From The Motley Fool · David Dierking · · 1m 10s
3 Dividend ETFs That Deliver More Power Together
Schwab, Vanguard, and international ETFs boost dividend portfolios when combined.
In brief
Schwab, Vanguard, and international ETFs boost dividend portfolios when combined. Schwab U.S. Dividend Equity ETF (SCHD), Vanguard Dividend Appreciation ETF (VIG), and Vanguard International High Dividend Yield ETF (VYMI) create a more powerful dividend portfolio than individual holdings. Originally reported by The…
Why more ETFs don't always help
Adding growth or semiconductor ETFs to a core S&P 500 fund doesn't spread risk or exposure effectively.
SCHD: Quality high yield ETF
Schwab U.S. Dividend Equity ETF (SCHD) targets high quality, durable companies with 2.99% yield and 13% average annual return.
VIG: Dividend growth ETF
Vanguard Dividend Appreciation ETF (VIG) includes U.S. large-cap stocks with 10+ years of dividend growth and 1.50% yield.
VYMI: International dividend ETF
Vanguard International High Dividend Yield ETF (VYMI) delivers 3.67% yield with 40%+ allocation to financials.
Why they work together
Combining SCHD, VIG, and VYMI covers dividend growth, quality, and international diversification for better risk-adjusted returns.
The combined power
The trio delivers more power than individual parts by covering the full dividend stock universe multiple times.
The main idea
Schwab U.S. Dividend Equity ETF (SCHD), Vanguard Dividend Appreciation ETF (VIG), and Vanguard International High Dividend Yield ETF (VYMI) create a more powerful dividend portfolio than individual holdings.
