SCHD

ng_logic

You're in a great spot, and your kids are lucky you're thinking this far ahead. The fact that you're worried about the savings rate is actually a good sign - it means you're being realistic, not just optimistic. And yeah, the feedback you're getting is right. XEQT already does the job. Adding VOO and SCHD on top just means you're making an unconscious bet that US large caps will outperform the rest of the world, which might be right or might be wrong, but it's not part of a deliberate strategy. Simplicity isn't just easier - it's usually better. Fewer moving parts means fewer decisions to second-guess when markets get volatile. At your income trajectory with a DB pension backing everything up, XEQT and patience will get you where you want to go. The hardest part won't be picking the right ETF. It'll be doing nothing during the next crash while everyone around you panics.

ng_logic

Honestly the plan is solid but you're overcomplicating it. XEQT already holds everything in VOO and SCHD, so adding them separately just means you're betting against your own base allocation without a clear reason. The 5% fun money for SpaceX and Anduril is fine, just call it what it is - gambling money, not strategy. The real risk I see isn't the portfolio, it's whether you can actually stick to $4K/month once the mortgage, property tax, and two kids' activities kick in. Life gets expensive fast. Run the numbers with the house costs baked in and see if that savings rate still holds. Other than that, you're in great shape. DB pension plus this plan means you're basically playing on easy mode. Don't overthink it.

Plane-Term2972

The portfolio looks reasonable, but I'd ask whether VOO and SCHD are necessary alongside XEQT. Simplicity is often underrated. The real challenge isn't picking the perfect allocation—it's staying invested through market crashes

Shobed

SCHD, live off dividends.

Sufficient_Winner686

If 60k is your annual spend, SCHD alone would pay you 72k per year and your taxes would be covered or you’re right on the edge. This means you can mix in tax advantages high yield ETFs like SPYI and QQQI and make over six figures. Your hypothetical is my end game.

Jericho3434

Yeah, I take a few K’s from every winning trade and buy some SCHD. It’s to balance out all the tech I have. It’s hard shorting memory now with its crazy price action. If your timing is off it could blow up in your face. Long oil might work, but again, it’s so manipulated by governments. I’ll probably just hold off until something easy comes along lol

WRHull

SCHD’s yield is too low. Go for AGNC. $.12/share every month.

eeoogler

SCHD

Ahamadrayasbaboon

Prolly not in ‘26.  SGOV CTA when low XLP/XLV/XLU when low or SCHD anytime

Early_Divide3328

Be the turtle - quit being the rabbit. The turtle buys dividend ETFs like $SCHD and eventually wins years later from a giant dividend snowbal effecl. The rabbit keeps trying for the fast victory with quick trades and keeps losing quickly. https://preview.redd.it/1xq6wx1obwdh1.jpeg?width=1024&format=pjpg&auto=webp&s=d16f528455bd5bbb457ffdb95e70a3ac8092de13

SupraTacky

Sell all your money and put it in SCHD

SomePolack

SCHD I love you 

Ahamadrayasbaboon

If you’re that cautious, why not DCA a blend of SGOV, AVDV, and either SCHD or XLP XLV XLU? Highest odds come from starting today. 

gardeal23

Take a mil and put it in SCHD so you have schmuck insurance

RS3RRL

SCHD, a dog last year is now saving my port…

citygeek

So…. There are a whole host of funds with lower beta (measure of volatility) than the S&P 500…but higher returns than inflation. I’d START there. CLOZ - 10% CAGR Divo -12.5% CAGR SCHD - 12% CAGR Then when you get a bit higher, I’d put any money it earns into something broad and simple like VOO

SteakEater137

Off the top of my head WM and FLO oddly were at the top. A lot of real estate related stocks too, O and EPR for example SCHD in general had a strong day.

