For my Roth, I do: 1. Foundation/cornerstone: SPLG 2. Growth: QQQM 3. Dividend: SCHD 4. REIT: O 5. Cover call: JEPQ Most going into dividend and growth at 33 years old
own DGRO and SCHD. DGRO has been a better performer in my portfolio. Owned both same amount of time. Dont plan on selling either and just collecting shares for the next few many years.
SCHD is my biggest holding, followed by DGRO. I primarily added DGRO because of its larger amount of holdings while still maintaining a decent dividend. Having so much money in SCHD when it only carries 100 companies was making me nervous, but it will continue to be my core.
Awesome review - thank you! I have 50/50 DGRO & SCHD in one Roth portfolio. The overlap isn’t bad, and as you said, DGRO has some growth characteristics that help balance it with SCHD’s strengths.
Thanks for the research on DGRO, Jeff! For the traditional dividend ETF portion, I've got SCHD @ 72.2%, DGRO @13.4%, and VYM @13.4%. I've also got O at 8% and JEPQ @ 2.5% If I wasn't retired and focusing on yield, I'd have less SCHD, no VYM, more DGRO, and add VIG. I agree with you and have never considered VIG a dividend ETF. When I was transitioning from a growth portfolio to dividends in 2023, I kinda hit a wall and just felt uncomfortable putting 100% in SCHD and wanted a bit of diversity. I've heard others call it a core and satellite portfolio. If I had been growing a smaller size SCHD position for years, I think I'd feel differently about it. It'll be interesting to see how each piece performs over the next 10 years. Once the dividend CAGRs do their compounding, I plan to sell up to half the O position in 2 to 3 years. Those funds will be used to continue DCA into growth ETFs and other contrarian plays at that time.
Hi Jeff - I hope you and your family get well soon! I currently hold SCHD. I also own VGT and I am considering buying XLK because it is significantly less expensive than VGT.
Thanks for watching and responding, Bruce! Appreciated. XLK is fantastic. It has actually out performed VGT by a decent amount in the recent years. Zoom out and they are about tied over the past 20 years. A quick note: If your broker allows fractional shares then price is fairly irrelevant. VGT and XLK are 82% the same (82% weighted overlap). But VGT is way higher in 'price'. It doesn't mean it has more expensive companies. A better example is VGT and FTEC. They cover the exact same index, and have a 95% overlap with the same companies. But FTEC is only $148 per share. With ETFs (and really stocks), price per share doesn't tell us anything without the other data to calculate different ratios. You likely already knew this, and if so, it's great for other people to know. Also, if your broker doesn't allow fractional shares (like my main broker, E*TRADE), then the cheaper price may actually allow you to put slightly more money into. I have OCD, so I don't like having fractional shares. I put the rest into a money market to get my 5.28%, so E*TRADE is a great fit for me (:
Oh yeah! The two best dividend growth ETFs in my opinion! I think VIG belongs in the mix as well, but the lower yield and higher tech exposure makes it more of a hybrid fund IMO (instead of dividend specific).
Hope you and the family get well soon. So many videos out there in different dividend growth ETFS so easy to try and spread bet to get exposure to all. When I was first developing my portfolio kept considering just one more. Followed your advice and believe simplification and data driven is the way to go so just roll with SCHD for dividends now. If you ever change your mind let us know. If you look at history there were 3 times they lowered interest rates too soon and inflation spiked. I think if they do the same this year history will likely repeat itself. Fed likely to keep the rates high for longer. If they don’t cut I wonder if SCHD will have another flat/down year. Regardless won’t change my approach or strategy. Will remain consistent and patient. Thanks. Michael
Love the mindset Michael! I’m the same way. Macro matters, but it doesn’t change my strategy! No timing for me, just cost averaging into my 3 fund portfolio in any market.
