Motley Fool analysis compares high-yield and dividend growth ETFs, favoring Schwab's SCHD for balanced returns
The Motley Fool's analysis contrasts high-yield dividend ETFs, such as Global X SuperDividend U.S. ETF (DIV) with a 12-month distribution yield of 6.55% and a five-year average total return of 6.4%, against dividend growth ETFs like Vanguard Dividend Appreciation ETF (VIG), which yields 1.48% but boasts a five-year average annualized total return of 10.2%. The analysis suggests Schwab U.S. Dividend Equity ETF (SCHD) as a balanced option, offering a 3.13% yield and a five-year average annualized total return of 10%, nearly matching VIG while providing higher income. The author recommends SCHD for investors seeking both stable dividend growth and high yields.
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