SomePolack

SCHD keeping me alive UNH one of it top holdings 

LineMission1628

What about VXUS?I was told to take out SCHD and was told to replace it with this stock .

taplar

The 15 year return for VOO is around 14.5% The longest trailing returns available for QQQM is 5 years at around 15% Both of those have diversification built in to different degrees. The primary draw of SCHD is the dividends. It's longest available trailing returns period is 10 years at 12%. Are you going to be using the dividends? If all you're doing is reinvesting, based upon historical returns you would be better off opting out of SCHD and going more into VOO or QQQM.

LineMission1628

Hey everyone, I’m still pretty new to investing and wanted to get some opinions. After doing a lot of research, I decided to start with **VOO, QQQM, SCHD, and Apple (AAPL)**. I like what each of them brings, and I wanted to keep things simple while I continue learning. That’s also why I haven’t invested much money yet I want to ease into it instead of throwing a ton of money at something I don’t fully understand. I already have a **Roth IRA** that’s managed through my financial advisor, but I also wanted to open a **Charles Schwab** brokerage account on my own so I could learn more about investing and have more than one investment account. Eventually, once I become more knowledgeable and comfortable with investing, I’d like to branch out into some riskier individual stocks with higher growth potential. But for now, my goal is to build a solid foundation and learn good investing habits before taking on more risk. Do you think these four are a solid place to start, or is there anything you would change? I’m investing for the long term, not trying to get rich overnight. I’d appreciate any advice or suggestions from people with more experience. Thanks!

mceehops

I mean you have seen a lot of replies, but geez, VTI or even SCHD or FXAIX 90% of that and just play with the 10%. Oof.

Straight_Ad_87

My play money port is VOO, QQQ, SCHD, and GPIQ. Someone want to guess the only one in the green today? 😂

FaythDarkHeart

thank god I took profits, guess time to park cash in boring shit like SCHD. bought MSFT 400c for 2$ sold for 6$ a piece , nice lil move

FlatPlutoer

Just buy SCHD or VOO on down days and stay away from options

Perfect_Painter_7863

people are saying fuck this and moving to SCHD

esoa

SCHD & BRK.B and chill

BagHoldersOfAmerica

Damn SCHD pumping, I guess the old people were right

Moist-Guava-732

my gainers today says value rotation is just getting started KO CMCSA DIS SCHD REITs

Rufusmortis

Me too. I put 75% of everything I had in SCHD back in November. I look like smart right now, but I know for a fact I am not. I just got scared.

empty-bensen

SCHD, my beloved

Ahamadrayasbaboon

No sweat…Covered calls aren’t the move. Take a look at options premiums. If a premium is $1 and the share price is $50, selling that call will protect against 2% of downside. They really work best in flat periods, but you have no way of predicting those. SPYI’s periods of outperformance will not make up for its periods of underperformance over time.  Defensive sectors have lower downside risk in exchange for much lower growth and pay 2.5%. XLP, XLU, XLV. SCHD is heavily defensive and pays 3.5%. You could try buying those opportunistically while DCAing your more speculative moves.  Defensives and SCHD have a lower likelihood of margin call than SPYI, and are a large part of my strategy of interest/dividend neutrality in my margin account. . 

Ahamadrayasbaboon

Stop looking at SCHD

mchgndr

Sounds good in theory, but you can already see how that hasn’t worked out for you. QQQ up 29% y/y, SCHD 20%.

artbystorms

Which is exactly why I have been investing more heavily in SCHD, mid cap ETFs and stocks outside of the tech sector since mid last year.

TheCozyRuneFox

I like VOO or VTI. These kinds of funds are where most of the money should be. Coca-cola is a good company. No reason to sell it at all. Just hold what you have allocate new money to index funds. you can definitely take on some more risk at your age. Keep it like under 20% of your portfolio tho. If you want to take on a little more risk but not insane, you can look at strategy ETFs like VTV, VUG, GARP, SCHD and such. these are diversified but still potentially carry more risk than a broad index fund. If you gonna do individual stock picking learn value investing.