Get well soon! I appreciate you putting out such great videos, but don't be afraid to take it easy lol. You're definitely underrated. Glad I've been adding DGRO for a while, but at the time SCHD outweighs it at 80/20% in my dividend portfolio. Question for you: what do you think of DIVO? Thought about investing in it several months back, but the expense ratio of .55% and only 37 holdings (most of which are companies everyone knows about) really turned me off. Especially when I already have SCHD, VGT, QQQM, and a VOO equivalent.
Thanks for the kind words! You have nothing but solid holdings in your portfolio. DGRO and SCHD are a nice 1-2 punch for your dividends. They both yield fairly well and grow the dividends. I would not add DIVO to the mix. It's performed well over the past 5 years, but is still behind all of your holdings on total return. Any expense ratio over 0.50% is an automatic no for me as one of my 2 hard rules of long-term investments. The other being that it must be passively managed. Also, DIVO has a negative 5 year dividend growth rate. Whereas SCHD and DGRO have both grown the dividends by 10%+ per year over those 5 years. I would stay the course with what you have and pass on DIVO. I'm also just a dude on the Internet (:
I love that 1-2 dividend punch. They are my two favorite dividend ETFs. DGRO for the locked in growth, and SCHD for a solid yield, high value floor, and great dividend growth as well.
SCHD+DGRO is a good combo, in value have been switching places over time and you can simulate what would happen if you put those monthly U$500 in the one that was bellow at the time : better performance than the S&P500 with way more dividends
I'm a big fan of both SCHD and DGRO. I think they will both fair well in the coming months if the market continues to be a rollercoaster. I'm a fan of having VOO and growth ETFs as well. Try to keep everything in balance in all markets.
@@JeffTeeples agree, by the way combining SCHD with VOO, or VTI (more dividends), is also a good way to navigate the market. If you want to reduce volatility and increase dividends try also adding some of the covered CALL OTM (3-5%) ETFs such as DIVO, JEPI and JEPQ or all 3 of them, they are quite effective as intended. To go more on the cautious way add some utilities and treasury bond ETFs, that certainly won't beat the market in highs but could make you sleep better and at the same time beat inflation.
I own DGRO, SCHD and DGRW. I put DGRW in my cornerstone category. I believe it has a slightly higher dividend than Voo and the beta and max draw down is lower. After rewatching your video I'm just wondering if I should sell DGRO and just hold SCHD. I don't see an advantage for holding it.
Hey Chris. I think all three of those ETFs are solid. If you have a lot of DGRW, or other growth ETFs like SCHG, QQQM, VGT, etc, then I think SCHD is an awesome 'base' for the 'floor protection' and value. DGRO is a great dividend ETF, probably my second favorite dividend ETF. But I prefer going growth (QQQM and VGT for me) + SCHD instead of DGRO. I really don't think you can go wrong, but SCHD provides a better 'counter-balance' to the popular ETFs out there. It has unique holdings with low overlap (I go into more depth this Sunday about that).
I think SCHD and DGRO are both great dividend growth ETFs. They have lower yields than many, but will reliably grow the dividend per share while also having nice total returns compared to other dividend ETFs. They are my two favorites, personally, with VIG being right there behind DGRO. Thanks for watching!
That's actually a great question & one I don't know the answer to (as far as a quick and easy way). I find out by reading the blurb about the ETF on the 'summary' tab of Seeking Alpha (or on the ETFs home page at the company that provides it). It will say something like 'seeks to track the performance of *insert index*' (if it is passively managed). Then I'll do more research on that index to assure that it is passively managed and has sound methodology (how it selects the stocks that it does. It will have a 'screener' that says each stock in the fund must: (just example here, not a real ETF): 1) Have paid a dividend for 5 years 2) Be a US company 3) Have a net income margin of 5% Then it may score those factors to select the top 100 stocks from the 563 that made it. If it isn't obvious after reading the summary (sometimes it isn't), then you can check what is known as the ETFs 'prospectus'. It should directly mention 'how it works' in there. It will say 'X fund is an actively managed fund that' type statements.
I'm a big fan of both of those. SCHD will focus a bit more on yield and DGRO on dividend growth. But... They both should thrive in both categories. They have a weirdly low fund overlap for being 'similar' funds. Only 20% overlap.
