he wrote.
His portfolio leans heavily into S&amp;P 500 ETFs like Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and tech stocks like Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), and Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), but commenters noted overlap, inefficiency, and low yield as major issues. His post sparked intense discussion, with many Redditors pointing out overlapping ETFs and a lack of focus in his strategy.
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Investor With $253,000 In Stocks And Only $4.200 In Dividend Income Asks For Redirection–Reddit Delivers
Consolidate Overlapping ETFs and Ditch Underperformers
Many commenters pointed out that VOO and SPY track the same index, making one redundant, while others noted that individual stocks like Apple and Microsoft are already heavily weighted in his ETFs, creating unnecessary duplication.
&#8220;VOO and SPY are exactly the same thing, S&amp;P 500 index funds. You don&#8217;t need both. Your SPY is smaller than VOO, so sell SPY and put the money into VOO. You don&#8217;t need VOO/SPY and [Fidelity ZERO Total Market Index Fund (FZROX)] too. Since VOO has slightly outperformed FZROX, I would sell FZROX and put the money into VOO,&#8221; a Redditor advised.
Suggesting the poster trim speculative holdings, this commenter recommended a focus on long-term sustainable businesses or broad-market ETFs: &#8220;First of all, simplify by selling stocks from companies you don't know much about. If you're interested in a company and want to invest in them, just make sure they can last another 20 years in business. Second, if you're aiming now for a more long-term hold, try to even out the ETFs and dividends a little more.&#8221;
Also touching on the overlap, a Reddit user also mentioned the taxes the investor will need to pay if the dividend income is in a taxable account.
&#8220;Well, do you want to be in ETFs or individual stocks? You have overlap everywhere. Dividends are a waste since it is just your money being returned to you, and making a taxable event if these are in a taxable account. A lot of dead money in the Mikey market account,&#8221; he wrote.
&#8220;I don&#8217;t like this market, but I&#8217;d dump [Walt Disney (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>)]. Swap out [Advanced Micro Devices (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>)] for [Broadcom (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avgo#NASDAQ">AVGO</a>)]. Buy some [Cintas Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>)],&#8221; a comment reads.
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Don't Mix Dividends With Growth Blindly
Several Redditors argued that the poster is stuck between growth and income strategies, which is hurting his overall returns. Since he's only 36 years old, many suggested prioritizing growth now and shifting to dividends later.
&#8220;Read the Simple Path to Wealth and Bogle. Then stop chasing yield. You&#8217;re giving up valuable years of deep equity growth,&#8221; one Redditor advised.
Suggesting a focused approach on either pure growth or a dividend mix, a commenter mentioned two different ETFs and possible allocations.
&#8220;In my opinion, your 3 options are: 100% VOO, 100% [Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)], or 50/50 VOO/SCHD. Keep it simple. Pick one strategy and stick with it,&#8221; he said.
A Redditor touched on bonds, saying he doesn't think these assets are a good choice for a 36-year-old&#8217;s portfolio: &#8220;[Fidelity U.S. Bond Index Fund (FXNAX)] is a US bond fund. That&#8217;s the Boglehead influence. You don&#8217;t need bonds at 36 years old. Bonds aren&#8217;t going to grow your portfolio.&#8221;
&#8220;You&#8217;re young enough that you could simply buy VOO and nothing else for maximum returns and buy more dividends later, but if seeing a dividend amount returned every year motivates you, you could do SCHD as well,&#8221; a Reddit user recommended.&nbsp;
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Image: Shutterstock

AAPL

AVGO

CTAS

MSFT

NVDA

36-Year-Old With $253K In Stocks Says 'Need Some Direction' – Only Gets $4.2K Dividends And Reddit Is Losing It Over His Holdings

