For years, dividend investing was sold as the “set-it-and-forget-it” solution for busy investors. Buy a safe ETF, collect steady income, and let time do the rest. But 2025 quietly shattered that illusion. While traditional high-yield favorites delivered stability, they also delivered stagnation—missing out on one of the strongest market rallies in years. At the same time, overlooked strategies quietly compounded wealth, blending income with real growth. The difference wasn’t luck—it was structure, diversification, and intention. In this issue, we break down what actually worked, what lagged, and how a smarter dividend framework can position you for 2026 without adding complexity.

At the end, we reveal the simple portfolio mindset shift that most income investors never make—and why it changes everything.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

Be sure to read through to the end to catch all the valuable insights this newsletter delivers to your inbox today

Five years ago, Sterling Infrastructure $STRL ( ▼ 4.68% ) shares were trading around $21.20 each. Today, it's closed at $319.16—a remarkable 1,356% rise that comes from its strong work in heavy civil, residential, and specialty services, riding the wave of U.S. infrastructure spending and construction demand. The chart shows steady progress from 2022 lows, with real acceleration in 2024-2025, and after-hours at $320.00. That 52-week high of $419.14 stands as the recent top mark.

In simple terms, the compound annual growth rate (CAGR) is 71.78%. That's the average yearly lift—calculated by raising the total growth factor to the 1/5 power and subtracting 1. It means growing your money by over 70% each year, on average.

Dollar-cost averaging (DCA) lays the foundation: Invest $500 every month for five years, totaling $30,000. This buys more shares on dips and fewer on peaks, keeping your average cost balanced. Projecting forward at the same historical pace, with a monthly growth rate of about 4.62% from $319.16, your shares stack up steadily.

After 60 months, your total could reach $158,998. That's a gain of $128,998—a 430% return on your investment. The early buys get the deepest compounding support, while later ones still add to the height.

This is based on the past, which isn't a guarantee ahead—infrastructure can slow with funding or economic changes, but a P/E ratio of 31.26 reflects solid expectations. With that 52-week high of $419.14 in view and a $9.80B market cap, STRL has a strong footing. If DCA's your reliable blueprint, it could turn your $500 habit into a lasting structure by 2031. Build on?

You’ve likely been told that the safest dividend choice is the smartest one. The kind of ETF you can buy, forget, and let quietly work in the background while life stays busy. That reputation belongs to $SCHD ( ▲ 1.86% ) and for years it earned it.

But 2025 exposed a truth most investors only learn the hard way: safety can lag badly when markets change.

SCHD did exactly what it was designed to do—protect capital and pay income. It delivered a 3.81% yield and ended the year with a 3.89% total return. The income showed up. Growth didn’t. Meanwhile, the broader market surged, and technology stocks carried portfolios higher at a pace SCHD was structurally built to avoid.

This wasn’t a failure of management. It was a consequence of design.

SCHD leans heavily into energy, utilities, and mature dividend aristocrats. It deliberately avoids companies that reinvest aggressively in growth. That works in flat or defensive markets. It struggles when innovation, earnings expansion, and multiple expansion drive returns.

For an investor juggling work, family, and limited attention, the danger isn’t volatility—it’s opportunity cost. A year like 2025 quietly widened wealth gaps without sounding alarms.

The lesson isn’t to abandon dividends. It’s to stop assuming that high yield equals high quality.

While attention stayed glued to U.S. markets, one dividend ETF quietly delivered a shock: SCHY, Schwab’s International Dividend Equity ETF, returned 31.05% in 2025.

That wasn’t a fluke. It was the result of three forces aligning simultaneously.

First, currency mattered again. The U.S. dollar weakened meaningfully, and international holdings benefited automatically. You didn’t need to trade forex or time anything—currency did the work in the background.

Second, valuations were already reasonable. International dividend stocks entered 2025 priced at roughly half the earnings multiples of U.S. growth stocks. When investors finally rotated away from crowded trades, money flowed where value had been ignored.

Third, rate cuts changed the math. As central banks reduced interest rates, dividend yields became more attractive relative to bonds. Financials and industrials—core holdings inside SCHY—responded quickly.

The result was something most income investors rarely experience: high yield and strong capital appreciation in the same year.

SCHY still yields close to 4%. It still focuses on dividend consistency. But it also reminds you of a simple truth: diversification isn’t about lowering risk—it’s about expanding opportunity.

For someone short on time, global exposure like this quietly reduces reliance on any single economy or narrative.

At some point, every busy investor pauses when they see an 11% yield paid monthly.

Covered-call ETFs like SPYI and JEPQ promise income that feels almost unfair. Cash flow looks immediate. Volatility appears lower. Monthly deposits feel reassuring.

But here’s what needs to be understood clearly—without noise or hype.

Covered-call funds sell away upside in exchange for option premiums. When markets rise sharply, gains are capped. When distributions exceed real growth, the difference quietly comes from the fund’s own value.

This is where NAV erosion enters the picture.

You may still receive cash every month. But over time, the principal can shrink if upside remains capped while payouts stay elevated. History has shown this repeatedly across similar strategies.

That doesn’t make these ETFs bad. It makes them specific.

They fit investors who:

They are less suitable if your goal is compounding wealth quietly over decades while staying hands-off.

High yield solves one problem. It can create another if misunderstood.

There’s a reason DGRO quietly outperformed most traditional dividend ETFs without ever making headlines.

DGRO doesn’t chase yield. It chases dividend growth.

By requiring only five years of rising dividends instead of decades, it allows exposure to companies still expanding—especially in technology and healthcare. These businesses grow earnings first, then grow payouts.

The trade-off is obvious: the yield is lower today.

The payoff is less obvious—but far more powerful.

In 2025, DGRO delivered 16.54% total return, dramatically outperforming high-yield peers while maintaining dividend discipline. That’s the compounding sweet spot: income that grows alongside the business.

For investors who don’t want to babysit portfolios but still want progress, this approach aligns well with reality. You’re not guessing market rotations. You’re owning companies that adapt.

Funds like VIG reinforce this idea with even stricter dividend growth requirements and longer track records. They don’t excite. They endure.

And endurance is underrated when attention is limited.

Markets don’t stay extreme forever. Valuations normalize. Leadership rotates. In 2026, dividend strategies may regain relevance—not as a fallback, but as a recalibration.

The real edge isn’t picking one perfect ETF. It’s combining roles:

A blended approach spreads risk across time horizons instead of predictions.

The most important shift is mental, not tactical: Stop asking which ETF is “best.” Start asking what job each holding performs for you.

When investing fits your bandwidth, consistency follows. When consistency follows, results compound quietly.

That’s how dividends actually work—when they’re chosen with intention, not habit.

2025 didn’t reward comfort. It rewarded flexibility.

2026 doesn’t require complexity—just clarity.

And clarity is the most valuable asset a busy investor can own.

Ready to Revolutionize Your Wealth?

Here's what's waiting for you:

With the world becoming increasingly digital, this question will be on the minds of millions of people looking for new income streams in 2025.

The answer is—Absolutely!

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Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.