Building a $100,000 Dividend Portfolio: Maximizing Income with SCHD and High-Yield Stocks.

The article discusses building a $100,000 dividend portfolio using the Schwab U.S. Dividend Equity ETF (SCHD) and selecting high-yield stocks. Despite SCHD underperforming in 2025 compared to the S&P 500, it remains a solid investment option for investors seeking attractive dividend yields.

Investors seeking to build a $100,000 dividend portfolio can leverage the Schwab U.S. Dividend Equity ETF (SCHD) as a core position, complemented by high-yield stocks to maximize income. Despite underperforming the S&P 500 in 2025, SCHD remains an attractive investment due to its high dividend yield and strong dividend growth potential [1].

Core Position: Schwab U.S. Dividend Equity ETF (SCHD)

The Schwab U.S. Dividend Equity ETF (SCHD) offers a dividend yield of 3.75% and has a 5-year dividend growth rate of 10.87% [1]. While it has underperformed the S&P 500 in 2025, its performance is driven by its focus on dividend-paying stocks. The ETF's limited global diversification and lack of exposure to certain sectors, such as Real Estate, can be mitigated by adding complementary investments.

High-Yield Stocks

To enhance the portfolio's income potential, investors can consider top high-yield stocks identified for July 2025. These include:

1. LVMH (OTCPK:LVMHF) - Consumer Discretionary, France
2. TotalEnergies (NYSE:TTE) - Energy, France
3. Chevron (NYSE:CVX) - Energy, United States
4. Pfizer (NYSE:PFE) - Health Care, United States
5. PepsiCo (NASDAQ:PEP) - Consumer Staples, United States
6. Ares Capital (NASDAQ:ARCC) - Financials, United States
7. BB Seguridade Participações (OTCPK:BBSEY) - Financials, Brazil
8. Altria (NYSE:MO) - Consumer Staples, United States
9. Verizon (NYSE:VZ) - Communication Services, United States
10. Merck & Co (NYSE:MRK) - Health Care, United States

Portfolio Diversification

To balance income and growth while optimizing risk-reward, the portfolio includes additional companies and funds:

1. Eversource Energy (NYSE:ES) - Utilities, United States
2. Blue Owl Capital Corporation (NYSE:OBDC) - Financials, United States
3. NNN REIT (NNN) - Real Estate, United States
4. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL, TSX:GOOG:CA) - Communication Services, United States
5. Apple (NASDAQ:AAPL, TSX:AAPL:CA) - Information Technology, United States
6. Cohen & Steers Quality Income Realty Fund (RQI) - Real Estate, United States
7. PIMCO Dynamic Income Fund (NYSE:PDI) - Fixed Income, United States

Risk Analysis

The portfolio's risk profile is managed through sector diversification, with no sector representing more than 17% of the overall portfolio. The Financials and Energy sectors have the highest proportions, at 16.04% and 15.05%, respectively. The portfolio's financial health is underscored by the companies' elevated Return on Equity and attractive Free Cash Flow Yield [1].

Conclusion

By investing in the Schwab U.S. Dividend Equity ETF alongside top high-yield stocks and complementary funds, investors can build a $100,000 dividend portfolio that maximizes income potential while maintaining a balanced risk-reward profile. This approach leverages the ETF's strengths while mitigating its limitations through strategic diversification.

References

[1] https://www.ainvest.com/news/maximizing-dividend-income-schd-top-high-yield-stocks-2507/