In today's unpredictable market, investors seeking high yields need to balance risk and reward carefully. With rising volatility, inflation concerns, and fluctuating interest rates, a well-diversified portfolio is crucial to sustaining durable income.
For income-focused <a href="https://in.benzinga.com/news/25/04/44709542/investors-just-poured-3m-into-this-whatsapp-job-app-for-hispanic-immigrants-and-its-already-helping-800-find-work">investors</a>, especially those nearing, or in retirement, capital preservation and <a href="https://www.benzinga.com/markets/25/02/43897884/dividend-investor-making-5-000-per-month-with-632-000-reveals-portfolio-it-takes-time-but-its-doable">dividend</a> sustainability are just as important as yield. A mix of low-volatility assets, tax-efficient strategies, and recession-resistant sectors can help counter market turbulence while delivering consistent cash flow.
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Reddit has witnessed this balance struggle in a post an investor has created. The 50-year-old poster has spent years building a high-yield portfolio in a brokerage account, but now his main goal is reliable monthly income without sacrificing the principal.
The investor is open to various asset classes such as stocks, bonds, real estate investment trusts, closed-end funds, and/or business development companies but wants to avoid yield traps and foreign stocks due to tax complications.
&#8220;I need durable income. [Ford Motor Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>)] is a no, it's a yield trap and has been for years. [Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)] and [Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schh#NYSE">SCHH</a>)] are great funds, but the yield is too low. I own SCHD in my growth portfolio but continue to sell some every year as I convert to income. Also want to diversify away from options. They are great for income but tend to fluctuate as supply/demand does in down markets,&#8221; he said.
His questions to Reddit investors are what high-yield – over 8% – stocks, ETFs, or funds can sustain payouts long-term, whether there are low-risk business development companies or closed-end funds that won't cut dividends in a downturn, and how can he further diversify beyond his current holdings.
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Redditors have offered a mix of ETF recommendations, individual stock picks, and broader portfolio strategies, so let&#8217;s dive into those.
<h2 class="wp-block-heading">Investor Seeks 8% or More High-Yield Holdings For Durable Income – Reddit Suggests Assets</h2>
Focus on High-Quality BDCs and CEFs for Steady Income
Several commenters recommended business development companies and closed-end funds as core holdings for high, sustainable yields.
&#8220;Two closed-end funds that I like a lot are [Eaton Vance Enhanced Equity Income Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eoi#NYSE">EOI</a>)] and [Eaton Vance Enhanced Equity Income Fund II (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eos#NYSE">EOS</a>)]. They have been around since 2005, have mostly favorable tax treatment on their distributions, and have had better total returns than [JPMorgan Equity Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jepi#NYSE">JEPI</a>)​] and [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jepq#NASDAQ">JEPQ</a>)​],&#8221; a commenter suggested.
Without adding anything else, this Redditor shared several assets for the investor to research: &#8220;[Ares Capital Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arcc#NASDAQ">ARCC</a>)], [Blue Owl Capital Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/obdc#NYSE">OBDC</a>)], [Blackstone Secured Lending Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bxsl#NYSE">BXSL</a>)], [Capital Southwest Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cswc#NASDAQ">CSWC</a>)], [Hercules Capital (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/htgc#NYSE">HTGC</a>)], [Barings BDC (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bbdc#NYSE">BBDC</a>)], [Bain Capital Specialty Finance (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bcsf#NYSE">BCSF</a>)], [Fidus Investment Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fdus#NASDAQ">FDUS</a>)], [Carlyle Secured Lending (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cgbd#NASDAQ">CGBD</a>)], [Sixth Street Specialty Lending (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tslx#NYSE">TSLX</a>)].&#8221;
&#8220;On the same boat (53 years old). Started late but trying to catch up with high-yield stocks. My stocks are: [Ares Capital Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arcc#NASDAQ">ARCC</a>)], [Main Street Capital Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/main#NYSE">MAIN</a>)​], OBDC, HTGC, [Realty Income Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/o#NYSE">O</a>)], [VICI Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vici#NYSE">VICI</a>)], [Altria Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mo#NYSE">MO</a>)], and [British American Tobacco (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bti#NYSE">BTI</a>)]. The last two are the best performers so far,&#8221; a Reddit user wrote.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
Consider Covered-Call ETFs for Tax-Efficient Monthly Income
Given the poster&#8217;s preference for tax-efficient income, several commenters highlighted covered-call ETFs as strong options.
&#8220;[Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwy#NASDAQ">KBWY</a>)], [VanEck Mortgage REIT Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mort#NYSE">MORT</a>)], [NEOS Nasdaq-100 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqqi#NASDAQ">QQQI</a>)], JEPQ, [Goldman Sachs Nasdaq-100 Core Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpiq#NYSE">GPIQ</a>)], [NEOS S&amp;P 500 High Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spyi#NYSE">SPYI</a>)], JEPI, [Goldman Sachs S&amp;P 500 Core Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gpix#NASDAQ">GPIX</a>)], and [NEOS Russell 2000 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/iwmi#NASDAQ">IWMI</a>)] are a few. They will probably stay lower during the current volatile cycle, but should do well long term I would think,&#8221; a commenter recommended.
A user mentioned a real estate investment trust option, noting that it pays around 9.5% yield and has a 0.50% expense ratio.
&#8220;Aside from the covered call funds like JEPQ, QQQI, [TappAlpha SPY Growth &amp; Daily Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tspy#NASDAQ">TSPY</a>)], and the like, there&#8217;s a [real estate investment trust] ETF from Hoya Capital called [Hoya Capital High Dividend Yield ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/riet#NYSE">RIET</a>)] with a 0.50% expense ratio that pays about a 9.5% yield and seems pretty steady.&#8221;
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Image: Shutterstock

Small Cap

BBDC

BCSF

BXSL

CGBD

CSWC

FDUS

GPIQ

GPIX

HTGC

NEOS ETF Trust NEOS Russell 2000 High Income ETF

IWMI

JEPQ

Powershares Kbw Premium Yield Equity Reit Portfolio

KBWY

MAIN

MORT

OBDC

QQQI

RIET

SCHH

SPYI

TSLX

TSPY

VICI

50-Year-Old Investor Craves 8%+ Yield, Snubs Ford, Chases Durable Dividends – 'I Am Willing To Consider Anything' For Monthly Income