InvestingNerd2020

Either VTV (Large cap value) or SCHD. Less volatile because the underlying companies are more stable. It should suffice in a 5-10 year investment.

I_pop_Jardiance

Only one ETF forever? Gonna draw a lotta hate here but...SCHD.

No_Solution_7940

I would probably start selling some every year, and buying SCHD. You’re paying long term capital gains, so it won’t be as bad. SCHD looks like a good hedge against tech, and I’m putting some into that every month at 60 years old

paragonx29

I would be selling off a big chunk if that and putting it in "safer" stocks and funds: SCHD/XOM/COKE, etc..

Left-Slice9456

Do the staged sell to lower taxes. QQQ is concentrated in Mag 7 that has massive earnings so it will just get bumpy before they return to ATH. But no one can tell you what to do as this is why I didn't invest in QQQ. At worst though you took the risk and even after selling a paying taxes did at least as well as VOO and can now put that in SCHD or whatever.

PleasantAnomaly

Do not buy SK hynix. It's extremely Over-valued. You want to do well in this market ? You have to live and breath about it. You have to dream about it in your sleep. I'm saying that it's very hard to pick stocks. Especially right now. I suggest a etf like SCHD. It's a basket of stocks that are safe, solid, and have a good return with dividends, in case of a downtrend. You won't get rich over night. But it's better than having the stock drop 17% in a day like with SK Hynix today.

greenpride32

Broadly I'd suggest you model out bear/average/bull cases for all your liquid assets (you can do more than just 3 cases such as -10 -20 -30 -40 for "bears") and use that to help determine what is the maximum nominal drawdown you'd accept on QQQ. Then you can liquidate an amount that makes this nominal drawdown amount improbable to impossible. The larger the weight of QQQ, the more impactful it is and vice versa. But truth is if QQQ crashes, everything goes down with it. Top 10 weights in SP500 and NAS100 are getting closer and closer to matching with each passing year. In other words, the most successful and profitable companies are concentrated in tech. NAS100 is no longer the risky index from 25 years ago, it drives the modern economy. I'm retried early as well. I still have individual stocks to liquidate, and pushing proceeds into VOO QQQM SMH SCHD VIG VYM JEPI QQQI. I have high conviction on the individual stocks so just converting when I feel it's advantageous to me. But it's your money, and if you feel like playing crystal ball with it is the best choice than by all means go for it. You're asking here because I'm assuming your fudiciary didn't suggest the panic sellout route.

Wise-Start-9166

Atleast BRK.B and SCHD are up today.

greenpride32

AVGO and NVDA are a very outsized part of my portfolio due to their gains (over several years to decade adding). I am slowly liquiding portions when I feel it makes sense if from taxable account or just trying to cut at near term highs rather than at lower points in tax advantaged. I still believe both will continue to outpace the SP500 for years to come. But regardless of conviction, it's foolish to be too heavily concentrated because you could be wrong and anything can happen. But I still want exposure to semi - so my funds go to a mix of VOO QQQM SMH SCHD VIG VYM and a little bit to QQQI and JEPI.

Bobcat-Stock

SCHD just keeps chugging along.

artbystorms

I've purposely been investing more into ETFs like SCHD and International ETFs that have less AI exposure over the last year. It seems like people rotating slowly out of AI has boosted these a bit.

Familiar-Suspect730

At 22, the biggest advantage you have is time, so the primary focus should usually be long-term growth, diversification, and keeping the strategy simple. The funds you've selected are all quality ETFs, but the key question is what role each one plays in your overall portfolio. Since you already have a VOO-focused brokerage portfolio, adding more U.S. dividend and value exposure through VIG and SCHD may create overlap rather than additional diversification. VXUS can provide international exposure, which many investors use to reduce reliance on the U.S. market. VNQ can add real estate exposure, but remember REITs already have different tax and risk characteristics compared with owning physical real estate. A possible approach is to first define your target allocation: - How much U.S. equity exposure do you want? - How much international diversification? - Do you specifically want dividends, or are you prioritizing total return? - How will this fit with your 401(k) and taxable accounts? At your age, avoiding unnecessary complexity is often more valuable than adding more funds. A simple, low-cost portfolio that you can consistently contribute to for decades will usually outperform a strategy that is constantly adjusted.

