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Written by Nick Ackerman
Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is a dividend growth ETF investor favorite for its passive nature and increasingly growing dividends. The dividend has been growing at a CAGR of ~11% over the last 10 years and nearly 13% over the last five years. That’s certainly delivering that growing passive cash flow that some income investors are looking for.
However, we’ve also been able to write puts (and on occasion covered calls previously) to generate even further cash flow for ourselves. In fact, with SCHD, we’ve been basically able to turn into a monthly payer this year by writing puts on eight different rounds so far. That’s compared to its usual quarterly distribution schedule. That includes the latest puts we’ve been able to write was just before this latest options expiration date.
For a bit of background, I had initially started to…