Building wealth through <a href="https://www.benzinga.com/personal-finance/25/04/44804226/can-you-live-off-dividends-investor-pulls-500-month-from-178k-portfolio-i-feel-more-comfortable-this-way-with-these-6-stock-picks">dividends</a> isn&#8217;t an overnight success, but rather work that requires relentless discipline, patience, consistency, and the power of compounding. While many chase quick gains, the real magic happens when investors commit to a long-term <a href="https://www.benzinga.com/news/25/02/43901059/ray-dalios-holy-grail-investment-strategy-why-10-15-diversified-investments-could-make-you-a-fortune">strategy</a>, reinvesting dividends and steadily growing their portfolios over decades.
One investor&#8217;s recent milestone proves just that: a $1 million portfolio generating $4,000 a month in passive income, all starting from humble beginnings of just $50 a month.
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The investor, who is nearly 40 years old, shared on Reddit that he began his journey at 20 but only started taking investing seriously in his mid-20s. His early contributions were modest, around $20 to $50 a month, but over time, he increased his monthly investments to an average of $300, and now invests approximately $2,000 to $2,500 monthly.
Despite market volatility, he said he&#8217;s focused on the long game: &#8220;It's hard to see my portfolio plummeting, but I then remember myself I'm playing a long game. I'm not in a hurry, the administration will change and markets will become green eventually. They did in the past every single time.&#8221;
The investor's portfolio consists of a mix of ETFs, real estate investment trusts, and blue-chip dividend stocks. Let&#8217;s take a closer look at each holding, why investors favor them, and their current dividend yields.
Trending: It&#8217;s no wonder Jeff Bezos holds over $250 million in art — <a href="https://www.benzinga.com/money/masterworks">this alternative asset has outpaced the S&amp;P 500 since 1995, delivering an average annual return of 11.4%. Here&#8217;s how everyday investors are getting started.</a>
<h2 class="wp-block-heading">A $1 Million Portfolio Generating $4,000 a Month Dividend Income–Redditor Shares Top Holdings</h2>
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is a fan favorite among dividend investors because it tracks a high-quality index of U.S. companies with strong, consistent dividend payouts. It focuses on companies with solid fundamentals like high return on equity, low debt, and consistent growth. SCHD pays investors around 4.05% in dividend yield annually.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>)​ offers an attractive yield by combining blue-chip U.S. equities with an options overlay strategy that generates extra income. It's especially loved by retirees and income seekers who want stability and high cash flow without taking massive risks. JEPI generates around 7.88% in annual dividend yield.
Realty Income Corporation
Realty Income Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) is a real estate investment trust that owns commercial real estate leased to big, stable tenants like Walgreens and FedEx. It has a legendary track record of paying monthly dividends for over 25 years straight. O is beloved by income investors for its predictability and real estate-backed stability and pays approximately 5,68% in dividends per year.
Ares Capital Corporation
Ares Capital Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) is a business development company that lends to and invests in middle-market companies, earning high interest in return. Investors love ARCC for its high yield and consistent income, even if it comes with slightly higher risk. ARCC generates around 9,49% in dividends per year.
Public Storage
Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>) is the king of the self-storage real estate investment trusts, operating thousands of storage facilities across the U.S. PSA it's a favorite among long-term real estate investors because of its stable cash flow, low overhead, and high margins. The company pays investors approximately 4,13% in dividend income annually.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
SPDR S&amp;P 500 ETF Trust
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is the original S&amp;P 500 ETF, offering diversification across 500 of the biggest U.S. companies. It's not known for high yield, but investors hold it for long-term growth and market exposure. SPY generates approximately 1.33% in annual dividend yield.
Altria Group
Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) offers a sky-high yield and stable cash flow from its tobacco empire. Despite regulatory headwinds, it continues to generate enormous profits and share them with investors. Some also speculate on growth via its cannabis and nicotine-alternative investments. MO pays 7,06% in dividend income per year.
PepsiCo
PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) owns massive snack brands like Doritos, Quaker, and Lay's. Its diversified business model makes it recession-resistant, and it's a dividend aristocrat with over 50 years of dividend growth. Investors love its global reach, brand strength, and reliable, growing dividend payouts, which are now around 3,76% per year.
Johnson &amp; Johnson
Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is a healthcare titan with business lines in pharmaceuticals, medical devices, and consumer health products. It has one of the longest dividend growth streaks and is considered ultra-defensive. JNJ is a go-to for investors wanting both stability and a safe, growing income stream through dividends, which now sit at around 3.14% per year.
Verizon Communications
Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) provides essential telecom services, with a massive nationwide infrastructure and millions of customers. While growth is slow, its cash flows are enormous, and it pays a very generous dividend. VZ pays investors around 6,08% in dividends.
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Image: Shutterstock

From $50 A Month To $1M Portfolio — Investor Shares Top 10 Holdings, Says 'Finally Reached $1M!' Thanks To Relentless Discipline

It&#8217;s been a week since the <a href="https://www.benzinga.com/etfs">Schwab U.S. Dividend Equity ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) jumped 5.39% by afternoon in a surprise midday rally, up from an intraday low of $23.88 to a high of $25.79, before closing further up at $25.87. The price has remained elevated, albeit 1.7% lower than last Wednesday.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/04/44824711/etfs-for-the-brave-are-these-high-octane-funds-your-best-bet-to-ride-an-upward-market-">ETFs For The Brave: Are These High-Octane Funds Your Best Bet To Ride An Upward Market Swing?</a>
The spike, which caught traders off guard after a relatively quiet morning of April 9, suggested a potential surge of institutional buying or tactical reallocations—possibly tied to rebalancing or changing interest rate expectations.
While the specific volume figures have not yet been validated, the distinctive price action was noteworthy, particularly relative to key benchmarks such as the S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), both of which also had positive momentum that day. Neither one, however, even came close to SCHD&#8217;s stunning percentage increase.
Market observers suspect this action could be indicative of a wider value and dividend-rich stock rotation, as inflationary anxiety and interest rate uncertainty drive investors onto firmer ground. With mega-cap growth leaders such as Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Meta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) experiencing double-digit intraday gains, sentiment among ETFs was positive. However, SCHD&#8217;s strength could also be an indicator of something more profound: a reversion to fundamentals.
A Decade Of Discipline: Why SCHD Matters Now
While Wall Street weathers yet another round of tariff-induced volatility, investors yearn for consistency. Boasting a 3.96% SEC 30-day <a href="https://www.schwabassetmanagement.com/products/schd">yield</a>, dividend <a href="https://stockanalysis.com/etf/schd/history/">yield </a>of 4.09%, a sub-0.06% expense ratio, and a long-term value-oriented approach, SCHD has quietly established itself as a steady performer in trying times.
Following the Dow Jones U.S. Dividend 100 Index, SCHD filters for U.S. stocks with 10 or more years of unbroken dividend growth, sorting them by financial stability, cash flow health, return on equity and dividend track record. The outcome? A concentrated portfolio of dividend champions such as Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and Altria (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>)—names that have performed better than broader benchmarks through previous crises, including the 2008 meltdown.
Structure Built For Stability
SCHD&#8217;s durability is supported by its diversified strategy. Diversified over 103 holdings in seven sectors—financials (19%), healthcare (17%) and consumer staples (14%), the ETF is sector-diversified while remaining underweight in tech, which overhangs competitors such as the S&amp;P 500, where tech companies alone constitute almost 30%.
This conservative bias translates to a lower beta of 0.81 (a beta of less than 1 means lower vulnerability to volatility) and less downside risk. During previous downturns, staples sectors fell only 20% versus 30%+ declines in tech-heavy indexes, according to Money Morning. When Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell 17% earlier this year, SCHD remained steadfast, thanks to its sector capping (no sector >25%) and single-stock exposure limits (no stock >4%).
What&#8217;s Next?
SCHD&#8217;s performance will be shaped by the prospects of its current holdings. Among those with high upside potential are:
Inter Parfums (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPAR#NASDAQ">IPAR</a>)
Murphy Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUR#NYSE">MUR</a>)
Kforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KFRC#NYSE">KFRC</a>)
Conversely, some caution is perhaps justified with:
CNA Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNA#NYSE">CNA</a>)
The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>)
Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>)
Bottom Line
SCHD doesn&#8217;t pursue hype; it accumulates quietly through consistency. With $65.6 billion in assets and a 53% 5-year total return, it continues to provide a compelling combination of income, value and stability. Its dividend payout ratio of 61.07% and its 16.67% dividend raise last year highlight the fund&#8217;s power of income.
In a world where sentiment and speculation wildly fluctuate, SCHD is a north star for long-term investors because it provides not just peace of mind but reliable outcomes.
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Photo: Shutterstock