Hey Mindy! I’m working on this right now. I want a way to mass share my spreadsheets on the channel. More to come soon. I need to find an easy and secure way to share my spreadsheets and Google sheets (once I covert them). Will be blending this into my RUclips memberships. All one cheap tier. Long-term, I want to make an elaborate spreadsheet for tracking everything in detail.
Hey Mike, thanks for the question! For me SPYI is a hard no, as it doesn't meet my expense ratio hard rule of 0.50% or under. But... The fund has performed well in its short history! The S&P 500 holdings are solid, and the cash flow is great during the short history.
Thank you David! That is Clyde the Glide Drexler. I'm showing my age a little with that player (my favorite of all time). Born in Portland hospital and branded early. Watch every game to this day (I think I have a problem). What team do you roll with?
I am considering international dividend etfs as a small portion of my portfolio , such as vymi, schy. Would this be good enough for international exposure? They pay nice dividends too!
I hold both DGRO and SCHD as my dividend ETFs. About 2/3 SCHD and 1/3 DGRO. Why? Because I learned about SCHD after I had already been investing in DGRO for years lol. I just maintain the holding now
Thank you for the comment. I think they are a fantastic combination! SCHD covers yield while also providing dividend growth. DGRO should grow the dividends while also providing a solid yield. I don't think you can go wrong with either, long-term.
Thank you for watching and commenting Chris. I think I'm due for a dividend ETF video soon! I'll be sure to add in JEPQ & DGRO. They are two of my favorites.
My favorite ETF is SCHD. I'm waiting for something to happen so I can add VGT or QQQm to my portifolio since they are so expensive now. Meanwhile I keep on increasing my SCHD position and cheaper stocks such as Chevron, Pfizer, and Starbucks for an instance. I know you don't hold any individual stocks but I like to take advantage of low prices since you can't do that with ETF's unless the market crashes as a whole. Am I right?
Thanks for sharing. Those are solid holdings! I actually have some individual stocks I’m working on. The vast majority is ETFs though to your point. I’ll be sharing my portfolio in my next Sunday video! Stay tuned.
Sure thing. I have you covered. Check it out here: ruclips.net/video/0bPRW6usQDk/видео.htmlsi=IxSWt1Wxsm1je_Yf BTW, I love DGRW, and think it's a great investment. I compare it to something else in the video that has performed better, but DGRW is right up there with the best single hybrid & cornerstone ETFs.
JEPI and (especially because I like the Nasdaq-100 index better) JEPQ are my two favorite actively managed ETFs. If you watch my videos, being actively managed is usually a hard no for me. But JEPQ (the one I roll with) is ironically less volatile in its nature than the index that it is based on, QQQ. The call options raise the floor with guaranteed income, and they lower the ceiling (because the big growth will be called away if the price goes way up within a contract). For me, I use JEPQ as my 'cash on steroids'. I don't consider it with my long-term investments (I would grab QQQM for that, and forget the cash flow), but it is right there boosting my cash with VMFXX, the money market I use. I will have many videos including JEPQ in the future after I share my portfolio next week.
I don’t understand why you would wait for an etf to grow dividends? Why not just sell them and buy an etf that pays higher dividends? You can grow them yourself faster. Am I missing something here?
Hey Tony. There is nothing wrong with investing in a high yield ETF and reinvesting the access profits back in to grow. Generally speaking, but not always, higher yielding funds have lower 'total returns' than dividend growers. When you zoom out a decade or two, you'll realize your yield on cost AND total returns are greater with lower starting yields. Yield is a snapshot metric that doesn't tell us a lot long-term. It is accurate for what you're buying 'right then', but it will changes drastically as the price of an ETF increases or decreases. When the price goes DOWN (your holdings lost total return), the yield goes up. Think about the implications of that long-term. Even with MORE dividend yield (but the exact same dividend payment, the price changed the equation), you are getting LESS total return. SCHD has doubled its dividend (dividend growth, nothing to do with price up or down) every 7 years or so in the past decade. The yield has stayed the same'ish over time. Think about that. The dividend payment has doubled, but the yield hasn't budged. You got it, the price has doubled as well. When you look at a dividend growth chart for SCHD or DGRO, and see it literally double per share every 7 or so years, it is eye opening. Buy it now and think about the implications on both value and dividend income in 28 years.
