Building A $100,000 Dividend Portfolio: Enhancing SCHD's Income With High-Yield Stocks

Frederik Mueller
9.96K Followers
(23min)

Summary

  • The Schwab U.S. Dividend Equity ETF offers investors an attractive mix of dividend income and dividend growth, but its potential for the generation of dividend income is limited.
  • I will show you how to build a $100,000 dividend portfolio that uses the Schwab U.S. Dividend Equity ETF as a core holding with 15 high dividend yield companies.
  • The portfolio offers investors a superior capacity for income generation, reflected in its Weighted Average Dividend Yield [TTM] of 6.37% compared to the 3.56% Dividend Yield [TTM] of SCHD.
  • The attractive Valuations of the selected companies is underscored by the portfolio’s Weighted P/E [FWD] Ratio of 14.62 compared to the 20.95 of the S&P 500.
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Investment Thesis

Here on Seeking Alpha, I have already highlighted in previous articles my conviction about the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) as an excellent investment option for long-term investors that want to blend dividend income and dividend

This article was written by

9.96K Followers
I specialize in constructing investment portfolios aimed at generating additional income through dividends. My focus lies on identifying companies with significant competitive advantages and strong financials that can provide you with an attractive Dividend Yield and Dividend Growth, thus enabling you to augment your dividend income annually. By combining high Dividend Yield and Dividend Growth companies, you can gradually reduce your dependence on the broader stock market fluctuations.I also assist you in achieving a well-diversified portfolio across various sectors and industries. This diversification strategy aims to minimize portfolio volatility and mitigate risk. I also suggest incorporating companies with a low Beta Factor, which further contributes to reducing the overall risk level of your investment portfolio. My suggested investment portfolios commonly consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction.The selection process for high dividend yield and dividend growth companies within the investment portfolio is meticulously curated. I prioritize the pursuit of total return, encompassing both capital gains and dividends, rather than solely focusing on dividends in isolation. This approach ensures that your portfolio is designed to maximize returns while considering the full spectrum of potential income sources. By leveraging my expertise, you can benefit from a well-crafted investment portfolio that aims to generate extra income through dividends, while reducing risk through diversification, and prioritizing total return.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, CVX, PEP, VZ, ZURVY, MO, ARCC, QSR, VICI, PSX, PBR, MAIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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