AMZN

IPAR

KFRC

The Dividend ETF That Just Woke Up And Why Investors Are Watching Closely

Investing in dividend-paying <a href="https://www.benzinga.com/markets/25/03/44196217/53-year-old-with-200k-to-invest-seeks-best-stocks-for-retirement-should-i-go-all-in-on-etfs-or-bet-b">stocks</a> has long been a cornerstone strategy for investors seeking both stability and <a href="https://www.benzinga.com/markets/25/02/43679558/how-this-39-year-old-with-no-college-degree-built-passive-income-streams-that-pay-18-000-per-month">passive income</a>.
Unlike high-growth stocks, which rely heavily on capital appreciation, <a href="https://www.benzinga.com/markets/25/02/43437228/dividend-investor-earning-over-10-000-a-month-shares-top-6-stock-picks-money-coming-without-working">dividend</a> stocks provide regular cash payouts, making them particularly attractive for those who prioritize consistent returns over speculative gains.
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Many investors, especially those approaching retirement or looking for lower-risk strategies, favor dividend stocks for several key reasons, such as predictable cash flow, lower volatility, compounding growth, and because they provide an inflation hedge.
A recent Reddit post highlights how even younger investors are incorporating dividends into their strategies. The poster, a 23-year-old with a $178,627 portfolio, shared that he is generating $6,286 annually in dividends, or about $500 per month. His holdings include a mix of ETFs and individual stocks, which balances his portfolio by providing both income and long-term growth potential.
He explains his preference for stability, stating, &#8220;I feel more comfortable this way.&#8221;
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Let's take a closer look at each of his current investments and why they might appeal to income-focused investors.
<h2 class="wp-block-heading">This Investor&#8217;s Assets Generate $500/Month From a $178K Portfolio</h2>
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) tracks high-quality U.S. dividend-paying stocks and has a history of consistent payouts and strong financial health. SCHD is a favorite among dividend investors because of its low fees and focus on companies with growing dividends. The company pays investors around 4.22% in dividends per year.
Realty Income Corporation
Realty Income Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) is known as "The Monthly Dividend Company," because it pays dividends on a monthly basis. O is a real estate investment trust that leases commercial properties, and due to its payment system, it is ideal for investors seeking frequent income. O generates a dividend yield of approximately 5,98% per year.
SPDR S&amp;P 500 ETF Trust
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is the largest and most traded ETF in the world. While not a high-yielder, SPY provides broad exposure to the S&amp;P 500, offering growth potential alongside modest dividends. It's a core holding for long-term investors. SPY pays investors 1.39% in annual dividends.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.55 per share now</a>.
PepsiCo
PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) is a global food and beverage giant, known for its main soda business as well as snacks. A Dividend Aristocrat, PEP has raised its payout for over 50 consecutive years. Its strong brand portfolio ensures steady cash flow. PEP generates around 3,75% in dividends per year.
Altria Group
Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) is a tobacco giant with a long dividend history. MO is often seen as a high-yield dividend play with consistent cash flows, which allows it to pay investors around 7,26% in annual dividends.
Crown Castle
Crown Castle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCI#NYSE">CCI</a>) is a real estate investment trust that owns and operates cell towers and fiber networks across the U.S., playing a major role in mobile and 5G infrastructure. Investors love CCI because it offers a mix of dividend income and exposure to the fast-growing communications infrastructure space. CCI generates approximately 6,61% in yearly dividends.
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<li>Inspired by Uber and Airbnb &#8211; Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets &#8211; <a href="https://www.benzinga.com/money/mode-mobile-2">with $1,000 you can invest at just $0.26/share!</a></li>
</ul>

Can You Live Off Dividends? Investor Pulls $500/Month From $178K Portfolio – 'I Feel More Comfortable This Way' With These 6 Stock Picks

