The Dow Jones Dividend 100

This episode of Planning Made Simple discusses the Dow Jones Dividend 100 Index, which selects the top 100 U.S. dividend-paying stocks based on a defined methodology, including factors like yield, dividend history, free cash flow, and return on equity. Paul and Kyle highlight how this structured, rules-based approach to stock selection contrasts with broader indices like the S&P 500, which are based primarily on market capitalization. They also draw parallels to their own portfolio-building strategies, emphasizing the importance of planning, filtering, and thoughtful analysis in investing. The conversation touches on ETFs like Schwab’s Dividend ETF, noting it as a decent option for do-it-yourself investors, though not a substitute for direct stock ownership. Ultimately, the message underscores the value of having a clear investment plan and methodology.