Dividends: A Matter of Degrees

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So, here we are. Two funds, both promising a slice of the American dividend pie: Vanguard’s VIG and Schwab’s SCHD. They’re not going to solve world hunger, naturally. Just provide a little income. A little. It’s all relative, isn’t it? AUM over seventy-seven billion dollars each. Enough to make you ponder the sheer volume of hopes pinned to these little ticker symbols.

Both chase companies that reliably send out checks to shareholders. A noble pursuit, I suppose. But they go about it differently. VIG is a bit more…refined. SCHD, a little more…practical. It’s like choosing between a tweed jacket and a sensible raincoat. Both keep you from freezing, but one suggests a certain…optimism.

Metric VIG SCHD
Issuer Vanguard Schwab
Expense ratio 0.05% 0.06%
1-yr return (as of Jan. 30, 2026) 10.4% 6.6%
Dividend yield 1.6% 3.5%
Beta 0.85 0.77
AUM $103.1 billion $77.3 billion

The expense ratios are almost identical. A rounding error in the grand scheme of things. The one-year returns? Fleeting. Like most things. But the yield… that’s where it gets interesting. SCHD delivers a substantially larger payout. More immediate gratification. VIG, meanwhile, hopes for growth. A longer game. Which is, of course, no guarantee of anything. So it goes.

Metric VIG SCHD
Max drawdown (5 y) -20.39% -16.86%
Growth of $1,000 over 5 years $1,617 $1,393

SCHD, as of late, seems to favor energy and consumer staples. Solid, dependable things. Like a good pair of shoes. VIG leans toward technology and financial services. More volatile. More potential. Also, more likely to disappoint. Its top holdings – Broadcom, Microsoft, Apple – are the giants of the modern age. But even giants fall, eventually.

Inside SCHD, you’ll find Lockheed Martin, Texas Instruments, Chevron. Industrials and oil majors. The engines of…well, something. It’s a portfolio built for a specific kind of world. VIG is broader. More diversified. It spreads the risk, but also dilutes the reward. A bit like life itself, wouldn’t you say?

For further guidance, there’s a link somewhere. I won’t bother with it. It won’t change anything.

What This Means

Both VIG and SCHD are perfectly acceptable choices for investors seeking income. They’re not going to make you rich, but they might prevent you from being quite so poor. The difference, ultimately, comes down to temperament. Do you want a steady stream of income, or do you prefer to gamble on future growth?

SCHD offers more immediate yield. A little comfort in a chaotic world. VIG hopes for capital appreciation. A long shot, but not entirely unreasonable. The size of both funds—over seventy-seven billion dollars—ensures liquidity. Plenty of people buying and selling. A comforting thought, perhaps. Or a terrifying one. It depends on your perspective.

In the end, it’s just money. And money, as we all know, can’t buy happiness. It can, however, buy a slightly less miserable existence. So it goes. And that, my friends, is a small victory in a universe indifferent to our suffering.

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2026-02-07 20:16