SCHD Is Up 20% and Offers Investors a Compelling Yield. But These 3 Dividend Stocks Could Be Even Better Buys Now.

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Three Dividend Gems Beating the ETF Yield Race

SCHD’s strong run is impressive, but some individual dividend stocks offer better income and durability.

The Schwab U.S. Dividend Equity ETF (SCHD) has surged 20% this year, outpacing the S&P 500, while offering a decent 3% yield. It’s a safe choice for dividend growth, filtering for quality and steady payers. But if you want higher income and can stomach some nuances, stocks like PepsiCo, Enterprise Products Partners, and Realty Income deserve a look. PepsiCo’s diverse consumer base and half-century of dividend raises push its yield to 4.5%, a rare entry point given recent softness. Enterprise Products Partners, a midstream energy player, boasts a 5.8% distribution yield. Its fee-based model cushions you from commodity swings—a critical feature if rand weakness inflates energy import costs. Realty Income, a REIT known for dependable rent inflows and 31 years of dividend growth, also yields 5.8%. For South Africans watching forex shifts, these yields look attractive against local bonds and dividends, especially if the USD/ZAR stays elevated. The risk is a global downturn undermining dividends, or a sudden interest rate spike making bond yields more competitive. Still, these stocks offer a more income-rich alternative to the broad SCHD basket. this is just our opinion and not financial advice