SCHD: Strong Dividend Grower Made Even Better With Writing Options

The Schwab U.S. Dividend Equity ETF has underperformed SPY recently, but delivers strong, growing dividends with a 3.87% yield and a 13-year growth streak, doing exactly what it is designed to do. SCHD's value orientation (portfolio P/E ~17x currently) and low fees make it attractive versus SPY's stretched valuations, fitting an income-focused strategy. We use the option wheel on SCHD for providing more consistent 'income' nearly every single month, along with our core long position that sits back and collects the dividend passively.