2026 is turning dividend investing upside down. While growth stocks are barely moving, some dividend ETFs are already up double digits. SCHD is leading the pack with +13% year-to-date, leaving SPYD and VYM in the dust. But which one should you actually pick for your retirement portfolio? Let’s break it down.
Imagine you have $100,000 and want dividend income. Here’s what lands in your account each year:
SPYD – 4.08% yield → ~$4,080/year (~$340/month)
SCHD – 3.3% yield → ~$3,300/year (~$275/month)
VYM – 2.26% yield → ~$2,260/year (~$188/month)
On pure income alone, SPYD looks like the winner. But hold on—income is only part of the story. Total returns over time tell the real tale.
Over the past 12 months:
VYM: +20.57% → $100k → $120,570
SCHD: +16.12% → $100k → $116,120
SPYD: +10.15% → $100k → $110,150
💡 Surprise! The ETF paying the least in dividends, VYM, actually made you the most money last year thanks to price growth.
Fast forward to 2026 YTD:
SCHD: +13.01%
SPYD: +6.68%
VYM: +4.72%
Dividends alone aren’t enough. The winner changes every year, and this is why chasing the highest yield can be dangerous.
Sector Breakdown: Who Holds What?
SCHD: Energy (21%), Consumer Staples (19%), Healthcare (16%) → steady and defensive
SPYD: Real Estate (25.5%), Consumer Defensive (18%), Utilities (12%) → income-heavy, rate-sensitive
VYM: Financials (21%), Technology (16%) → growth potential, Broadcom at 6.95% is a secret weapon
The Dividend Growth Trap
Here’s the kicker:
SCHD: 5.35% dividend growth per year
VYM: ~3.5% growth
SPYD: negative 5-year growth of -2.89%
That’s right—SPYD’s 4% yield is shrinking over time. Over 30 years, here’s what $100k could grow to:
| ETF | Portfolio Value | Year 30 Dividend Income | Total Dividends Collected |
|---|---|---|---|
| SCHD | $1.93M | $39,175/year | $453,000 |
| VYM | $2.34M | $11,753/year | $177,000 |
| SPYD | $837k | $5,413/year | $142,000 |
SCHD beats SPYD by 7x in dividend income over 30 years. The lesson is clear: highest yield today ≠ highest income tomorrow.
My Recommended Allocation
If I had $100k and was within 10 years of retirement:
50% SCHD → core dividend growth engine
30% SPYD → immediate income booster
20% VYM → diversification + tech/AI exposure
This gives you growth + income + security.
✅ Key Takeaway: Focus on total returns, dividend growth, and sector balance—not just the headline yield.
If you’re ready to invest and capture these dividends, check out moomoo to buy SCHD, SPYD, and VYM. Start building your retirement portfolio today!
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