VIG vs. SCHD: The Better Dividend ETF Might Be the One With the Lower Yield
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) checks all the boxes that investors would want in a dividend ETF. It screens dividend stocks for high-quality balance sheets, above-average yield, and dividend growth history. It’s one of the very few funds that considers all three of these factors in a single strategy.
The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) takes a simpler approach. It targets large-cap stocks with 10+ consecutive years of annual dividend growth while avoiding the highest-yielding stocks to help limit risk.
Both are reasonable long-term strategies, but they definitely produce different portfolios with different risk profiles and different results. So which is the better choice? Let’s dive in and find out.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.