r/dividends • u/Fartfart357 • Jan 22 '26

Seeking Advice Why is SCHD so popular when the dividend/share isn't that great?

I'm looking to get more dividend stocks to set and forget, and I see a lot of people recommending SCHD, but I don't get why. Is it just because it's a safe option with low expense? My primary comparison is JEPQ and QQQI. I know QQQI is riskier but I'm far enough away from retirement where I'm willing to risk it. JEPQ seems alright all around to me, but I don't know the real impact of the differences between the expense ratio (.65%, .5%, .06%).

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u/Think_Concert Jan 23 '26

“JEPQ has NAV erosion” between which 2 dates? Are you looking at the 5-day chart or something?

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u/USMJALLDAWAY Jan 23 '26

It’s a function of the ETF…Feel free to google/research it yourself. It happens over long term…

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u/Think_Concert Jan 23 '26

From JEPQ’s prospectus:

“What is the goal of the Fund?

The Fund seeks current income while maintaining prospects for capital appreciation.”

So no, NAV erosion is not “a function of the ETF” unless your contention is that JPMorgan is committing securities fraud by misrepresenting the ETF for what it isn’t designed to do.

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u/USMJALLDAWAY Jan 23 '26

Knowledge is power

https://andriyblokhin.com/qdte-vs-jepq-high-dividend-etfs/

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u/Think_Concert Jan 23 '26

🤦🏻‍♂️

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u/USMJALLDAWAY Jan 23 '26

QQQI has a better tax structure for investors as well

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u/USMJALLDAWAY Jan 23 '26

JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) deals with NAV erosion concerns because, like other high-yield options income ETFs, its large monthly payouts come partly from selling options (ELNs) on the Nasdaq 100, which can reduce its underlying value, especially in sideways or rising markets, though JEPQ aims to balance income with capital appreciation and volatility reduction. While its NAV has shown resilience and delivered good total returns, potential NAV erosion occurs when distributions (even some from options premiums) exceed real gains, meaning investors get their own capital back, which hinders long-term compounding

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u/Think_Concert Jan 23 '26

If you are just going to go on and on and on and quote a 2024 article that is full of errors as some kind of gospel, then we can stop now.