"To achieve this, you aim to invest your money in assets that are expected to yield strong returns with minimal downside risk. In the case of one Redditor, they initially believed the way to financial success was to invest heavily in SCHD, a Schwab U.S. Dividend Equity ETF that has recently delivered dividends of around 26 cents as of September 29, 2025."
"While we don't know the age of this Redditor, this decision might not have been a bad one, especially considering that it isn't really a growth ETF. There is no question that SCHD can be a strong fund and a solid dividend ETF, but with a yield that sits in the 3-4% range, you would need around $2 million invested to earn about $80,000 per year in dividends."
The investor exited a large position in SCHD at the end of September after concluding the ETF's 3-4% yield and limited capital appreciation were insufficient for their financial goals. SCHD recently paid dividends around $0.26 as of September 29, 2025. A 3-4% yield would require roughly $2 million invested to generate about $80,000 per year in dividends. The investor shifted into a diversified mix of higher-yield funds, ETFs, and stronger growth options. The investor judged that avoiding an all-in position and aligning holdings with long-term objectives and acceptable volatility were prudent steps.
Read at 24/7 Wall St.
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