Jealous_Bookkeeper20

If you leave the US in 7 years, your destination country's tax treaty determines if the Roth IRA remains tax sheltered. Most countries don't recognize the Roth wrapper. You'll likely face annual taxes on dividends and capital gains back home, or you'll have to liquidate the account. If you end up liquidating it or paying local taxes, high-yield assets like VNQ and SCHD stack tax friction. VNQ's yield is taxed as ordinary income and it's highly inefficient outside a US tax shelter. A clean VTI and VXUS split's easier to manage and it's more treaty friendly. You've also got high look-through overlap. VOO, VIG, and SCHD share many of the same US large-cap holdings, which just layers the same domestic beta. Where do you plan to move after your US residency ends?

glimsky

Drop VNQ ASAP. SCHD should also be out, but it's 2nd place in the chopping block.

DependentAnimator742

So many of you have told the OP to buy and hold, then sell sometime in the future, after appreciation. You're missing a key point: the OP is looking for some immediate or near-term income - there's a sh\*#load of frustration and impatience in that post. The other thing y'all aren't hearing is that the OP seems to be stuck in a 'no/low risk but high reward' mindset. The OP mentioned having a bond fund/funds. That tells me real risk aversion. So the OP needs to relax a little AND be rewarded with seeing tangible portfolio increases in the Roth, my guess within the next 6 mnth or a year, before he/she jumps off a cliff. I'm going to suggest baby steps for this OP. If it isn't like this already within the Roth, change it to: 1/4 Bond of something like SGOV, for security, 1/4 Growth like VOO (which will be realllllly tough for the OP to have faith in, this can take years in a flat market), 1/4 in a middle-of the road ETF like SCHD, and 1/4 in covered call ETFs, like QQQI and SPYI. << That last one is where the instant gratification is. Further, you all are wrong to say ETFs don't appreciate. I'm looking at my Schwab now and I have some covered call funds - SPYI, for example - that has a 38% appreciation in less than 2 years, PLUS the 10%+ yield. The worst performer I've had (which I sold a few years ago) was JEPI. I have ETV, which gives me a solid 7% yield with only 12% appreciation in 2 years, but I keep it because it is tax-advantageous, somthing the OP doesn't need to worry about. I also have GPIQ and NIHI, among others. I'm trying to post a screenshot of a partial view of my portfolio on here but I can't seem to do so. All in all, I don't believe that over the long term the OP needs a big covered call portfolio. But to kick start their psyche, yes, it's a good move.

RiskBeforeReturn

One thing I'd think about is avoiding unnecessary overlap. VIG and SCHD both tilt toward dividend-paying companies, so make sure each ETF has a clear role in your portfolio rather than owning multiple funds that largely solve the same problem. At 22, having a simple allocation that you can consistently add to for years is usually more important than finding the "perfect" mix.

leaning_on_a_wheel

Why SCHD?

terminalguy007

A few things worth separating out here:1. \*\*Dividend yield vs. FCF yield\*\* — A stock paying 6% in dividends but only generating 5% FCF yield is paying out more than it earns. That's unsustainable. Always check FCF payout ratio (dividends / free cash flow), not just earnings payout ratio — earnings can be manipulated, cash flow is harder to fake.2. \*\*Tax treatment at your bracket\*\* — At $95k MFJ (2024), you're likely in the 0% or 15% qualified dividend bracket depending on total income. Most common dividend ETFs qualify. But REITs and bond funds pay ordinary income, which could push you into 22%+ effective on that $100k. Worth modeling the after-tax yield, not headline yield.3. \*\*Sequence of returns on dividend stocks\*\* — High-dividend stocks (utilities, REITs, telecoms) tend to be rate-sensitive. If rates stay elevated, NAV compression can wipe out 2-3 years of yield income. You're not "not eroding the pot" if the stock drops 20% while paying 5%.4. \*\*Concentration risk\*\* — To hit $100k on a $X portfolio with dividends, you'd need either high portfolio value or high concentration in risky high-yielders. Diversified dividend ETFs (VYM, SCHD) yield \~3.5-4%. You'd need $2.5M-$2.85M to generate $100k from those.The math works if the portfolio is large enough to use diversified, sustainable payers. If you're reaching for 8-10% yields to hit the target, that's where the principal erosion risk actually lives.

