When you compare FDVV and SCHD, SCHD clearly pays more income. If you want your retirement income to grow, FDVV does not keep up. SCHD’s yield is higher, and that means more money in your pocket every year. Even if you like the companies in FDVV, they just don’t pay as much.
People like FDVV because it owns big U.S. companies. But those companies do not raise their dividends as much as SCHD’s group does. Also, SCHD focuses on stocks that pay more every year and that helps your income beat inflation. If your goal is strong, growing income, SCHD wins every time. FDVV just can’t keep up with the dividend growth.
Let’s not kid ourselves. You want reliable income for retirement, not just a pretty list of companies. SCHD was literally built for retirement income. The numbers do not lie. SCHD’s yield is higher than FDVV’s. It also grows its payout faster. If you are worried about inflation, SCHD is the obvious choice.
Some investors chase hot new funds because they think they are smarter. But results are what actually matter. If you want your retirement to work for you, SCHD’s yield and growth rate are better for income. FDVV is still okay, but it trails. You want winners, not runners-up when it comes to your money. Don’t overthink it.
If you want to see more about comparing dividend yields, check out my post on XOM dividend yield versus SCHD yield.
You trade with emotion. I trade with patience. Show me your score.