Thanks for the detaied response. Really like your channel. I find it fascinating researching these etfs. The more I look at them the more I believe I should just stick with only SCHD. Maybe add some JEPQ in retirement in 7 years.
Thank you for watching and the comment. DGRO is a nice addition for any portfolio. I love that it has a solid dividend yield and dividend growth rate at all times.
Thanks for the question. I'm not too hot on SPYD in general. I know it has a nice yield, but it really struggles with dividend growth and total return over the past 5 to 8 years (since inception). 5Y total returns: DGRO: 75.03% SPYD: 32.61% It's yield is nice, but I would take SCHD to get a solid yield, and superior dividend growth rates and total returns. I will add to my spreadsheet to track because I see a lot of people ask about this one. Maybe a future video as well.
I agree with this. I do think balance is important at all ages, but, growth is a nice focus for younger people in general. I would argue VTI is a weird example (it's not bad at all, but I think its a base fund for all ages). For youngsters that can ride out big down turns by DCA in more dollars, I would say VGT, SCHG, and QQQM are the 'growth' ETFs I would focus on (again, still having some VOO or VTI as well, which is historically roughly 50/50 on growth/value).
For my Roth, I do:
1. Foundation/cornerstone: SPLG
2. Growth: QQQM
3. Dividend: SCHD
4. REIT: O
5. Cover call: JEPQ
Most going into dividend and growth at 33 years old
Very nice, Jeff! That portfolio is pretty close to how I do things. I’ll be revealing my portfolio in the next video.
Thanks!
Thanks Brianna! Hope you're having a great week (: Your support is deeply appreciated!
own DGRO and SCHD. DGRO has been a better performer in my portfolio. Owned both same amount of time. Dont plan on selling either and just collecting shares for the next few many years.
Very nice 1-2 punch! Thanks for watching and commenting!
Own 512 shares of SCHD and 122 shares of DGRO
How often DGRO pays dividends?
@@reamonagoodwin807how often this etf schd and dgro pays dividends?
SCHD is my biggest holding, followed by DGRO. I primarily added DGRO because of its larger amount of holdings while still maintaining a decent dividend. Having so much money in SCHD when it only carries 100 companies was making me nervous, but it will continue to be my core.
Hey Ronald, thanks for the comment. You have one heck of a 1-2 punch with your dividend ETFs!
You're spread out across 9 sectors. It's a very balanced etfs, I don't like Verizon , Pfzier and Ford being there.
Awesome review - thank you! I have 50/50 DGRO & SCHD in one Roth portfolio. The overlap isn’t bad, and as you said, DGRO has some growth characteristics that help balance it with SCHD’s strengths.
Thank you for your comment. I think that is an amazing 1-2 punch!
Thanks for the research on DGRO, Jeff!
For the traditional dividend ETF portion, I've got SCHD @ 72.2%, DGRO @13.4%, and VYM @13.4%.
I've also got O at 8% and JEPQ @ 2.5%
If I wasn't retired and focusing on yield, I'd have less SCHD, no VYM, more DGRO, and add VIG.
I agree with you and have never considered VIG a dividend ETF.
When I was transitioning from a growth portfolio to dividends in 2023, I kinda hit a wall and just felt uncomfortable putting 100% in SCHD and wanted a bit of diversity. I've heard others call it a core and satellite portfolio.
If I had been growing a smaller size SCHD position for years, I think I'd feel differently about it.
It'll be interesting to see how each piece performs over the next 10 years.
Once the dividend CAGRs do their compounding, I plan to sell up to half the O position in 2 to 3 years. Those funds will be used to continue DCA into growth ETFs and other contrarian plays at that time.
