Judging the Two Biggest Dividend ETFs

07/12/2023 16 min

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Episode Synopsis


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SCHD vs VIG. Which dividend ETF is best? That's the question we try to answer by looking at why these two dividend ETFs are even appropriate to compare (they're two of the largest dividend ETFs out there) and which is more suited for dividend investors who appreciate growing their income streams over time. Today's yield is of less importance when you consider the pace at which dividend distributions are growing over time. For example, SCHD has managed to grow their dividend payouts by 10% per year over the past eight years. That means your yield-on-cost starts to rise very quickly over time and the income you're getting per dollar invested starts to exceed over 7% in just eight years' time. After looking at these two big dividend ETFs, it's clear there's one that comes out ahead from where we're sitting.