I heard SCHD is a good investment, anyone confirms or has a reason to invest to something better than this? TC: 200k
How old are you and what is your investment strategy?
If you're buying high dividend in a retirement account, Roth, or HSA then that's okay. Don't buy in a taxable as it will increase your taxable income. That being said SCHD and JEPI are popular.
Care to elaborate on taxation part?
When we buy VOO or VTI, we aren't capturing the long term capital gains each year so it doesn't affect our income in a taxable account. The same can't be said for high paying dividends like JEPI. Say you buy $1M in JEPI. It was yielding close to 9% earlier but now it's 7.87%. This will add $78700 to your taxable income each year if you're still working. Yes, it's extra income but you will pay your highest tax rate on it.
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If you are not near your retirement, high dividend etfs aren’t really a good choice. A broader index fund always yields higher total return than a high dividend paying fund. Just look up Schd (best of the lot) vs spy or QQQ over 10 years, 5 yrs.
I have invested a lot on VOO , VTI and VGT. I am trying to diversify even more with high dividend ETF.
It doesn’t get any more diverse than VTI. It’s the total market. So if diversification is your goal, you just need increase allocation of VTI. If you are young, you end up losing money over the years through a dividend ETF vs SPY/VOO. Maybe instead of dividend etf, you can consider a small chunk at individual growths stock that you are super convinced about.