Combining SPYD, SCHD, and DGRO offers a diversified dividend strategy with a 3.1% yield, balancing high-yield exposure with fundamental quality and long-term dividend growth.
The article recommends SPYD as a high-yield ETF with a 4.4% yield, built from the 80 highest-yielding S&P 500 stocks.
The article highlights SCHD's focus on balance sheet strength, dividend quality, and growth, with a 3.2% yield.
The article cites DGRO's dividend growth strategy with a modest yield of 1.9% and nearly 400 holdings.
Investors often struggle with portfolio overlap by holding similar high-performing funds. By combining SPYD, SCHD, and DGRO, investors can create a balanced dividend strategy that prioritizes yield, quality, and growth while minimizing sector concentration.
Combining strategies like high-yield, dividend quality, and dividend growth helps reduce portfolio overlap and mitigates risk by ensuring the portfolio is not overly concentrated in a single sector or investment style.