Various_Couple_764

Growth investors have gotten board with r/Bogleheads and have infested r/dividends. And instead of offering sound advice they frequently answer a question about dividned by recommending grwoth. and then they only recomend a tiny number of funds including SCHD and all are dividend grwoth fund that generate more growth than dividned. If you want good advice don't go to r/dividend on , Saturday, Sunday or and avoid it on holidays. Otherwise you will get standard growth investing advice and incorrect information on dividends.

SerMumble

SCHD. With $100k saved, you likely need to find new work ASAP. 3.5% from SCHD and on average around 8% annual growth totals around 10-11.5% average total growth is a fair balance between dividends and still accumulating value. Total dividends from $100,000 investment you're looking at around $3,500/year or four quarterly dividends of $875. It's not enough to survive on or do much with beyond some groceries and food. SPYM S&P500 is a more efficient investment but carries more volatility. More days you may have to sell when deeply negative and that will really suck.

srfdriver99

I saw a thread where someone clamed SCHD was tracking an equal-weight index. I posted the index SCHD _actually_ tracks, and they banned me for it. Just a ridiculous place run by complete idiots.

WinstonSalemSmith

SFL EPOL HYG SCHD IXC XLU MO also pays a good dividend but I am worried about declining tobacco use

Intrepid_Bid_495

AbbVie, Costco, any dividend focused index fund like SCHD if you don’t want to think about it

zenyogi2025

Dropped SCHD and VYMI, since I found about AVGV

Flutemangreg

Buy $10,000 worth of SCHD and just sit on it

ooommmnmmmooo

Started with $500. Made like $4K the past 3 months, until the latest geopolitical rug pull. Now I am basically down to \~$2K profits and 1 $400 GOOGL call expiry 8/21 that I paid a G for on Tuesday (down over 50% already). Maybe I’ll start trading again when our country has a functioning adult in charge. Til then I guess it’s back to SCHD

General_Leader425

Here’s the Reddit-ready version with the conviction dialed all the way up: **Title: I Have Achieved Maximum Conviction and Perfectly Balanced My Portfolio** NVIDIA’s financials are still good, so obviously I ignored that information and constructed a perfectly balanced index consisting of: * Rivian puts * Bumble puts * Bitcoin calls * AMC * GME warrants * BBY * BYND calls * 300 BYND shares * 100 AMC shares * Ford * GM * NVIDIA * Adobe * SPY * SCHD * Emerging markets * Covered-call ETFs * Municipal bonds * One share of Berkshire Hathaway **Additional fundamentals:** * $16,000 on my disability debit card * $80,000 in student-loan and credit-card debt * Fixed income of $1,760 per week * No recognizable risk-management strategy My investment thesis is that Rivian is useless, meme stocks are eternal, and owning one Berkshire share legally makes me Warren Buffett. I want to be completely clear: my conviction in this allocation could not possibly be higher. I have reviewed every position, considered the risks, ignored most of them, and concluded that this is the greatest portfolio ever assembled by someone with access to a brokerage account. This portfolio was professionally allocated using the Ask Reddit feature. Not financial advice. Barely financial activity.