Thanks for this awesome feedback, Charlie! Love the portfolio and I can’t wait to see how that does over the years. All fantastic holdings!
Hi Jeff - I hope you and your family get well soon! I currently hold SCHD. I also own VGT and I am considering buying XLK because it is significantly less expensive than VGT.
Thanks for watching and responding, Bruce! Appreciated.
XLK is fantastic. It has actually out performed VGT by a decent amount in the recent years. Zoom out and they are about tied over the past 20 years.
A quick note: If your broker allows fractional shares then price is fairly irrelevant. VGT and XLK are 82% the same (82% weighted overlap). But VGT is way higher in 'price'. It doesn't mean it has more expensive companies.
A better example is VGT and FTEC. They cover the exact same index, and have a 95% overlap with the same companies. But FTEC is only $148 per share. With ETFs (and really stocks), price per share doesn't tell us anything without the other data to calculate different ratios.
You likely already knew this, and if so, it's great for other people to know. Also, if your broker doesn't allow fractional shares (like my main broker, E*TRADE), then the cheaper price may actually allow you to put slightly more money into.
I have OCD, so I don't like having fractional shares. I put the rest into a money market to get my 5.28%, so E*TRADE is a great fit for me (:
Both SCHD and DGRO are great as a core dividend portfolio.
Oh yeah! The two best dividend growth ETFs in my opinion! I think VIG belongs in the mix as well, but the lower yield and higher tech exposure makes it more of a hybrid fund IMO (instead of dividend specific).
Exactly the info I needed 🎯🎯🎯
Hey Roberto. I appreciate you taking the time to watch the video and for dropping positive feedback. Great to have you here.
Schd is my largest position but added DGRO and HDV to my portfolio. Those are my 3 core dividend etfs.
A very nice combination of dividend ETFs. Thanks for sharing Rich.
Hope you and the family get well soon. So many videos out there in different dividend growth ETFS so easy to try and spread bet to get exposure to all. When I was first developing my portfolio kept considering just one more. Followed your advice and believe simplification and data driven is the way to go so just roll with SCHD for dividends now. If you ever change your mind let us know.
If you look at history there were 3 times they lowered interest rates too soon and inflation spiked. I think if they do the same this year history will likely repeat itself. Fed likely to keep the rates high for longer. If they don’t cut I wonder if SCHD will have another flat/down year. Regardless won’t change my approach or strategy. Will remain consistent and patient. Thanks. Michael
Love the mindset Michael! I’m the same way. Macro matters, but it doesn’t change my strategy! No timing for me, just cost averaging into my 3 fund portfolio in any market.
Get well soon! I appreciate you putting out such great videos, but don't be afraid to take it easy lol. You're definitely underrated.
Glad I've been adding DGRO for a while, but at the time SCHD outweighs it at 80/20% in my dividend portfolio.
Question for you: what do you think of DIVO? Thought about investing in it several months back, but the expense ratio of .55% and only 37 holdings (most of which are companies everyone knows about) really turned me off. Especially when I already have SCHD, VGT, QQQM, and a VOO equivalent.
Thanks for the kind words!
You have nothing but solid holdings in your portfolio. DGRO and SCHD are a nice 1-2 punch for your dividends. They both yield fairly well and grow the dividends.
I would not add DIVO to the mix. It's performed well over the past 5 years, but is still behind all of your holdings on total return. Any expense ratio over 0.50% is an automatic no for me as one of my 2 hard rules of long-term investments. The other being that it must be passively managed.
Also, DIVO has a negative 5 year dividend growth rate. Whereas SCHD and DGRO have both grown the dividends by 10%+ per year over those 5 years.
I would stay the course with what you have and pass on DIVO. I'm also just a dude on the Internet (:
@JeffTeeples Always appreciate your input, thank you! Glad I didn't jump on the hype train several months back. Looking forward to your next video!
Yep I consider (and have) DGRO/SCHD as a pair for DivGrowth portion.
