Top dividend ETFs like the Schwab US Dividend Equity (NYSE:SCHD), iShares Core Dividend Growth (NYSE:DGRO), and Vanguard High Dividend Yield (NYSE:VYM) soared to their record highs this week, continuing an uptrend that has been going on for years.
SCHD, DGRO, and VYM dividend yields have dripped
The challenge, however, is that their stock performance has affected their dividend yields. SCHD yields 3.22%, while DGRO and VYM yield just 1.96% and 3%, respectively. This decline is because the payout remains the same as its stock rises.
These yields have become much lower than what government bonds are paying today. While bond yields pulled back this week, the two-year Treasury yield remains at 4.12%, while the ten-year is at 4.55%. The 30-year remains stubbornly above 5%.
US Treasury yields have jumped amid the rising risks of the US economy as consumer inflation rises. The headline Consumer Price Index (CPI) jumped to 3.8%, while the closely-watched Producer Price Index (PPI) rose to 6%.
