It’s not a shock that FDVV’s yield can’t keep up with SCHD for retiree income. Some folks might see “high dividend” in the name and think they’re winning. But if you look at the numbers, SCHD simply gives you more cash to spend.
You want income that lasts, right? SCHD has a better track record for reliable, higher payouts. FDVV struggles to top it, year after year. Sure, both funds buy stocks that pay dividends. But SCHD picks companies with longer histories of increasing their payouts. That means your money has a better chance to grow over time.
SCHD managers know what they’re doing. They focus on companies with strong profits and steady business. FDVV gets a little wild, mixing in a lot of stocks just to chase a yield. Sometimes, those stocks’ dividends get cut. Then your payout drops, and you’re left surprised.
If you’re planning to retire, you want steady, growing income, not surprises. Higher yield in the short term isn’t worth it if it’s not reliable. SCHD gives you a smoother ride and less drama. You get to relax, watch your dividends grow, and not worry about sudden cuts.
There’s also less risk with SCHD. Retirees don’t want to gamble with their paycheck. That’s why so many choose SCHD over flashier funds. If you want to see how this strategy works with big companies, check out this post about large-cap winners: WAB as a Large Cap Winner.
Don’t fall for marketing. Look at the facts. SCHD gives retirees more income and more peace of mind. It’s that simple.
You trade with emotion. I trade with patience. Show me your score.