SilverCaptainBuggy

Investing at a young age is a great way to increase your overall wealth. Bull markets are cyclical though, and this bull market is pretty long in the tooth. Right now, it seems hard to lose money in the market, but don't be fooled, markets can and do go south in the blink of an eye. Having said that, dollar cost averaging of ETFs like SCHD or even SPMO will long term do ok. Individual stocks have both higher risk and rewards in general. If you have the time to do company specific research there is a good amount of opportunities, but this approach does mean you will be spending your free time reading 10k reports, etc. If your really into the topic, I'd recommend The Intelligent Investor by Benjamin Graham.

captain_ahabb

SCHD seems about on par with HYSA rates to me

DrinkOk4862

HYB from T Rowe Price and SCHD from Schwab

Jericho3434

SCHD gang checking in 👍

edm4un

That’s why most of my money is in index funds and SCHD.

Asleep_Mess5264

You’re already 90 percent of the way there just by wanting to set it and forget it tbh. VOO, SCHD, maybe a bit of VXUS if you want international, then auto invest every paycheck and ignore the noise. The hardest part is not tinkering when the market is red, so set it up, don’t look too often, and let time do the heavy lifting.

Significant_Speed854

SCHD lol

Sea_Life4

I was thinking like SOXQ or SCHD. I always wondered why people buy the ETF and not the underlying stocks. I suppose there must be some kind of reason

jmardoxie

You could split with Fidelity SP 500 like FXAIX and blue chip like Fidelity Blue Chip Growth. If you want to minimize risk and avoid an AI correction consider a dividend fund like Swab SCHD.

sharp315

dividend funds typically do not generate more tax than growth funds. SCHD is up 17.2% YTD while SMH is up 63.3% YTD. you will not pay less tax on 63% earnings as compared to 17% earnings.

sharp315

highest growth assets should be in the Roth first (and HSA if you have one as that is the same tax structure). next tier is Trad IRA / 401k - while these accounts are eventually taxable the intent is that you will be retired when you start drawing and so your tax bracket will be much lower than it is right now and presumably lower than any LT or ST capital gain amounts in a taxable brokage. where you allocate bonds will depend on which type of bonds you hold and whether the dividends are qualified or not - either trad IRA or brokerage could make sense. Roth would not. I do not hold bonds but I do hold high yield equities (SCHD / VTV) and keep those in my taxable brokerage.

Keeltoodeep

Been adding to my SCHD like a boomer to derisk my port. Have about a 5 year time horizon until I have to pull $300K or so for a downpayment so I am slowly desrisking by allocating any additional funds to value/income indexes. My direct plays have had a massive run ups the past 5 years and the growth etf is the third pillar. Letting the winners ride and adding derisk plays because of my shortening time horizon.

Avid_Reader87

Weird seeing SCHD on the top trades list.  Are people rotating into safer plays?

Freebie1337

If it makes it any better: if there will be a 30 year downturn, the whole world will feel it, not only you. So you’re basically on the same page as everyone except like 1 % who managed to time the market. And that 1 % probably kept cash all their life and missed all the rallys. Just keep investing if it goes down, thats how you will be guaranteed to succeed. If you’re retired maybe put all your investment in SCHD or something.

SomePolack

SCHD below $32 good buy and hold rest of year Solid collection of defensive stocks including energy

anusbarber

i'd rather have more VTV than any SCHD.

Ok_Problem426

Funny I was going to say the exact same thing, perhaps for a different reason. High quality pharma has relative resilience in recessions, is widely undervalued because of all the cash chasing tech (healthcare is at its smallest fraction of the broader market since the mid 80s despite representing a similar share of profits) and is well positioned to benefit long term from an aging population, long life expectancy, and AI advancements over every horizon. Drug qualification is the very clearly the lowest hanging fruit for marked advancements resulting in direct commercialization of AI...but it’s big pharma that will realize the long term profits. I haven’t picked an ETF or fund and I’m building up a cash and more defensive equity position (mostly bought SCHD)

sharp315

came here to recommend SCHD if people are looking for a tech-lite option

RevolutionaryPhoto24

A trade on the board for 2k SCHD shares. I wonder what they bought instead…..

