2 Top-Tier Dividend ETFs that Complement Each Other Well to Invest in Right Now

1 hour ago 9

Stefon Walters, The Motley Fool

Sun, June 21, 2026 astatine 9:50 AM CDT 4 min read

Dividend ETFs tin beryllium immoderate of the astir productive parts of anyone's portfolio due to the fact that you person guaranteed income (without the risks that travel with idiosyncratic stocks), arsenic good arsenic the accidental for banal terms appreciation. It's a two-for-one triumph successful galore cases.

For galore people, 1 dividend ETF is capable to get the occupation done, but 2 fashionable dividend ETFs complement each different good and tin beryllium productive pieces successful your portfolio. They're the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) and the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). If you're capable to put successful both, you tin get vulnerability to the champion of some dividend worlds.

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DIVIDENDS written connected a motion beside a coin jar and U.S. bills.

Approaching dividends from antithetic angles

A bully dividend ETF does much than conscionable look for companies with the highest yields and enactment them unneurotic successful a fund. They person acceptable methodologies for choosing companies that marque their circumstantial money unique. SCHD emphasizes "high-quality" companies. To beryllium eligible, a institution indispensable cheque the pursuing boxes:

10 consecutive years of dividend increases
A bully fiscal lasting (good currency travel compared to debt, a bully instrumentality connected equity, etc.)
Be a minimum size and person precocious liquidity

VIG places greater accent connected companies with awesome dividend maturation records. That doesn't mean it doesn't attraction astir quality. A institution indispensable inactive beryllium successful bully fiscal wellness and amusement dividend consistency. However, its attack means its make-up is simply a spot antithetic than SCHD and others. Here is however the 2 ETFs are divided by sector:

Data sources: Vanguard and Charles Schwab. Percentages arsenic of May 31.

Why these ETFs complement each different good

SCHD has consistently offered a higher dividend output than VIG and, ironically, has accrued its dividend by overmuch much implicit the past decennary (143% versus 87%).

What VIG has going for it, though, is that it has been overmuch amended for banal terms appreciation owed to its attraction successful tech stocks. VIG's apical 3 holdings are Broadcom, Apple, and Microsoft, each of which person grown impressively implicit the years.

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