I love that 1-2 dividend punch. They are my two favorite dividend ETFs. DGRO for the locked in growth, and SCHD for a solid yield, high value floor, and great dividend growth as well.
This is an option I'll consider. I hold IIPR/PRA, MO, T and FSK for dividends. PLUG, PLTR and LILM for short term plays.
Thanks for the comment. Nothing wrong with building up some positions in individual stocks. DGRO or SCHD could be a nice stabilizer to add to the mix.
SCHD+DGRO is a good combo, in value have been switching places over time and you can simulate what would happen if you put those monthly U$500 in the one that was bellow at the time : better performance than the S&P500 with way more dividends
I'm a big fan of both SCHD and DGRO. I think they will both fair well in the coming months if the market continues to be a rollercoaster. I'm a fan of having VOO and growth ETFs as well. Try to keep everything in balance in all markets.
@@JeffTeeples agree, by the way combining SCHD with VOO, or VTI (more dividends), is also a good way to navigate the market. If you want to reduce volatility and increase dividends try also adding some of the covered CALL OTM (3-5%) ETFs such as DIVO, JEPI and JEPQ or all 3 of them, they are quite effective as intended. To go more on the cautious way add some utilities and treasury bond ETFs, that certainly won't beat the market in highs but could make you sleep better and at the same time beat inflation.
I own DGRO, SCHD and DGRW. I put DGRW in my cornerstone category. I believe it has a slightly higher dividend than Voo and the beta and max draw down is lower. After rewatching your video I'm just wondering if I should sell DGRO and just hold SCHD. I don't see an advantage for holding it.
Hey Chris. I think all three of those ETFs are solid. If you have a lot of DGRW, or other growth ETFs like SCHG, QQQM, VGT, etc, then I think SCHD is an awesome 'base' for the 'floor protection' and value.
DGRO is a great dividend ETF, probably my second favorite dividend ETF. But I prefer going growth (QQQM and VGT for me) + SCHD instead of DGRO. I really don't think you can go wrong, but SCHD provides a better 'counter-balance' to the popular ETFs out there. It has unique holdings with low overlap (I go into more depth this Sunday about that).
What do you think about DGRO + SCHG or is that too much growth btw I’m 22 so I want to be a bit more aggressive
I think SCHD and DGRO are both great dividend growth ETFs. They have lower yields than many, but will reliably grow the dividend per share while also having nice total returns compared to other dividend ETFs. They are my two favorites, personally, with VIG being right there behind DGRO. Thanks for watching!
"coming in the caboose" o my!
I always like your analysis one ETFS
Thanks for the feedback Venkat. I'm trying to do more videos that feature a specific ETF. There are so many great ETFs available!
@@JeffTeeples looking forward
New to stocks. Where on the fund profile does it say it’s passively managed?
That's actually a great question & one I don't know the answer to (as far as a quick and easy way). I find out by reading the blurb about the ETF on the 'summary' tab of Seeking Alpha (or on the ETFs home page at the company that provides it). It will say something like 'seeks to track the performance of *insert index*' (if it is passively managed).
Then I'll do more research on that index to assure that it is passively managed and has sound methodology (how it selects the stocks that it does. It will have a 'screener' that says each stock in the fund must:
(just example here, not a real ETF):
1) Have paid a dividend for 5 years
2) Be a US company
3) Have a net income margin of 5%
Then it may score those factors to select the top 100 stocks from the 563 that made it.
If it isn't obvious after reading the summary (sometimes it isn't), then you can check what is known as the ETFs 'prospectus'. It should directly mention 'how it works' in there. It will say 'X fund is an actively managed fund that' type statements.
@@JeffTeeples thanks for the reply! Very useful information thank you
If I want to add 25% of SCHD to my portfolio, how about doing 13% SCHD & 12% DGRO? Or should I just pick one and do 25% into it?
I'm a big fan of both of those. SCHD will focus a bit more on yield and DGRO on dividend growth. But... They both should thrive in both categories. They have a weirdly low fund overlap for being 'similar' funds. Only 20% overlap.
St. Louis checking in.
