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Two Dividend ETFs Stand Out for 2025: SCHD for Quality Yield, VYM for Broad Diversification

Fresh guidance points investors to income-focused screens to help cushion potential market volatility in 2025.

Overview

  • Yahoo Finance highlights SCHD as a high-yield, quality-screened pick right now, citing a payout more than three times the S&P 500 average.
  • SCHD tracks the Dow Jones U.S. Dividend 100, requiring at least 10 years of dividends, consistent cash flow, strong balance sheets, and solid profitability.
  • As of Oct. 7, top SCHD positions include AbbVie, Lockheed Martin, Merck, Amgen, and Cisco, according to Charles Schwab.
  • A companion analysis names Vanguard High Dividend Yield ETF a 2025 buy for breadth, holding 579 stocks with its largest sector weight in financials at about 22%.
  • VYM’s tech exposure is roughly 12% versus over 33% in a broad S&P 500 fund, a tilt the article says can help reduce volatility and support steady income.