One rule splits two funds

SCHD screens for cash-flow quality and pays higher yield. VIG only buys companies with 10+ years of dividend increases and excludes the highest yielders.

SCHD bets on value

The fund ranks companies on cash-flow-to-debt, ROE, yield, and dividend growth. Top holdings include QUALCOMM, Texas Instruments, UnitedHealth, Chevron, and Merck.

VIG chases growth compounders

By excluding high yielders, VIG tilts toward slower-yielding growth stocks like Microsoft, Apple, Broadcom, and Visa that raise dividends fastest.

Performance flips with rates

From 2020 to 2022, SCHD returned 44.24% versus VIG's 28.11%. Year to date, SCHD is up 24.69% against VIG's 8.39% as rates punish growth.

Ten year returns nearly identical

Over ten years, VIG returned 242.6% versus SCHD's 237.18%. Nearly the same total from radically different portfolios.

The income gap is real

SCHD yields near 3% on a $33.65 share price. VIG yields 1.7% on a $236.28 price. On $500,000, that's income a retiree can spend today.

“with 51% of Americans worried they will outlive their savings, income today has weight.”

SCHD wins for income now

Higher yield, cheaper valuation, and cash-flow durability make SCHD the stronger anchor for retirees funding withdrawals today.

VIG fits longer timelines

VIG suits investors five to ten years from retirement who want dividend growth to compound and can reinvest a smaller check.