SCHD, DGRW, and DIVO provide varying yield strategies to cover expenses without selling shares, amid a 4.6% 10-year Treasury yield.
Three dividend-focused ETFs—SCHD, DGRW, and DIVO—target retirement income with yields ranging from 3.2% to 6.4%. The funds address different investor needs, from low-cost equity exposure to covered-call strategies, without requiring share sales to fund expenses.
SCHD tracks the Dow Jones U.S. Dividend 100 Index with a 0.06% expense ratio and a 3.2% yield. DGRW, focusing on dividend growth, has returned 256% over the past decade. DIVO employs tactical covered calls on blue-chip stocks, boosting its yield to 6.4% while maintaining equity ownership.
With the 10-year Treasury yield at 4.6%, these ETFs offer distinct approaches to generating income in a higher-rate environment, catering to retirees seeking sustainable payouts.