RagnarokWolves

SCHD tracks the Dow Jones U.S. Dividend 100 Index. The dividend payouts are similar to what you'd get with a HYSA. Paired with the stock price appreciation, it just barely lags behind the S&P 500 in the long run. Generally, it doesn't suffer as much in bad markets but it doesn't go up as much in good markets. Though if you need some money now, it's a nice option to get some funds without needing to sell off anything. If it's in a taxable brokerage, you will pay taxes on the dividends for the year you get them.

doucasandkapetanakis

Yep, VTV used to be JPM and BRK as top holdings, but now MU took over at 4%. Similarly, VYM is now 8% Broadcom (AVGO)… in fact, Broadcom and Oracle make up 10% of VYM which seems wild. SCHD holdings seem to have completely avoided the AI/tech boom, which shows given its recent performance.

Straight_Ad_87

Makes me itch to gamble 0dtes. But I happily parked all my money in VOO, QQQ, and SCHD last month to give my finances a breather from my degenerate gambling and I’m finally making money consistently.

Immacu1ate

Nothing really different. I did start adding some SCHD to have some diversification from SP500.

Vast_Newt_1799

I would just invest in S&P 500(SPYM VOO etc) - top 500 companies and gets reorganized to include/remove companies World Market Fund(VT) - this is broad domestic market and also includes international stocks Dividend ETFS(do this in your roth but SCHD and DGRO) generally blue chip companies and pays a yield but also growth of roughly 10% Growth Stocks(QQQM VUG or SCHG) - stocks that are expected to outperform the market but high volatility downsides is greater but upside is the same Doesn't seem like you want to frequently monitor stocks so I would just pick ETFs that best represent your risk tolerance which is likely some combination of SPYM, SCHD, VT, and QQQM

Classic_Chapter_1503

SPMO, VGT, SCHD, FNDF. Growth aggressive growth, growth and icome international. Beta is less than voo and chill.

Classic_Chapter_1503

I hold SCHD in place of a bond position and have been investing since 2003.

Jericho3434

I’m kind of similar, Nasdaq 100% in 401K, Roth IRA 100% VT. VTI, VXUS and SCHD in taxable brokerage.

Bgabes95

Just 2: NTDOY and SCHD

Bgabes95

Anything is possible. You can have both and diversify, but definitely consider it more long term than anything. My biggest positions are NTDOY and SCHD, and I plan on keeping them in my Roth IRA so I don't pay taxes on the dividends. I'm a newer investor but these are the ones I see most value in based on how cheap they are currently compared to most other index ETFs doing the same thing. I'm also considering investing in QQQI/QQQM and one of the higher yield SPY ETFs. NTDOY is more so for diversification and the fact that they're just a solid profitable company in gaming that I personally see growth in for the next few decades. NVDA is solid, but I think all semiconductors and most tech is incredibly volatile and uncertain with AI development futures. Sure, it's going parabolic, but for how long? AI might be utilized well in the future, but it's getting a lot of push back for good reason, and is mostly unprofitable outside of the companies getting their stock bought out to build and run data centers that are getting cancelled left and right. Do what you feel is right though, do as much research as possible and take it day by day!

-Mothman_

It depends on your risk tolerance and goals. But generally with 300k, a good split could be 1/3 in high growth stocks - so maybe an index fund like the Dow Jones or QQQ or a Mag 7 index. Another 1/3 in defensive stocks, cash cows and solid dividend growth stocks (SCHD does this for you in a fund) or just a broad market fund for simplicity. Then the last 1/3 in bonds or high yield savings accounts where you can deploy the capital if there is ever a market crash or good discounts in the market. Or you can think to the split you want for yourself.

