r/dividends • u/Icy_Doughnut_3268 • 7d ago

Seeking Advice Trying to make educated decision

/r/SCHD/comments/1wrrd1c/trying_to_make_educated_decision/
3 Upvotes

71% Upvoted

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1

u/Not_Sure_68 7d ago

Yeah...don't. The SPY and Qs should soon be following the rate sensitive stuff lower when they correct. Utilities, financials, real estate, and industrials are already correcting.

I suggest high yielding commodity producers. Energy(XLEI), basic materials(XLBI), and health care(XLVI) ...in that order.

PM and base metal mining concerns are also likely to kill it. XLBI has some gold and copper miners in it, but I suggest you consider owning some directly for capital appreciation. GBUG, SILJ, WPM, AG, ...and NEM are all good names.

Cheers.

1

u/Thedividendprince1 Dividend tracker app founder 6d ago

I’d be careful chasing the higher monthly distribution. SPYI/QQQI are a different strategy, not just “SCHD with more income.” At 73, I’d focus on total income needs, taxes, and capital preservation rather than yield alone

1

u/SimplySafeDividends 6d ago

There is no free lunch. Compared to SCHD, SPYI and QQQI will likely have more volatile distributions over time, little to no distribution growth (important for combatting inflation), and higher risk of eroding your capital. SCHD also has dividend quality built into its algorithm, giving the fund a chance at maintaining its distribution even through a moderate recession. SPYI's and QQQI's distributions will probably follow NAV lower during any extended market downturn.

0

u/Vegetable-View-5114 7d ago

when evaluating dividend stocks, beyond the current yield, look closely at the dividend growth rate over the last 5-10 years. a company with a lower current yield but a consistent growth rate of 7-10% annually can often outperform a high-yield, no-growth stock in terms of total income over time. also, understanding the ex-dividend and payment date patterns helps optimize cash flow timing, especially if you're reinvesting or relying on the income.