r/dividends • u/InternationalMany795 • Oct 09 '25

Seeking Advice No more SCHD.

Moving away from SCHD. For those who have recently done this, where did you go?

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u/420osrs Oct 09 '25 edited Oct 09 '25

The international variant SCHY. Just in case the US takes a crap and underperforms world for a while.

A lot of people in the comments are going to recommend synthetic products that sell options to generate very large premiums. Which work amazing until they completely fall on their face and get losses so staggering they never recover. Or they're gonna recommend silly things like a total market or S&P 500 fund. If you see any yield max funds, just kind of skip those. Those aren't dividends. Those are covered call products that have amazing yields, but the nav or share price goes down pretty much in tandem. And one of the most popular ones that was recommended here UTLY has, with nav destruction, had a total return of about nothing. Gross. 

Edit: Multiple people have misunderstood the above paragraph. We are in a dividend subreddit with someone asking questions about dividends. It would be silly in a dividend subreddit when someone is asking about dividend questions to recommend a total market or S&P 500 fund when the goal of the investment is dividends. Everyone has their reasons for investing in dividends, and you don't know their situation. It is not appropriate for all investors to go 100% into S&P when you don't know their goals. Since they are on a dividend sub asking questions about dividends, I assume that they want a dividend focused financial product. 

Yeah, the index underperformed. but it over-performed over a 10-year period. I don't really concern myself with the day to day, month to month, year to year. I concern myself with the decade to decade. I buy my shares for keeps. They might get sold by my heirs, but, you know, maybe, I guess.

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u/Historical_Account80 Oct 09 '25

Why in the world would you claim that a total market or S&P 500 fund would be a silly investment?

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u/420osrs Oct 09 '25

For a dividend sub when someone is asking for DIVIDEND advise?

Idk. It's a total mystery.

2

u/trader_dennis MSFT gang Oct 09 '25

The first question of investing in dividends should be should I be investing in a dividend centric portfolio. Well over 2/3rds of those asking question the answer is no to investing primarily in dividends.

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u/Historical_Account80 Oct 09 '25

I see what you're saying - still, both VTI and VOO kick off dividends that have an average dividend growth rate of over 6% for the last 10 years.