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

2025-02-19 18:00:00 ET

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.

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 growth to steadily build wealth over time.

However, with a current Dividend Yield [TTM] of 3.56%, the ETF offers investors limited potential for the generation of dividend income. For this reason, in this article, I will show you how to build a $100,000 dividend portfolio with the Schwab U.S. Dividend Equity ETF as a core-element while enhancing the ETF with February’s top 10 high dividend yield companies and five additional high dividend yield companies that can help to increase the ETF’s potential for income generation via dividends. Simultaneously, these high dividend yield companies can increase the portfolio’s level of diversification while reducing its volatility.

The objective of the portfolio I am presenting today is to significantly increase the Schwab U.S. Dividend Equity ETF’s capacity to generate dividend income. Such a portfolio is particularly attractive for investors looking to generate a significant amount of extra income via dividends, superior to the dividend income you can reach when only investing in the Schwab U.S. Dividend Equity ETF. Within the past weeks, several of my followers have asked me to publish an article about such a dividend portfolio....

For further details see: