The Dividend Barbell: Why
$FDVV Works (and Where
$SCHD Fits In)
The barbell strategy is simple. Skip the fragile middle and own the extremes.
In dividends, that means high-growth, low-yield on one side and high-yield, lower-growth on the other.
This is where FDVV stands out. Itβs basically a rules-based dividend barbell inside one ETF.
FDVV ranks stocks using about 70% dividend yield, 15% payout ratio, and 15% dividend growth. That combination does a lot. The yield tilt pulls in higher income names. The payout ratio helps filter out weaker, unsustainable dividends. The dividend growth factor keeps exposure to quality compounders.
What that creates is a natural barbell.
On the growth and quality end youβll find names like
$NVDA,
$MSFT,
$AAPL,
$V and
$AVGO. Lower yield, but strong earnings power and long-term compounding.
On the high yield side you get names like
$XOM,
$JPM,
$KO, and
$MO. Higher yield and steady cash flow today.
This balance is what makes it interesting. The growth side keeps the portfolio from stalling, while the yield side produces real income. The filters help avoid the fragile middle that can fall apart when conditions change.
Where
$SCHD fits in is a bit different. SCHD leans more into consistency, dividend growth, and balance sheet strength. It has less exposure to high-growth tech and more focus on proven dividend payers.
Thatβs why the combination can work well.
$FDVV brings more of that barbell exposure with growth and yield extremes, while
$SCHD adds stability and discipline. Together you get broader sector exposure, especially more tech through FDVV, along with a smoother balance between income and consistency.
FDVV gives you a prebuilt barbell.
$SCHD helps anchor it.
Do you prefer a prebuilt approach like this, or building it yourself?
Hereβs a video from
@GenExDividend discussing the Barbell Investing Strategy
youtu.be/KcS-RN2-Iq8?si=Kw-eβ¦