"Creating a stream of passive income is key to a comfortable retirement. And to do this, many people turn to dividend stocks. Dividends are regular payments companies make from their profits. So you can think of it as a plus in addition to what you get from the stock's price growth. But it may be difficult to pick dividend stocks. That's why many investors prefer dividend ETFs. An ETF is a professionally managed fund that could invest in hundreds or even thousands of stocks."
"And one of the most popular dividend ETFs out there is the Schwab US Dividend Equity ETF (SCHD). This ETF is known for its strong performance, ultra low fees and diversification. But there are other funds out there that are outshining SCHD in many ways. So let's take a closer look at these other top contenders. Amplify CWP Enhanced Dividend Income ETF (DIVO) The Amplify CWP Enhanced Dividend Income ETF (DIVO) is a bit different from your typical dividend ETF."
Creating a stream of passive income supports a comfortable retirement. Dividend stocks provide regular profit-based payments in addition to price appreciation. Dividend ETFs offer diversified, professionally managed access to many dividend-paying companies. The Schwab US Dividend Equity ETF (SCHD) is known for strong performance, low fees, and diversification. The Amplify CWP Enhanced Dividend Income ETF (DIVO) uses active management, combines dividend-paying large-cap companies with covered-call writing, and targets income and growth. DIVO's five-year return is about 44.42% versus SCHD's 32.63%. DIVO focuses on financials and information technology, holds names like Caterpillar, Apple, and American Express, manages about $5.2 billion, and charges a 0.56% expense ratio versus SCHD's 0.06%.
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