KMPItXHnKKItZ

A dividend is cash in your hand without having to sell shares and in a dividend growth stock like SCHD, it grows your investment even more without you having to buy more shares with your own cash every time. Growth funds like VOO pay dividends too. When bill time comes and you need cash to pay the bill, would you sell a growth fund to pay for it? Or would you rather turn DRIP off once and pay it with your dividend while your shares remain intact? I know which I would rather do. I do not think that 100% growth investors understand that in times when the market is down, and when you are not yet ready to sell otherwise, it is very attractive to have high dividends that you can use to pay for things or get cash flow while keeping your shares intact instead of having to sell your growth while the market is down. I assume that you are aware that the most solid companies keep paying dividends out even in bear markets because the whole point of dividends from a company's point of view is to keep investor confidence in the company and to attract investors even in bad times. And if you are one of those people that believes in the 4% withdrawal rule for growth funds, know that the guy that came up with that nonsense abandoned his own advice and left the market in 2022 when it went bear. I invest a lot of money in both growth and dividends, so I understand both perspectives and having both compliments each other, but of course not everyone can afford to invest meaningful amounts in more than one strategy, so for most working class people 100% growth is the best.

Mammoth_DonkeyKong

I see SCHD and VTV as not only quality dividend funds of a value base, but also decent growers with each gaining an inflation adjusted 9% per year over 10 years. They also win when SPMO doesn't, so I'm creating more winning days and months with this approach. SPMO is the volatility lean, wins big when the S&P is up and not so much when it's down. SPMO rebalances and reconstitutes twice a year to try and rotate to winners consistently. I guess I could look for value based mutual funds vice ETFs, so maybe I'll take a look just to see how they might compare to SCHD and VTV.

Employee28064212

Dollar cost averaging on a schedule really can be the way to do it where you feel the least emotionally invested. Built my SCHD position over the span of about 90 days where that was all I bought, 'x' number of shares each day. There was fluctuation in the market during that time, but with more time passed, it's appreciation has meant that current market fluctuation doesn't really affect it. I see the same thing with some of my individual stocks, but it usually means choosing commons sense companies and not meme stocks, risky new tech, or anything of that sort.

Mammoth_DonkeyKong

Thanks for this response and explaining your thoughts. I guess I am being reasonably aggressive but anchoring with stability using SCHD and VTV. This setup helps to have a winning solution more often than not. SPMO is pretty volatile, yesterday the S&P was near breaking even, yet SPMO was down 2.89% because of the weighting currently. On days where the S&P is up 1.5%, SPMO will likely be up 4.5 to 5%. I do understand dividends and that's why I am choosing SCHD and VTV as a value play with decent growth but also winning when SPMO isn't. They compliment each other quite well. As u/gbdgdh pointed out, this setup beats VTI only, VT only, and 70% VTI & 30% VXUS. With a worst case drawdown of -18.5% over that 10 years, which recovered in roughly 4 to 5 months. Maybe the title is a little confusing, but I'm not trying to go so aggressive that I lose my ass with extremely volatile assets. SPMO gaining an inflation adjusted 382% since inception in 2015 is pretty darn good. SCHD and VTV are up over 150% each on total return during the same time period. Given my 10 year timeline, 382% and 150% each in SCHD and VTV sounds pretty good. Given the 10+ year history on each of these, I think they are pretty solid quality ETFs. Lastly, and the real key here, I am all set with my 401K and taxable. Taxable should be generating $60K+ in passive dividend income without selling a single share, then my pension and social security will have me in the $130,000 income range without touching my 401K. I will then begin Roth conversions of the 401K to reduce RMDs. If this Roth plan gains as well as I hope, I may rotate out of dividends in my taxable to reduce tax hit and use the Roth for tax free income. As I said, I'm doing well for myself, so retirement shouldn't be an issue.

SomePolack

Continuously buying SCHD if it’s under $32 

Confident_Loan_6146

I have 279K in SCHD, VYM, SPY, and VXUS at 24. Will continue to contribute.

AudienceBubbly4817

SCHD duh.