You’re always good for a check-in. You’re one of my first subscribers to the channel! Always appreciated.
Can we get a copy of your Excel spreadsheet? Would love to use it as a template
Hey Mindy! I’m working on this right now. I want a way to mass share my spreadsheets on the channel.
More to come soon. I need to find an easy and secure way to share my spreadsheets and Google sheets (once I covert them). Will be blending this into my RUclips memberships. All one cheap tier.
Long-term, I want to make an elaborate spreadsheet for tracking everything in detail.
How about Spyi? As substitute for jepi.
Hey Mike, thanks for the question! For me SPYI is a hard no, as it doesn't meet my expense ratio hard rule of 0.50% or under.
But...
The fund has performed well in its short history! The S&P 500 holdings are solid, and the cash flow is great during the short history.
I'd substitute jepi with jepq imo...
Good content, thanks. Whose signature is on the basketball to your right?
Thank you David! That is Clyde the Glide Drexler. I'm showing my age a little with that player (my favorite of all time).
Born in Portland hospital and branded early. Watch every game to this day (I think I have a problem).
What team do you roll with?
I am considering international dividend etfs as a small portion of my portfolio , such as vymi, schy. Would this be good enough for international exposure? They pay nice dividends too!
I consider both of those International dividend ETFs very solid. I think it's a great way to get international exposure.
I bought some ITM DGRO calls at 57$. I’m expecting it to consolidate and grow over the next two weeks.
I wish you well on the calls Nicholas! Thanks for dropping the comment.
I hold both DGRO and SCHD as my dividend ETFs. About 2/3 SCHD and 1/3 DGRO. Why? Because I learned about SCHD after I had already been investing in DGRO for years lol. I just maintain the holding now
Thank you for the comment. I think they are a fantastic combination! SCHD covers yield while also providing dividend growth. DGRO should grow the dividends while also providing a solid yield. I don't think you can go wrong with either, long-term.
Learning, but schd makes the most sense to me. Also like schg.
Hey Candra. Thank you for watching and dropping a comment. I agree with you. I'm a bigger fan of SCHD myself in the dividend world.
ABBV is included in DGRO but I see that its payout ratio is over 100%, wouldn't this be a violate of the screening methodology?
Thanks for watching and for the question. I show ABBV as having a 28.32% payout ratio, which puts it well below the required 75%.
I’m SCHD and JEPQ at the moment . Would love to see a JEPQ vs DGRO video
Thank you for watching and commenting Chris. I think I'm due for a dividend ETF video soon! I'll be sure to add in JEPQ & DGRO. They are two of my favorites.
My favorite ETF is SCHD. I'm waiting for something to happen so I can add VGT or QQQm to my portifolio since they are so expensive now. Meanwhile I keep on increasing my SCHD position and cheaper stocks such as Chevron, Pfizer, and Starbucks for an instance. I know you don't hold any individual stocks but I like to take advantage of low prices since you can't do that with ETF's unless the market crashes as a whole. Am I right?
Thanks for sharing. Those are solid holdings! I actually have some individual stocks I’m working on. The vast majority is ETFs though to your point.
I’ll be sharing my portfolio in my next Sunday video! Stay tuned.
@@JeffTeeples I can't wait to see what's in your portfolio. lol
Can you do a video on DRGW?
Sure thing. I have you covered. Check it out here: ruclips.net/video/0bPRW6usQDk/видео.htmlsi=IxSWt1Wxsm1je_Yf
BTW, I love DGRW, and think it's a great investment. I compare it to something else in the video that has performed better, but DGRW is right up there with the best single hybrid & cornerstone ETFs.
I have SCHD/DGRO in my brokerage account.
A very nice combo! Thanks for watching and for dropping a comment.
How about jepi jepq
JEPI and (especially because I like the Nasdaq-100 index better) JEPQ are my two favorite actively managed ETFs. If you watch my videos, being actively managed is usually a hard no for me.
