Warren Buffett Would Never Touch This 9%-Yield ETF – Why Some Retirees Still Lov

SDIV's 9% yield has funded 14 straight years of monthly distributions, but its share price gained roughly 1% annually while the broader market tripled.

SCHD returned 231% in price over the past decade, with dividends growing from $0.12 to $0.25-plus quarterly, all at a 0.06% expense ratio.

A $400,000 SDIV position generates roughly $3,000 monthly, and it works best as a 5 to 10% income sleeve rather than a core portfolio holding.

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Warren Buffett buys businesses that compound dividends rather than businesses that pay the biggest dividend they can squeeze out today. That single preference explains why Global X SuperDividend ETF (NYSEARCA:SDIV) would never sit in his portfolio. SDIV holds roughly 100 of the highest-yielding stocks on the planet, equal-weighted, with no quality screen worth mentioning. The roughly 9.36% trailing yield is the entire pitch, and for a specific kind of retiree, that pitch still works.

SDIV exists to solve one problem. Monthly cash flow. The fund has paid every month since 2011 out of a global pool of utilities, mortgage REITs, telecoms, bus

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/warren-buffett-never-touch-9-183023423.html)