Dividend Overlap Optimizer

Are you double-counting your dividends? Discover hidden overlaps in dividend-paying stocks across your ETF portfolio.

Why Dividend Overlap Matters

Many investors hold multiple dividend ETFs thinking they're diversified. But SCHD, VYM, and DVY all own the same dividend aristocrats. You're not getting more diversification — just paying more fees for the same companies.

Even worse: if one of those dividend stocks cuts its payout (like AT&T did in 2022), your entire portfolio feels the pain because you own it 3x through different ETFs.

What Are Dividend Aristocrats?

Dividend Aristocrats are S&P 500 companies that have increased their dividends for 25+ consecutive years. They're the gold standard of dividend reliability.

✅ Famous Aristocrats

  • • Johnson & Johnson (JNJ) - 61 years
  • • Procter & Gamble (PG) - 67 years
  • • Coca-Cola (KO) - 61 years
  • • PepsiCo (PEP) - 51 years
  • • McDonald's (MCD) - 47 years

❌ Cut or Frozen Dividends

  • • AT&T (T) - Cut 47% in 2022
  • • General Electric (GE) - Cut 2017
  • • Ford (F) - Suspended 2020
  • • Disney (DIS) - Suspended 2020
  • • Boeing (BA) - Suspended 2020

Common Dividend Portfolio Traps

🚨 Trap #1: The "3 Dividend ETF" Illusion

Portfolio: 40% SCHD + 30% VYM + 30% DVY

Problem: All three ETFs heavily overlap in dividend aristocrats. You're holding the same 30 companies 3 times, paying 3 expense ratios, with zero extra diversification.

⚠️ Trap #2: Chasing Yield Without Quality

ETF: YYY - 8% yield vs SCHD - 3.5% yield

Problem: High yield often means high risk. Companies paying 8% yields are often struggling businesses that will cut dividends (and tank in price). SCHD's 3.5% yield + dividend growth beats 8% with cuts.

💡 Trap #3: Monthly vs Quarterly Confusion

ETF: JEPI - monthly dividends vs SCHD - quarterly dividends

Reality: Monthly dividends feel better, but the math is identical. $12/month = $36/quarter. Don't overpay for the psychological benefit. Focus on total yield + dividend growth rate.

Pro Dividend Strategies

🎯 Strategy #1: Quality Over Yield

Better to earn 3.5% from dividend aristocrats (SCHD) that grow 7%/year than 6% from risky stocks that cut dividends. Compounding dividend growth beats high yield every time.

📊 Strategy #2: Combine Growth + Dividends

70% VTI/VOO (total market growth) + 30% SCHD (dividend quality) = Best of both worlds. You get capital appreciation + reliable income without sacrificing returns.

🌍 Strategy #3: Geographic Diversification

Don't ignore international dividends. VXUS has lower correlation to US markets and often higher yields. Mix US dividend ETFs with international exposure to smooth out economic cycles.

How to Use This Tool

  1. 1Select your dividend ETFs - Add all the dividend-focused ETFs you own (or are considering).
  2. 2Set portfolio weights - Adjust the sliders to match your actual allocation percentages.
  3. 3Analyze overlaps - See which dividend-paying stocks appear in multiple ETFs and how much duplication exists.
  4. 4Review yield breakdown - Check your combined portfolio yield and identify top dividend contributors.
  5. 5Optimize - Remove redundant ETFs or replace high-overlap funds with complementary options.

Beyond Dividend Overlap

Want to compare ETFs head-to-head with detailed metrics? Check out our ETF Comparison Tool to analyze holdings overlap, expense ratios, performance, and more across 36+ ETFs.

Or use our Correlation Finder to build a truly diversified portfolio that won't all crash together in a market downturn.