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2 High-Yield Dividend Stocks (and 1 ETF) You Can Buy and Hold for a Decade

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2 High-Yield Dividend Stocks (and 1 ETF) You Can Buy and Hold for a Decade


You can build a portfolio one stock at a time, which is a great way to invest. Or you can save time and effort and use exchange-traded funds (ETFs) to quickly build a portfolio. A well-structured high-yield dividend ETF you should consider is the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). But there are some noticeable missing pieces in the ETF, which is why you might want to buy both it and high-yield stocks Realty Income (NYSE: O) and W.P. Carey (NYSE: WPC). Here’s a look at all three.

The Schwab U.S. Dividend Equity ETF is a passively managed exchange-traded fund (ETF) that uses a unique screening approach to build its portfolio. It starts by screening for companies that have increased their dividend for 10 or more consecutive years, eliminating real estate investment trusts (REITs) from consideration (more on this in a second). Then a composite score is created for all the remaining stocks. The score includes cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate. The 100 highest-rated stocks get into the ETF.

Four hands holding puzzle pieces together.
Image source: Getty Images.

What is basically going on here is that the Schwab U.S. Dividend Equity ETF is trying to create a portfolio that balances company quality, company growth, and dividend yield. You get all this for a fairly tiny expense ratio of 0.06%. While the close to 3.5% dividend yield may not sound huge, it is nearly three times higher than what you’d get from an S&P 500 index (SNPINDEX: ^GSPC) tracking ETF.

The Schwab U.S. Dividend Equity ETF is a fairly compelling core holding for dividend investors. Since the portfolio gets updated annually, you can also rest assured that you’re always going to own the kind of stocks you expect. Yet there are some glaring holes in the ETF’s portfolio.

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SCHD Chart
SCHD Chart

For example, since it focuses on companies with more rapid dividend growth, the utility sector isn’t well represented in the Schwab U.S. Dividend Equity ETF. Utilities, which are a common holding for income investors, make up less than 1% of the portfolio. But, more importantly, REITs, a sector known for offering high yields, are excluded. So you can easily cherry-pick high-yield utility and REIT stocks to complement this ETF. To fill in the most obvious blank spot, two solid REIT options are Realty Income and W.P. Carey, which yield 5% and 6%, respectively.

Both of these companies are large net lease REITs, which means that their tenants are responsible for most of the operating costs of the properties they occupy. Although any single property is high-risk, across a large portfolio, the risks are fairly low. Realty Income is the largest net lease REIT, followed by W.P. Carey. Portfolio size isn’t an issue for either of them.



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Bitcoin hits $73.6K as fundamentals suggest new all-time highs are programmed

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Bitcoin hits $73.6K as fundamentals suggest new all-time highs are programmed


Bitcoin price rallies within $200 of a new all-time high as several fundamentals point to the crypto bull marking picking up pace. 



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President Biden thanks Nigerian President for Binance exec’s release

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President Biden thanks Nigerian President for Binance exec’s release


A former IRS special agent and Binance’s head of financial crime compliance, Tigran Gambaryan had been in Nigerian custody with reports of deteriorating health since February.



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Travelex undertakes major UAE expansion

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Travelex undertakes major UAE expansion


UK based foreign exchange brand Travelex has announced that the company has undertaken a major expansion in the UAE, with the launch of 13 new stores across Abu Dhabi and Dubai airports.

At Zayed International Airport, Travelex is doubling its store footprint from seven to 14 stores, including six new on-the-move kiosk (OTM) locations at arrivals baggage, airside departures and pre-immigration, and one new traditional landside store. The new landside store will offer both a cash management service that will enable the airport’s businesses to process cash, as well as traditional consumer cash services, including access to 62 currencies.

Travelex initially entered Zayed International Airport in late 2023 with seven stores and eight ATMs. The new stores reflect the growing passenger demand and customer requirements of the UAE’s newest airport. As a dominant force in the capital’s aviation sector, Zayed International Airport rapidly affirmed itself as a key hub for air travel, solidifying its position as a vital player in the global travel landscape.

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At Dubai International (DXB), Travelex is in the process of launching six new stores across all three terminals, including new traditional stores and stores upgraded from OTMS. Two ATMS dispensing AED were also installed at Terminal 3 Arrivals earlier this year. DXB has also seen a considerable post-pandemic growth in pax numbers, reinforcing its status as a leading hub for international travel.

The 13 new stores across Abu Dhabi and Dubai means Travelex will be operating 60 locations across the country. The latest IATA figures show that Middle Eastern airlines saw a 9.6% year-on-year increase in demand for June 2024, while capacity increased 9.4% year-on-year.

Batu Dölay, Managing Director, Travelex Middle East and Türkiye said:

“We’re delighted to be expanding our presence at two of the most exciting and dynamic airports in the world. This investment reflects the growing global reach and passenger numbers of our UAE airport partners, and our commitment to providing even greater access to international travel money than ever before.”

About Travelex

Founded in 1976 Travelex has grown to become one of the market leading specialist providers of foreign exchange products, solutions, and services, operating across the entire value chain of the foreign exchange industry in more than 20 countries. We have developed a growing network of ATMs and stores in some of the world’s top international airports, major transport hubs, premium shopping malls and city centres.

Travelex has built a growing online and mobile foreign exchange platform, and we also process and deliver foreign currency orders for major banks, travel agencies, supermarkets and hotels worldwide. In addition, we source and distribute sizeable quantities of foreign currency banknotes for customers on a wholesale basis – including central banks and international financial institutions. We also offer a range of remittance and international money transfer products around the world.

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Solana price hits 3-month high as data hints at SOL rally above $200

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Solana price hits 3-month high as data hints at SOL rally above $200


Solana price hits $180 as Bitcoin storms toward a new all-time high. Data suggests SOL can go higher.



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Bitcoin miners cut costs, embrace AI post-halving: CoinShares

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Bitcoin miners cut costs, embrace AI post-halving: CoinShares


Miners including Cormint and TeraWulf are among the lowest-cost producers of Bitcoin, an important advantage amid tightening margins, CoinShares said.



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Ripple co-founder: Harris will have ‘completely different approach’ to crypto

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Ripple co-founder: Harris will have ‘completely different approach’ to crypto


Having contributed roughly $12 million to PACs supporting Kamala Harris, Chris Larsen said he hoped to see “bipartisan support and weight” for crypto in government starting in 2025.



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