Be careful when choosing an ETF for your dividends TAKE A LOOK SPYD PAYS 4.49% SCHD PAYS 3.97% Which one would you pick SPDR Portfolio S&P 500 High Dividend ETF (Ticker: SPYD) Current yield 4.49% Many of SPYD’s distributions—especially from REITs and certain high-yield sectors—are non‑qualified, meaning they’re taxed at your ordinary income rates, up to 37% (plus possibly the 3.8% Net Investment Income Tax if your income exceeds thresholds) SCHD (Schwab U.S. Dividend Equity ETF) Current yield 3.97% Allocations result in a strong tilt toward qualified dividends, which are taxed at the preferable long‑term capital gains rates—0%, 15%, or 20%—rather than your ordinary income bracket. So never forget it's what you get to keep after taxes that counts

Posted by Suze at 2025-06-27 11:17:56 UTC