Schwab US Dividend Equity ETF

SCHD

Market cap $71B

The two ETFs funds listed here can be safer alternatives to simply tracking the S&P 500. They are are lower-volatility investments, offering above-average yields of more than 3.7%.

I share two dirt-cheap high-quality dividend growth stocks with yields up to 9%. Strong dividends, buybacks, and deep discounts combine for a rare risk-reward setup. I detail why this Thanksgiving, I am expressing gratitude for these two Black Friday bargains.

This article presents a diversified $100,000 high-yield dividend portfolio for November 2025, blending income, dividend growth, and reduced volatility. The portfolio features individual stocks like Mastercard, McDonald's, Duke Energy, Alphabet, and Apple, alongside ETFs such as SCHD, JEPQ, and RQI. Key metrics include a weighted P/E Ratio of 17.18, strong sector diversification, and a focus on companies with low beta and high dividend growth rates.

Dividends are “real” because they reduce book value, not earnings, preserving valuation anchored to P/E multiples. Ex-dividend price drops make stocks temporarily cheaper, improving fundamentals for dividend growth and value investors. SCHD's screening emphasizes quality, free cash flow, and dividend durability, supporting long-term outperformance and mean reversion.

Companies must meet certain dividend and earnings criteria to be included in the Schwab U.S. Dividend Equity ETF (SCHD). SCHD has averaged a 3.35% dividend yield over the past five years.

ALPS Sector Dividend Dogs ETF continues to underperform the S&P 500 and leading dividend ETFs, despite good value metrics and sector balance. SDOG suffers from higher volatility, deeper drawdowns, and a relatively high expense ratio compared to peers. In particular, Schwab U.S. Dividend Equity ETF™ offers a similar yield with lower fees, lower risk and better historical performance.

High-yield ETFs can provide investors with a solid stream of income in retirement. The Schwab U.S. Dividend Equity ETF is a solid dividend ETF that can help investors avoid value traps.

Schwab U.S. Dividend Equity ETF is a rules-based, quantitative strategy focused on high-quality, dividend-paying companies with accelerating fundamentals. SCHD's recent underperformance is due to disciplined rebalancing and market preference for speculative tech, creating a contrarian buying opportunity at a valuation discount. The ETF's methodology filters for durability, capital efficiency, and dividend growth, positioning SCHD for strong returns when fundamentals regain market favor.

Dividend growth stocks have a simple premise. Get low yields now that grow rapidly and generate high income by the time you retire.

AI stocks are getting a lot of hype right now. But history shows that revolutionary technologies almost always become overvalued and overinvested, leading to eventual corrections. Disciplined, long-term investing - resisting FOMO and sticking to a well-designed plan -remains the best path to enduring wealth.