VZ - Why SCHD Should Be A Strategic Core Position Of Your Dividend Income Portfolio

2024-04-30 18:00:00 ET

Summary

• In this article, I will showcase why I have decided to include additional SCHD positions to The Dividend Income Accelerator Portfolio.
• In addition, I will demonstrate in greater detail why this ETF should also be a core component of your dividend income portfolio.
• The ETF’s combination of dividend income and dividend growth, and its focus on companies that pay sustainable dividends, make it a superior choice in terms of risk and reward.
• Lockheed Martin (with 4.29% of this ETF), Chevron (4.20%), PepsiCo (4.17%), Verizon (4.03%), and Cisco (4.02%) are presently the largest positions of SCHD.

Investment Thesis

In times of fluctuating market conditions and increasing prices, establishing an additional source of extra income is more important than ever. With its attractive combination of dividend income and dividend growth, SCHD ( SCHD ) offers investors an appealing solution.

When I started building The Dividend Income Accelerator Portfolio about eight months ago , I selected SCHD as its first acquisition . At that moment in time, I mentioned that choosing an ETF as a first position for this portfolio would allow us to invest with a reduced risk level from the get-go. This approach also allowed us to elevate the probability of positive investment outcomes from the very beginning....

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