But JEPQ (the one I roll with) is ironically less volatile in its nature than the index that it is based on, QQQ. The call options raise the floor with guaranteed income, and they lower the ceiling (because the big growth will be called away if the price goes way up within a contract).
For me, I use JEPQ as my 'cash on steroids'. I don't consider it with my long-term investments (I would grab QQQM for that, and forget the cash flow), but it is right there boosting my cash with VMFXX, the money market I use.
I will have many videos including JEPQ in the future after I share my portfolio next week.
I don’t understand why you would wait for an etf to grow dividends? Why not just sell them and buy an etf that pays higher dividends? You can grow them yourself faster. Am I missing something here?
Hey Tony. There is nothing wrong with investing in a high yield ETF and reinvesting the access profits back in to grow.
Generally speaking, but not always, higher yielding funds have lower 'total returns' than dividend growers. When you zoom out a decade or two, you'll realize your yield on cost AND total returns are greater with lower starting yields.
Yield is a snapshot metric that doesn't tell us a lot long-term. It is accurate for what you're buying 'right then', but it will changes drastically as the price of an ETF increases or decreases.
When the price goes DOWN (your holdings lost total return), the yield goes up. Think about the implications of that long-term. Even with MORE dividend yield (but the exact same dividend payment, the price changed the equation), you are getting LESS total return.
SCHD has doubled its dividend (dividend growth, nothing to do with price up or down) every 7 years or so in the past decade.
The yield has stayed the same'ish over time. Think about that. The dividend payment has doubled, but the yield hasn't budged. You got it, the price has doubled as well.
When you look at a dividend growth chart for SCHD or DGRO, and see it literally double per share every 7 or so years, it is eye opening. Buy it now and think about the implications on both value and dividend income in 28 years.
Thanks for the detaied response. Really like your channel. I find it fascinating researching these etfs. The more I look at them the more I believe I should just stick with only SCHD. Maybe add some JEPQ in retirement in 7 years.
I dont get the point of DGRO if you hold VOO &/OR VGT or VUG (or equivalent funds like FXAIX or QQQM).
I agree with this feedback. It is why I prefer SCHD over DGRO in my portfolio. Less overlap and lower PE to counterbalance VOO / VGT / QQQM.
I thinking of getting this one for my ROTH. I like the idea of combining of dividend and growth...hope you feel better, the cold is going around :)
Thank you for watching and the comment. DGRO is a nice addition for any portfolio. I love that it has a solid dividend yield and dividend growth rate at all times.
In Europe we can't invest in these EFT's. I do not know if there are similar ETF's for us here in Europe.
Thank you for watching and for the comment. That drives me crazy, I wish it was the same everywhere. I don’t know the bad available ETFs there either.
* DGRW
I figured that is what you meant (:
Have you looked at SPYD etf? How about a SPYD vs DGRO video?
Thanks for the question. I'm not too hot on SPYD in general. I know it has a nice yield, but it really struggles with dividend growth and total return over the past 5 to 8 years (since inception).
5Y total returns:
DGRO: 75.03%
SPYD: 32.61%
It's yield is nice, but I would take SCHD to get a solid yield, and superior dividend growth rates and total returns.
I will add to my spreadsheet to track because I see a lot of people ask about this one. Maybe a future video as well.
VTI beat dgro
VOO beat VTI.
QQQ beat VOO.
VGT beat QQQ.
(Not sure why we are comparing apples and oranges here, but had to dive in)
@@JeffTeeples if you are young you should care about growth not dividends.
I agree with this. I do think balance is important at all ages, but, growth is a nice focus for younger people in general.
I would argue VTI is a weird example (it's not bad at all, but I think its a base fund for all ages). For youngsters that can ride out big down turns by DCA in more dollars, I would say VGT, SCHG, and QQQM are the 'growth' ETFs I would focus on (again, still having some VOO or VTI as well, which is historically roughly 50/50 on growth/value).
@@JeffTeeples agreed.
SCHD/DGRO/SPLG/SCHG/SMH here
That is a great mix James. Love the value / dividend / market / growth coverage with your mix.