How to Build a “Pay-Me” Portfolio - 12/31

The “problem” with Kings—and what investors can do instead

Many investors want a single, simple ETF that tracks Dividend Kings. Historically, that has been difficult because the “Kings” list is relatively small, and index construction is not always standardized.

However, there is now an ETF specifically built around 50+ year dividend increasers: the Roundhill S&P Dividend Monarchs ETF (SYM: KNGS), which tracks an index of companies that have increased dividends for at least 50 years. The fund launched in November 2023, and its own materials describe it as the only U.S.-listed ETF focused on “Dividend Monarchs” (50+ year increasers).

Still, many investors prefer larger, more liquid “core” dividend ETFs with longer track records. If your goal is practical, diversified exposure to dividend durability, the next best approach is to use high-quality dividend ETFs—particularly those built around dividend growth screens—and/or pair dividend strategies with value exposure.

Below are three ETFs that can help you do that, each with a different emphasis.

ETF: ProShares S&P 500 Dividend Aristocrats ETF (SYM: NOBL)

ETF: Schwab U.S. Large-Cap Value ETF (SYM: SCHV)

Not every “defensive income” solution has to be a dividend-only fund. Sometimes the best portfolio stabilizer is value exposure—especially when the market is rotating away from expensive growth and toward cash-flow-generating, lower-multiple businesses.

SCHV holds a broad portfolio of U.S. large-cap value stocks and does it at an exceptionally low cost.

Cost and yield snapshot (from Schwab’s fund page):

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  Total expense ratio: 0.040%

  
  


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  Distribution yield (TTM): 2.03% (as of 11/30/2025)

  
  


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  SEC yield (30-day): 1.98% (as of 12/26/2025)

  
  

Why it can help “protect” a portfolio
Value funds often hold companies with more established cash flows, which can provide ballast when speculative segments unwind. SCHV also gives you broad diversification (hundreds of holdings) while keeping fees minimal—useful if you want a foundational equity allocation that is less dependent on high-growth narratives.

Key trade-off
SCHV is not a pure dividend strategy. You are getting value exposure first, and dividend yield as a secondary byproduct of that style.

ETF: Schwab U.S. Dividend Equity ETF (SYM: SCHD)

SCHD is often treated as a core holding for dividend-focused investors because it combines dividend orientation with quality screens and a long operating history. It aims to track the Dow Jones U.S. Dividend 100 Index.

Cost and yield snapshot (from Schwab’s fund page):

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  Total expense ratio: 0.060%

  
  


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  SEC yield (30-day): 3.81% (as of 12/26/2025)

  
  


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  Distribution yield (TTM): 3.74% (as of 11/30/2025)

  
  

Why it can help “protect” a portfolio
SCHD’s yield profile is meaningfully higher than many broad-market ETFs, but it is still rooted in large, established companies. That combination—income plus quality-oriented selection—often makes SCHD attractive for investors who want a “middle ground” between pure low-volatility equity exposure and aggressive yield-chasing.

Key trade-off
Dividend-focused ETFs can become concentrated in certain sectors or factors at different points in time. Investors should periodically check exposures and ensure the fund still matches their broader diversification goals.