<a href="https://www.benzinga.com/personal-finance/25/04/44658629/23-year-old-investor-with-75k-portfolio-1-8k-dividend-income-reveals-top-assets-asks-what-i-should-look-at-or-add-to-reddit-debates">Dividend</a> investing has long been a favored strategy for those seeking passive income and long-term <a href="https://www.benzinga.com/personal-finance/25/03/44348490/how-does-your-wealth-stack-up-against-your-peers-heres-the-net-worth-youll-need-to-be-among-the-">wealth</a> growth.
Unlike depending solely on capital appreciation, dividend-paying stocks and funds provide regular cash payouts, allowing investors to compound their returns by reinvesting dividends or using them to cover expenses. Many investors are drawn to dividends because they offer a tangible return, namely getting paid simply for holding shares.
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</ul>
A disciplined strategy that entails buying consistently, reinvesting dividends, often through dividend reinvestment plans, and holding for the long term can turn even modest monthly contributions into a notable income stream over time. This strategy, often called the &#8220;snowball effect,&#8221; leverages compounding to boost portfolio growth.
One investor who has adopted this method is a 34-year-old Reddit user who has grown his portfolio to $114,000 in just five years by investing as much as he could through a dividend reinvestment plan. In turn, his portfolio is now generating $700 to $800 in monthly dividends. His goal is to eventually live off his dividend income while continuing to grow his investments.
Trending: If there was a new fund backed by Jeff Bezos offering a <a href="https://www.benzinga.com/money/arrived-private-credit-fund">7-9% target yield with monthly dividends would you invest in it</a>?
The investor keeps this portfolio in a taxable brokerage account for flexibility, allowing him to access the dividends if needed, although he mentioned that wasn't the case so far.
&#8220;I&#8217;m planning on retiring in 15 years. My next goal is $1,000 a month. I'm in the process of growing a business and it would be nice to be able to pay a couple of bills with my dividends if I ever need to (hasn't happened yet). I'm much more likely to save and reinvest every month because I get paid every month, how fun is that? It doesn't have to be the most optimal but it's definitely great motivation to keep the snowball rolling,&#8221; he wrote on Reddit.
The investor's portfolio consists of three key ETFs, each offering a different mix of income and growth. Let&#8217;s take a closer look at each below.
<h2 class="wp-block-heading">From $0 to $114,000 in 5 Years: Breaking Down Investor&#8217;s Main 3 Dividend Holdings</h2>
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is a passively managed ETF that tracks the Dow Jones U.S. Dividend 100 Index. It focuses on high-quality U.S. companies with strong dividend histories and solid fundamentals like consistent cash flow and strong balance sheets. SCHD is loved by investors because it has a long-term performance, a low expense ratio, and a long, solid history. The ETF generates approximately 4.22% in dividend yield per year.
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JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) combines equity investing with an options overlay strategy. It holds U.S. large-cap stocks and writes covered calls to generate extra income. This creates a high-yielding, lower-volatility product while also maintaining some exposure to stock appreciation. It's ideal for investors seeking above-average yields with lower volatility than pure equity funds. JEPI pays investors around 8.14% in dividends per year.
JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>)​ is similar to JEPI but focused on Nasdaq-100 stocks. The ETF combines growth tech exposure with income generation through options strategies, making it riskier due to its tech concentration and shorter track record. JEPQ also uses covered calls for income, making it a high-yield ETF with exposure to growth sectors. Investors get paid around 11.94% in annual dividends.
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From $0 To $114K In 5 Years: 34-Year-Old Investor Says 'I Buy As Much As I Can Every Month' – Aims To Live Off Dividends, Shares Top 3 Picks

<a href="https://www.benzinga.com/25/03/44380933/investor-with-40000-portfolio-wonders-if-he-should-pick-dividend-investing-or-growth-first-would-you-prioritize-dividends-or-growth">Dividend investing</a> is often seen as a safer way to generate passive income, especially compared to high-growth but volatile <a href="https://www.benzinga.com/trading-ideas/25/02/43578212/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet-53">stocks</a>. Funds like Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>)​, or JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>)​ offer yields between 4% and 10%, meaning a $230,000 investment could theoretically produce around $766 to $1,900 per month.
Many investors, when approaching <a href="https://www.benzinga.com/personal-finance/25/02/43784108/millions-of-americans-could-get-up-to-1000-a-year-under-new-retirement-match-program">retirement</a>, start to consider balancing their portfolios so there&#8217;s a mix of security and growth, with more emphasis on security. But what happens when that retirement stability is threatened by something you have no control over even before you can create it?
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A 45-year-old investor is facing this exact difficulty: he has a tax-free payout coming with the option to take a $230,000 lump sum now or secure a pension of $800 per month, which would be indexed to inflation for life. He is considering taking a good part of the sum and investing it into assets that generate dividends but is wondering whether there are investments that will pay him the same sum the pension would.
&#8220;If I take $200,000 of that and shove it into mostly stuff that pays a dividend? How likely is it to produce as much as the fixed amount or more? I'm worried that I'll lock my money away and only end up getting a few hundred per month; I really need the dividend to help supplement my income,&#8221; he wrote on Reddit.
Reddit's finance-savvy commenters have jumped to the comment section to offer their recommendations and pieces of advice for the investor, so let&#8217;s see what they suggest.
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<h2 class="wp-block-heading">$230K Lump Sum Vs. Lifetime Pension: Reddit&#8217;s Finance-Savvy Commenters Weigh In</h2>
Take the Lump Sum
Many Redditors argued that taking the lump sum offers flexibility, whether for higher returns, legacy planning, or inflation protection.
&#8220;The value of cash in hand now is more valuable than the promise of cash in the future. If you&#8217;re ok with taking a little more active role in managing it, I&#8217;d say take the lump sum. Easily doable to earn +5% returns on it. Plus, whatever you don&#8217;t need you can reinvest and let it compound to grow it even faster,&#8221; a commenter advised.
Highlighting inflation risk, this Redditor also suggested the poster takes the lump sum: &#8220;At a 3% inflation rate, cash loses half its value in 24 years (rule of 72 &#8211; dividend 72 by the rate of inflation). The smart money takes the lump sum every time.&#8221;
A Redditor shared his real-life success story that started in a very similar way to the poster&#8217;s, saying that he took the lump sum, invested it, and is now enjoying $1,700 in dividend income, and has also seen principal growth.
&#8220;I was faced with a very similar scenario in life about 10 years ago. Had $200,000 coming as a lump sum or take $780 per month for life. After doing some math it was a no-brainer I took the money. After investing the money I was able to realize $800 a month in income at that time. The principal grew in addition to the income, and today in 2025 I have $1,700 a month in income from the same principal. Plus, the principal grew to over $360,000,&#8221; he shared.
See Also: Can you guess how many Americans successfully retire with $1,000,000 saved?<a href="https://www.benzinga.com/money/1milsaved"> The percentage may shock you</a>.
Dividend ETFs and Bonds Can Match or Exceed the Pension
Several commenters argued that a well-structured dividend portfolio could outperform the $800 per month pension, especially with current bond yields and high-dividend ETFs.
&#8220;If you take the $230,000 in lump sum and bury it in your backyard, you would be able to take $800 a month for just shy of 24 years. That&#8217;s without investing in anything. That puts you at 69 years old. If you invest it in some super safe bonds at 3%, take $800 a month and you will have ~$97,000 at the end of 30 years. Puts you at 75 years old. If you step up the risk and invest part of the money in dividend growth stocks as well as some bonds, then the probability goes up for either increasing the monthly withdrawals down the road or having more left when you pass,&#8221; a Redditor wrote.
Replying to the above comment, this user suggested that bonds alone could beat the pension: &#8220;I like that you put it out there like that for him. However, one thing I would like to point out, 4.625% is the 30-year bond rate right now. So that is $10,637.50 a year or $886.45 a month and still leaves you with the $230,000 at the end of it.&#8221;
&#8220;Take the $230,000 and put it in a dividend ETF that pays 4% to 5%. That&#8217;s $750 to $950/month-ish,&#8221; a Redditor said.
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Retirement Nightmare? 45-Year-Old Weighs $230K Lump Sum Vs. Lifetime Pension – 'Are Dividends A Good Idea For Me?' Reddit Reacts

