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- Even though the Schwab U.S. Dividend Equity ETF offers investors an attractive blend of dividend income and dividend growth, a reduced level of diversification can be noted.
- Today’s article aims to reduce the ETF’s weaknesses by enhancing it with January 2025’s top 10 high dividend yield companies and 5 individually selected dividend growth companies.
- I will show you how to allocate the amount of $100,000 across SCHD and these 15 individually selected companies to increase your portfolio’s level of diversification.
Investment Thesis
Last week, I published an article on Seeking Alpha, in which I introduced you to my top 10 high dividend yield companies for January 2025. The article highlighted companies with an elevated capacity to produce dividend income, as well as those with attractive Valuations and an increased likelihood to deliver sustainable dividends.
Today’s article aims to show you how to strategically enhance the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) with January’s top 10 high dividend yield companies in addition to 5 individually selected dividend growth companies. I have added these dividend growth companies to the portfolio to reach a strategic balance between dividend income and dividend growth.
The objective of this dividend portfolio is to offer investors an increased portfolio capacity to produce dividend income in addition to an elevated level of diversification when compared to only investing in the Schwab U.S. Dividend Equity ETF. I have taken into account the current composition of the Schwab U.S. Dividend Equity ETF when distributing the ETF across its current companies and sectors it is invested in.
READ FULL ARTICLE HERE!