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Schwab Dividend Equity ETF (SCHD) rose 5.2% year-to-date after 4 years of underperformance. It yields 3.59% with a 0.06% expense ratio.
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Amplify Enhanced Dividend Income ETF (DIVO) uses covered calls on 7% to 20% of its portfolio. DIVO yields 6.32% monthly.
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iShares Treasury Bond ETF (TLT) yields 4.42% monthly and hedges against recession. Long-term bonds attract investors when the Fed cuts rates.
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Investors rethink ‘hands off’ investing and decide to start making real money
If you are retiring or you’re already retired and you have a portfolio that includes dividend ETFs, it’s a good idea to make sure you have Schwab US Dividend Equity ETF (NYSEARCA:SCHD), Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO), and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) in your portfolio. These are some of the most well-balanced names that can help you squeeze the most out of what you have without taking on disproportionate risk.
Sure, it sounds tempting to chase ETFs that promise you both a double-digit yield and exposure to hot tech stocks. But these ETFs are untested in a downturn. You should stick to time-tested dividend ETFs that have managed to compound investors’ holdings over the long run and haven’t been knocked out by a single selloff.
Let’s take a look at why having these dividend ETFs is still key to having a successful retirement.
The Schwab US Dividend Equity ETF lost its luster at one point, but it kicked off 2026 on a very strong note. It is up 5.2% year-to-date already and can go a lot higher to close the gap between other dividend ETFs. Investors who got impatient due to SCHD’s 4-year stretch of underperformance are now kicking themselves.
This ETF remains the best option if you want a vehicle to both snowball your holdings while providing you with upside in a dependable way. No other comes close to doing what it does. They either lack the yield or lack the upside, or they likely have a setup that makes them highly risky during market downturns.
SCHD gives you a 3.59% dividend yield and an ultra-low expense ratio of 0.06%. I expect it to remain the gold standard for retirees.
The Amplify CWP Enhanced Dividend Income ETF is the best way for you to get an amplified yield without taking on too much risk. This ETF makes use of covered calls in a responsible way and is not too aggressive with them.
DIVO generates income from the dividends paid by its underlying stock holdings and the premiums collected from selling covered call options. It holds a portfolio of 30 to 40 stocks and selectively uses its portfolio and writes covered calls on an ad-hoc basis. DIVO dedicates some 7% to 20% of its portfolio at any given time, and this makes it capture much more upside.