Investing money into dividend stocks can result in steady cash flow. Gradually putting money into these investments will increase your dividend income over time, but some people receive a windfall of cash that they can deploy right away.
One Redditor finds themselves in that position. The individual is set to have $10,000 sometime next week and has been following the Dividends subreddit for a while. Now, after consuming content from the group for a while, the Redditor is <a href="https://www.reddit.com/r/dividends/comments/1juckoh/10k_invest/">looking for advice</a>.
"I'm looking for a decent yield and a little growth," the Redditor explained when asking for recommendations.&nbsp;
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In addition to the immediate $10,000 investment, the Redditor aims to invest $250 each month. Other Redditors shared their thoughts in the comments.
<h2 class="wp-block-heading">Stagger The $10,000 Investment&nbsp;</h2>
One commenter suggested staggering the $10,000 investment instead of putting it all into the market at once. This approach can help the Redditor capitalize on any price dips instead of unloading all of their capital and watching their assets lose value.
Many investors on Reddit seem to be jittery about the recent trade war. The popular consensus on Reddit is that the market will continue to tank, and that fear showed up again in the comments.
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An investor who wants to dollar cost average as the market goes down may want to consider breaking the $10,000 investment into several investments. The amount of times you break down the $10,000 should depend on your risk tolerance, your thoughts about current prices, and what you think the stock market will look like in five to 10 years.
<h2 class="wp-block-heading">Accumulate ETFs That Align With Your Financial Goals</h2>
The original poster mentioned some ETFs and received comments that suggested some ETFs as well. The Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) was the first ETF the original poster mentioned. It's no surprise to see SCHD mentioned in the Dividends subreddit since it seems to be a fan favorite.
The SPDR S&amp;P 500 Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>), and the JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) were some of the other ETFs that were mentioned in the post and the comments.&nbsp;
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However, these recommendations don't mean much since we don't know much about the Redditor. One of the top commenters pointed this out.
‘What to invest in depends a lot on your personal situation. You didn't provide any details about age, income, investment objectives (other than decent yield and a little growth, which is a relative idea), risk tolerance, jurisdiction, investment currency, etc., so it's hard for any meaningful advice to be given."
The best stocks and ETFs for one person may be different from the best assets for another person. Some people pursue high-yield stocks as they get closer to retirement, while others buy growth stocks when they are younger to maximize their potential returns. Personal details like risk tolerance and income play a role in which stocks and ETFs make sense for you.
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An Individual Is Ready To Invest $10,000 And Turns To Reddit For Advice: 'I'm Looking For A Decent Yield And A Little Growth'

President Donald Trump's tariffs against America's trading partners and the subsequent retaliatory measures from China and Europe resulted in major losses for investors across the globe, with no end to volatility in sight. Trade tensions may ease amid expected deals between key countries, but prudent investors are rethinking their long-term strategies.
Dividend stocks have gained significance in this period of market turbulence because of their strong history. A March <a href="https://www.spglobal.com/spdji/en/documents/research/research-sp500-dividend-aristocrats.pdf">report</a> from S&amp;P Global showed that dividends have accounted for about 31% of the total S&amp;P 500 returns since 1926.
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A few weeks ago, a dividend investor<a href="https://www.reddit.com/r/dividends/comments/1jic07f/retired_in_2021/"> shared</a> his income report and portfolio details on r/Dividends — a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor showed he was making about $9,250 per month, or $111,100 annually, in dividends. His total portfolio yield was about 2.3%.&nbsp;
"Dividends and interest cover 60% of expenses. Decent growth without huge volatility," he said.
The investor, 58, said he was a software engineer in Silicon Valley and retired in 2021. He said his goal is to cover his expenses of $15,000 per month with dividends by 2030.&nbsp;
"YOLO'd tech stocks in my IRA," the investor said, referring to the social media slang for taking a bold, high-risk approach.
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Let's take a look at some of the key holdings in the investor's portfolio.
iShares Short Treasury Bond ETF&nbsp;
The iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>) gives investors exposure to US Treasury bonds with remaining maturities of one year or less. SHV is suitable for investors looking for low-risk funds to preserve capital and earn income.&nbsp; The investor said SHV accounted for about 5% of his total portfolio.
iShares Core U.S. Aggregate Bond ETF
iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) was another key bond ETF in the investor's portfolio.&nbsp; The fund tracks an index composed of investment-grade US bonds.
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&nbsp;Schwab U.S. Dividend Equity ETF
The investor earning about $9,000 in monthly dividends had Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) in his portfolio. Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>).&nbsp;
iShares Core S&amp;P 500 ETF
The investor making $9,000 a month in dividends said about 60% of his portfolio was allocated to the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). The fund tracks the S&amp;P 500 Index and yields about 1.2%. It provides investors exposure to some of the biggest companies in the world, including Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>, GOOGL)), among others.
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GOOG

