SCHD vs VYM - Which Dividend ETF is Best? The Ultimate Comparison

In today’s video we’re going to compare two popular, higher-yielding dividend growth ETFs. The first one is the Schwab U.S. Dividend Equity ETF, ticker symbol SCHD, and the second is the Vanguard High Dividend Yield Index Fund, ticker symbol VYM. We’re going to do a bunch of comparisons between the two by looking at a number of different metrics. We’ll start by looking at some surface-level information like current yield, expense ratio, and holdings, and then eventually move on to calculating the dividend growth and total return of these two funds. As always, be sure to perform your own research and come to your own conclusion before making any investment decisions for yourself.

First off, the Schwab U.S. Dividend Equity ETF is a fund that invests in stocks selected based on their fundamental strengths relative to their peers, based on financial ratios. The fund's goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index. SCHD was launched in October of 2011, almost 13 years ago. The Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields. VYM was launched back in November of 2006, so it’s an older fund than SCHD.

#dividendinvesting #dividends #dividendstocks

[raynoldgrey]

Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600, 000 in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.

[Raymondjohn]

The S&P 500 finished down 20% in 2022. This means long term investors have a great starting point in 2023. Here are 4 very popular ETF’s: $VOO- S&P 500 fund $VTI- Total US stock market $QQQ- High growth, tech $SCHD- Growth + Dividends| I just tallied my dividends for the year;$167k Blessed and grateful, disciplined and focused.

[tahirisaid]

I realized that the secret to making a million is making better investment. ||

[DailyInvestmentChannel]

“Time in the market beats timing the market” greatest quote I’ve heard today.

[dylanmoris]

I would think that a major benefit of dividend investing is that calculating portfolio size needed is not relevant. We don't care about the value of the portfolio. We care about the sustainable income it pays. As you invest you can gradually see the income rise as you invest more and pull the retirement trigger when it's high enough regardless of the market sentiment.

[Riggsnic_co]

Like Warren Buffet said, dividends are only good if the business you're investing into can't make good use of that capital. So, if you're trying to invest in businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they're returning capital to you because they think you can make better use if it than they can. It's not much different from bond investing. The way I see it, if you have a $1 million at some point, that'd be enough to create a portfolio that would pay you between 50k - 70k in dividend income.

[GillerHeston]

Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.

[DividendInvestor]

Awesome comparison video, really helpful as well, appreciate you my man! 👍🏾

[JustinCase-emql]

I own both in my Roth IRA, with VOO, VGT, BRK.B, Tesla, MAIN, and CSWC.

ChaaaAAAAaaaaching!

[Mr_Glock]

Have you looked at FDVV? Looking at it compared to SCHD it seems to be on track to out pace it by a good margin.

[DividendDork]

Great review of these two important ETF’s! I think what really separates SCHD is the dividend growth.

[nancyw]

Thanks for making this informative video. This was a real comparison between the 2 etf’s. I feel more confident investing in either one now.

[georgetaggart]

Wow there are a lot bots and scammers here, but i do enjoy your videos.

[arigutman]

Love these comparison videos, VTI above all!

[JaniceHylton]

You make things so clear.
Thanks much

[Qller]

What do you think of dividend ETFs as an alternative to bonds?

[binhvong]

Are there any concerns about large turnovers? SCHD is 28% while VYM is 6%. Since buying and selling in the ETFs are not dividends but are capital gains, will they be taxed as ordinary income even if you did not sell any shares of the ETFs?

[yourportlandlifestyle]

Both of those will be taxed at the higher rate. ETFs pay out ordinary dividends, because they balance the holding per their strategies. Some etfs do this more often than others. Stocks after you hold the for a while have qualified dividends, ETFs do not enjoy this by definition. In addition to that VYM does not hold REITs per their strategy. These 2 funds follow different bench marks or indexes, they are not overly traded, which lowers costs and both are good investment choices.

[Danimal]

Which stock is best for long term dividend growth to make as much money as possible and not take out for another 20 years in your best opinion?
Please and thank you 😊

[swenpintat]

Just invest in schd, VYM and VIG plus 10 percent jepq😊