Battle of the Dividend ETFs: VIG vs. SCHD - Who wins? (Part I)
In this two-part series, we analyze two popular dividend-focused Exchange-Traded Funds step-by-step, and I share which one I would buy.
Important: This is part I of a two-part series.
Dividend-paying stocks are popular, and with reason. Who doesn't love getting consistent fresh cash in their investment account without having to do anything other than hold a particular investment?
It is a top example of passive income!
Free money? Sign me up!
That said, one thing that might keep many people confused and with paralysis analysis is that hundreds (maybe thousands) of publicly traded companies make these payments. It is estimated that nearly 75% of the companies in the S&P 500 pay dividends to shareholders.
How do you select the best of the best? Should you pick individual stocks for this? Although I love individual stocks, one drawback is that selecting them one by one can get expensive and time-consuming.
Solution? Enter the wonderful Exchange Traded Funds!
As shared in this recent post, ETFs are a great and efficient way to invest in a pool of various stocks all at once - through one single investment.
For this series, I've narrowed my analysis to two well-known funds whose core objective is to track the performance of companies with a history of consistently paying and increasing dividends.
VIG vs. SCHD - which one is best? Is there a winner between the two? Why?
You'll love this post if you want to learn how to analyze ETFs efficiently (or would like a refresher) [and/or] if you're looking for new fund ideas for your investment portfolio.
Grab your favorite beverage and a pen and paper if you'd like to take notes.
Let's do this!