Software Engineer Making $9,000 a Month in Dividends Shares Portfolio, Says He 'YOLO'd Tech Stocks in IRA'

Investment giant BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) stock is trading higher after the company <a href="https://www.benzinga.com/pressreleases/25/04/b44757014/blackrock-reports-first-quarter-2025-earnings" target="_blank" rel="noreferrer noopener">reported first-quarter 2025 results</a>.
Revenue grew&nbsp;12%&nbsp;year over year (Y/Y) to&nbsp;$5.28 billion, missing the consensus of&nbsp;$5.60 billion.&nbsp;
Investment advisory, administration fees and securities lending revenues increased to $4.4 billion from $3.8 billion a year ago, led by higher organic base fees, the impact of market beta on average AUM, and around $285 million of fees related to the GIP Transaction.
Technology services and subscription revenue rose to $436 million from $377 million the prior year, led by continued demand for Aladdin technology offerings and the closing of the acquisition of Preqin Holding Limited in March 2025 (which added around $20 million to the revenues).
BlackRock stated that net inflow stood at&nbsp;$84 billion in the quarter, reflecting 3% annualized organic asset growth, driven by a record first quarter for iShares ETFs, along with private markets and active net inflows.
At the end of the quarter, total AUM was $11.6 trillion, compared to $10.5 trillion in the prior year quarter.
Adjusted operating income rose&nbsp;14% Y/Y to&nbsp;$2.03 billion, with the margin expanding to&nbsp;43.2% from&nbsp;42.2% a year ago.
Adjusted EPS increased&nbsp;15% Y/Y to&nbsp;$11.30,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$11.14.</a>
BlackRock repurchased shares worth&nbsp;$375 million&nbsp;in the quarter and raised&nbsp;the cash dividend per share by 2% to $5.21.
Laurence D. Fink, chairman and CEO, said, &#8221;We delivered 6% organic base fee growth in the first quarter, representing our best start to a year since 2021 and secular strength against a complex market backdrop.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/25/04/44756747/us-stocks-set-to-open-lower-amid-volatility-ahead-of-major-bank-earnings-fed-is-likely-to-cut-rates-again-on-june-18th-says-expert" rel="noreferrer noopener">US Stocks Likely To Open Lower As Volatility Persists Before Bank Earnings: &#8216;Fed Is Likely To Cut Rates Again On June 18th,&#8217; Says Expert</a>
"Uncertainty and anxiety about the future of markets and the economy are dominating client conversations. We&#8217;ve seen periods like this before when there were large, structural shifts in policy and markets – like the financial crisis, COVID, and surging inflation in 2022,&#8221; Fink added.
Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: BLK shares are up 1.31% at $870.00 premarket at the last check on Friday.
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Photo: Shutterstock

BlackRock's Bold Quarter: EPS Tops, $11.6 Trillion AUM, $84 Billion Inflows Power Growth

Building a strong investment <a href="https://in.benzinga.com/personal-finance/25/03/44534646/dad-with-mini-portfolio-and-1m-investment-plan-wants-son-living-off-of-dividend-income-comfortably-reddit-debates-best-stocks-to-buy">portfolio</a> requires an allocation for growth, one for stability, and a last one for income, especially when it comes to planning for retirement.
One widespread investing strategy involves mixing dividend-paying assets with broad-market ETFs, allowing investors to profit from both compounding revenue and long-term <a href="https://in.benzinga.com/markets/bonds/25/02/43724725/at-home-restructured-bonds-offer-asymmetric-opportunity-via-high-yields-potential-capital-appreciat">capital appreciation</a>. By continuously investing a fixed amount each month, investors can grow their <a href="https://in.benzinga.com/personal-finance/25/03/44348490/how-does-your-wealth-stack-up-against-your-peers-heres-the-net-worth-youll-need-to-be-among-the-richest-10-at-each-age">wealth</a> while minimizing risk through diversification.
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</ul>
Still, this strategy is often debated with some wondering whether dividend-focused ETFs are necessary for younger investors or if growth ETFs would deliver better returns in the long run. In a recent Reddit post, a 34-year-old investor shared he&#8217;s just starting his investing journey and is wondering whether his planned allocation can help him reach his financial goals.
His strategy involves allocating $2,000 per month across a mix of ETFs and dividend stocks, including 40 % to Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), 20% to Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>), 15% to Vanguard Total International Stock ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VXUS#NASDAQ">VXUS</a>), 15% to Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), and 10% to SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).
The poster&#8217;s goal is to build a portfolio that will generate substantial returns by the time he reaches his 50s or 60s. Yet, he's open to advice, especially regarding his 10% allocation to GLD. The Reddit community has offered the investor plenty of suggestions in the comments, so let&#8217;s jump into these right away.
Trending: It&#8217;s no wonder Jeff Bezos holds over $250 million in art — <a href="https://www.benzinga.com/money/masterworks">this alternative asset has outpaced the S&amp;P 500 since 1995, delivering an average annual return of 11.4%. Here&#8217;s how everyday investors are getting started.</a>
<h2 class="wp-block-heading">Is the Investor&#8217;s Planned Allocation a Good Strategy? Reddit Weights In</h2>
Opt for Small or Mid-Cap ETFs
Several Redditors argued that gold may not be the best choice for a young investor with a long time horizon. Instead, they suggested small- and/or mid-cap ETFs or even bond funds for better growth potential or stability.
&#8220;I like everything except gold. I'd look into small/mid-cap ETFs, and maybe a total bond ETF if you&#8217;re worried about volatility,&#8221; a commenter wrote.
Suggesting other assets and even Bitcoin instead of GLD, this Reddit user appreciated most of the poster&#8217;s allocation: &#8220;Love it besides the GLD. I would go either with a small/mid-cap ETF or Bitcoin if you are interested in that.&#8221;
This commenter suggested the investor&#8217;s portfolio should be more focused on U.S.-based stocks rather than international assets.
&#8220;Too much international, and way too much gold. Would add some small- and mid-cap instead,&#8221; he wrote.
See Also: Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.
Focus on Growth While Young
Many Reddit users argued that dividend ETFs like SCHD are less ideal for a 34-year-old investor, as growth-focused ETFs historically outperform over long periods.
&#8220;Zero reason for SCHD at that young of an age in my opinion,&#8221; a comment reads.
Suggesting that focusing on growth-oriented ETFs while young would reap better yields in the long run, this Redditor mentioned that the investor should shift to dividends when approaching retirement only.
&#8220;Because you are young, you could benefit from the time horizon and reap better returns from growth-focused ETFs over dividend ETFs, even taking into account dividend reinvestment. Closer to retirement you can transition to a dividend-focused portfolio,&#8221; he wrote.
&#8220;I&#8217;d skip QQQM and go 50% VOO, 25% VXUS, and 25% SCHD,&#8221; a commenter recommended.
Another Redditor suggested a similar allocation but also included GLD, saying, &#8220;I would drop the SCHD and QQQM in favor of more VOO and more VXUS. 65% VOO (or better [Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vti#NYSE">VTI</a>)]), 25% VXUS, 10% GLD.&#8221;
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QQQM

