SCHD

Knowing what's going on will help you keep your portfolio successful.Stop chasing others when you're working your plan.Whipsawing or range-bound securities are not a pain point for income investors.In fact, by using a pullback to your advantage, you are boosting your future income.

The Federal Reserve has made an explicit commitment to a set inflation goal, and that will raise your cost of living.We analyze the big picture and provide our readers some food for thought.Inflation will knock on our doors sooner than most think.We also suggest the best hedge for our members.

Wesco International, a Fortune 500 company, recently issued a new high-yielding preferred stock as part of its merger with Anixter International, another Fortune 500 company.The Wesco International Series A (WCC-A) preferred stock is possibly the best preferred stock opportunity today, and currently carries a 9.5% stripped yield.Every five years, the dividend on WCC-A resets to the five-year Treasury Rate plus 10.325%, by far the highest floating rate of any preferred stock.This extraordinarily high reset/floating rate provides enormous protection against any kind of future interest rate environment.The dividends on this high yielder are also qualified for the 15% tax rate.

2020 has been a volatile year for dividend investors, to say the least.Overvaluation of equities coupled with historic dividend cuts have made it increasingly difficult to find a safe harbor for long term income investors.The Schwab U.S. Dividend Equity ETF is that safe harbor, with a safe 3.19% yield.Double digit 3- and 5-year dividend growth CAGRs provide huge upside going forward.On top of dividend yield and growth SCHD has very strong total returns, with 3 and 5-year CAGRs again in double digits.

SCHD has managed to maintain distribution growth in 2020 over 2019, despite a pandemic and wild equity markets this year. The fund's holdings trade for an average of below market multiples. SCHD charges an expense ratio of just 0.06% and is a best-in-class equity dividend investment vehicle.

Schwab's U.S. Dividend Equity ETF is often suggested as an appropriate investment for income seekers who do not have the ability or desire to research individual stocks.Before you invest in any ETF, it is wise to look at its actual holdings.Though this ETF follows an index of 100 stocks, it is very heavily weighted towards just 12.The rest of the holdings have some troubling characteristics.