Overview
- Coverage on June 21 highlighted SCHD as an index‑based income solution that tracks the Dow Jones U.S. Dividend 100 Index and requires companies to have raised dividends for at least 10 consecutive years.
- SCHD currently yields about 3.2% and uses a composite quality score that factors in cash flow to debt, return on equity, yield, and five‑year dividend growth.
- VIG emphasizes dividend growth and heavier technology exposure, with top holdings such as Broadcom, Apple and Microsoft, which has supported stronger price appreciation.
- Sector weights as of May 31 explain their tradeoffs: VIG is much more tech‑heavy (about 28% information technology) while SCHD has larger allocations to energy and consumer staples, which drives its higher payout.
- Advisors recommend pairing SCHD and VIG to blend income and growth and sometimes adding higher‑yield sleeves like covered‑call ETFs or REITs, though those choices raise payout volatility, principal risk and differing tax treatments.