Reddit Erupts Over 34-Year-Old's Plan: 'My Strategy Is To Add $2K Monthly' – Is His Mix Of ETFs And Dividends A Genius Move Or A Bad One?

Investing in dividend-paying <a href="https://www.benzinga.com/25/03/44565770/30-year-old-with-65k-in-stocks-sparks-debate-focusing-mostly-on-etfs-but-now-betting-on-bonds-small-caps-and-international-plays">stocks</a> is a widespread strategy for those pursuing a regular income and long-term wealth growth.
Many investors, especially those looking for stability, prefer <a href="https://in.benzinga.com/personal-finance/25/03/44551261/early-retiree-making-17000-a-year-in-dividends-shares-top-7-stock-picks-says-ive-zero-regrets">dividends</a> because they generate regular payouts, often perceived as a safer choice than growth-focused assets. While dividend stocks may not always offer huge returns, they can act as a reliable income stream, particularly during market downturns or job loss.
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For young investors, building a dividend portfolio early can compound significantly in the long run. A 23-year-old investor recently turned to Reddit for advice on his $75,000 portfolio, sparking a debate on the best strategy.
The investor has built an impressive portfolio generating $1,828 in annual dividend income. His holdings include a combination of dividend stocks, ETFs, and alternative assets like crypto and gold.
Investing $1,000 per week, the poster shared that he believes in sacrificing when you&#8217;re young for the life you want to live later: &#8220;My motto is &#8216;Work hard now so you can live life to its fullest when it&#8217;s harder.&#8217; The idea is to have additional income so that even if your job pays worse down the line, you&#8217;re not fu&#8211;ed. I&#8217;ve already made close to $15,000 in investments. The rest was money I invested over a few years. So $60,000.&#8221;
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The 23-year-old&#8217;s strategy leans heavily on dividends, but besides sharing his picks, he&#8217;s also asked the members of the online discussion board for the best approach on optimizing his portfolio further. The r/Dividends community has jumped to the comment section to share its insights and suggestions, which circled around investing in growth-focused assets rather than dividends for now and shifting to dividends down the road.
Still, many commenters congratulated the young investor on his picks, so let&#8217;s dive deeper into those.
<h2 class="wp-block-heading">23-Year-Old With $75,000 Portfolio and $1.828 Dividend Income Shares Top 6 Picks</h2>
Citizens Financial Group
Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>) is a regional bank providing various retail and commercial banking products and services. Investors love CFG for its steady income and its position in the financial sector. The company pays investors around 4,06% in annual dividends.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>)​ is an exchange-traded fund that generates a higher regular income for investors while maintaining possibilities for capital appreciation. Delivering approximately 7.62% in annual dividends, JEPI invests in S&amp;P 500 stocks with low volatility and uses options strategies to yield revenue.
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JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>)​ focuses on producing income and capital appreciation by investing in U.S. large-cap growth stocks, mainly those included in the NASDAQ-100 Index. Like JEPI, it employs options strategies to boost the yield and pays investors around 11.14% in dividends per year.
Invesco QQQ Trust
Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tracks the performance of the NASDAQ-100 Index, which includes 100 of the largest non-financial companies on the exchange. Many people choose QQQ for its exposure to innovative tech and growth enterprises. Compared to JEPI and JEPQ, QQQ generates a lower dividend yield, around 0.63% per year.
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) concentrates on high-quality, high-dividend-paying U.S. stocks with a record of constant payouts. Generating approximately 3.73% in dividend yield annually, investors pick SCHD for its focus on dividend growth and quality companies.
SPDR S&amp;P 500 ETF Trust
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) tracks the performance of the S&amp;P 500 Index and provides broad market exposure with average dividends, which is a perfect choice for long-term growth. SPY pays investors around 1.22% in annual dividends.
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<li><a href="https://www.benzinga.com/money/gbr-savings-by-age">If You're Age 35, 50, or 60: Here&#8217;s How Much You Should Have Saved Vs. Invested By Now</a></li>
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</ul>

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