FDVV vs. QYLD: Comparing High Yield To Dividend Fund

Someone asks:

Anyone want to talk about FDVV and QYLD? They’re both high monthly dividend ETF which pays above 7% with low expense ratio?

Answers:

Misha D:

QYLD is not a good dividend company, I used to think it’s good as well, till I did more research on them and why it’s such a big percentage. Learn how to do a better research before being trapped by high yield. Know the tax consequences of QYLD and the long-term effect on overall value.

Mike M:

FDVV is a fantastic ETF that is on my watchlist. I like the dividend yield. Morningstar gives it a 3 star. I like the support and resistance values.

Paul R:

QYLD is not a company. It’s an ETF that simply sells covered call options on the Nasdaq index and returns the option premium to its share holders.

John D:

Not to ruffle feathers, but dividends are irrelevant and growth under-performs value over the very long-term. Still, my favorite ETF has both growth and value stocks: VT. With it, you’re basically accepting the collective wisdom of all of the investors all over the world for 9 basis points a year. What an incredible time to be alive.

Robert A:

I think yield is one of the most important factors in stock selection, and it’s not just about the dividend payment. VYM and VYMI are the best dividend ETFs in my opinion, but I don’t think any do a great job. Personally, I’d rather hand pick the companies based on the yield and the coverage ratio, with good projected ROE and PEG ratio less than 1.

Honuman C:

Usually utilities or REIT ETFs pay high dividend. FREL is Fidelity’s REIT ETF. I forgot how much it pays but VNQ, Vanguard’s REIT ETF pays about 5.2. FREL’s expense ratio is less than that of VNQ. So, check such ETF of Vanguard, Fidelity, iShares, etc and you can find good yield but might not be 7%. However, remember the values of utilities and REIT ETFs can drop quite a bit.

Chris D:

I’ve seen people mention SCHD as a good dividend symbol.

Dani T:

Agree that SCHD is a great for combo of yield and growth. There’s some high yield / low vol funds out there, but they re-balance too much and don’t live up to the low volatility name.

Ali S:

I have SCHD in my individual taxable account and it is doing great, while other ETFs were going down this one was earning me some money.