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David Dierking Recommends Pairing Schwab U.S. Dividend Equity ETF with Schwab International Dividend Equity ETF for Global Exposure

David Dierking suggests that investors who favor the Schwab U.S. Dividend Equity ETF (SCHD) should consider pairing it with the Schwab International Dividend Equity ETF (SCHY) to create a comprehensive global portfolio. While SCHD is a popular choice for income seekers, its primary limitation is its focus exclusively on U.S. stocks. By adding SCHY, which uses a similar selection methodology, investors can capture high-quality dividend stocks from international markets. SCHY offers a sustainable yield of 3.7% and utilizes a selection process that considers cash flow-to-total debt, return on equity, and dividend growth history. This pairing allows for a diversified portfolio that balances U.S. and international exposure. For younger investors, a 75% U.S. and 25%% international split may be appropriate, while those closer to retirement may prefer a higher concentration in U.S. stocks. The combination of these two funds provides a robust way to deliver high dividend income while mitigating the risk of individual stock volatility.

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