That wave helped transform Zoom Communications Inc. (NASDAQ: ZM) from a business software company into a household name.

In its quarter 1 FY2027 earnings, Zoom reported revenue of $1.17 billion and diluted EPS of $1.41. But the most shocking thing is that today, the company is betting the next workplace revolution will be driven by the opposite problem.

The Modern Workplace Has Become Addicted To Coordination

The truth is, most executives don’t wake up wishing they had more meetings

They want projects moving faster, decisions getting made sooner, and fewer hours disappearing into coordination work that somehow expands every year despite technology supposedly making everyone more productive.

Much of corporate life remains built around one stubborn reality: information moves imperfectly between people, forcing companies to build layers of meetings, approvals, and management structures whose primary purpose is keeping everyone aligned.

The irony is hard to miss. Zoom became one of the defining winners of an era when companies needed more communication and coordination just to keep work moving. Now it’s positioning around a future where businesses pay to eliminate those same frictions, because every hour lost to bureaucracy is an hour not spent creating value. And judging by the numbers in this quarter’s earnings, customers are already beginning to buy into that vision.

Beyond Video Meetings

Zoom Phone surpassed 8 million paid seats while enterprise revenue grew 6% year-over-year.

More importantly, Zoom ended the quarter with 4,192 customers generating over $100,000 in trailing twelve-month revenue, an 8.2% increase from a year ago. Those are the customers with the most bureaucracy, the most coordination challenges, and the most money to spend solving them.

Operating cash flow reached $552 million, free cash flow came in at $504 million, gross margins remained near 77%, and the board authorized an additional $1.2 billion share repurchase program. These numbers indicate a company expanding beyond video meetings.

That’s why management spent so much time discussing AI Companion, Agentic AI, Zoom Workplace, Contact Center, and workflow automation. The common thread running through all of them is simple: reducing the administrative burden surrounding work itself.

The Meeting Is Becoming The Cheapest Part Of Work

For years, technology companies have competed to make communication easier.

Now they are competing to make communication less necessary, a strategy Zoom is integrating into its system at breakneck speed.

In fact, as I write to you, the company is already building tools that summarize conversations, identify action items, retrieve information, automate follow-ups, and move work forward after people stop talking.

That matters because meetings have become a commodity. Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), and Cisco Systems Inc. (NASDAQ: CSCO) can all host meetings.

Now, you’ll find the real value in what happens afterward. Once AI can capture decisions, organize knowledge, assign tasks, and automate follow-through, the meeting starts looking less like the product and more like raw material feeding a larger productivity engine. 

That’s a dangerous shift because the companies creating the most value will no longer be the ones helping employees talk to each other, but the ones helping them avoid unnecessary conversations altogether, because now they’ll be able to increase the speed of execution.

This Looks Like A Growing Confidence In Zoom 

Zoom Communications spent most of the past year building a base between $75 and $90 before finally breaking higher in April. That breakout carried shares above both the 50-day and 200-day moving averages and culminated in a sharp run toward the $110 area, where sellers stepped in almost immediately.

The post-earnings pullback looks more like profit-taking than technical damage. Shares remain above both major moving averages, with the 50-day average near $89 now acting as the first meaningful support level. Volume expanded during the breakout and remained elevated around earnings, suggesting institutions are actively involved.

The key level to watch is the recent breakout zone between $90 and $92. As long as buyers defend that area, the larger uptrend remains intact. A successful retest would strengthen the case that the market is beginning to price Zoom as more than a video conferencing company.

Sit Tight For Another Workplace Revolution

During the pandemic, companies needed more communication because people could no longer sit in the same room. Today, they are searching for ways to reduce bureaucracy because too many people spend too much time discussing work instead of doing it.

AI Companion, Agentic AI, workflow automation, Contact Center, and Zoom’s investment in Anthropic all point in the same direction. The company is less interested in defending a video conferencing product and more interested in owning a larger productivity layer.

So, while investors still see Zoom as a meeting company or a pandemic relic. I see a future where companies spend billions to reduce the friction in work. And if that shift gains momentum, Zoom may benefit from the next workplace transformation just as it benefited from the last one.

Moving forward, the company is forecasting fourth-quarter adjusted EPS of $1.16 to $1.18 per share on revenue of $16.7 billion to $16.9 billion. Analysts were looking for fourth-quarter adjusted EPS of $1.07 on revenue of $15.82 billion.

The strong guidance suggests enterprise customers are still spending aggressively on networking, cloud, and AI-related infrastructure despite ongoing macroeconomic uncertainty. That’s an important signal for investors worried that technology spending could slow in the second half of the year.

Cisco said it has received $5.3 billion in artificial intelligence infrastructure and hyperscaler orders so far this year and raised its expected fiscal-year orders to $9 billion, up from $5 billion. Better, as noted by CEO Chuck Robbins:

“The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest. I’m confident Cisco will be one of those winners. This means making hard decisions — about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

The AI Boom Shows No Signs of Cooling

Fueling more upside in the stock, the AI boom shows no clear signs of cooling off. In fact, the artificial intelligence boom is still accelerating.

With the global AI market already surpassing $230 billion in 2024, analysts now see a clear path to multi-trillion-dollar expansion—and the next five years may deliver the strongest gains yet.

Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. And judging by the surge in corporate investment, the market is moving toward the high end of those projections.

Warnings of an “AI bubble” are increasingly being dismissed by top analysts.

Goldman Sachs says, “it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver,” as noted by Quartz.com. 

That matters because investor sentiment toward AI stocks has recently become more cautious after massive gains over the last two years. Strong enterprise demand and rising infrastructure spending continue to support the longer-term growth narrative.

Long term, the investment bank says that AI adoption could add $20 trillion to the U.S. economy. AI, according to Goldman Sachs, is already delivering those gains in productivity when deployed right.”

JPMorgan added, “AI is presenting opportunities not fully appreciated or understood yet,” as noted by CNBC. “AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in the way that companies operate.”

“So, if you say to yourself, is AI in a bubble, I feel you have to get very granular on how you’re going to answer that, because in the U.S., we’re starting to gain traction, but we’re nowhere near the ability to have the stuff all to the bottom line.” 

For investors, that means the upside potential is still there, which is why stocks like Cisco can continue to explode higher.

Cisco Emerges as a Clear AI Infrastructure Beneficiary

Cisco’s latest earnings report reinforces a growing trend across the tech sector: artificial intelligence is no longer a future opportunity — it’s a present-day revenue driver. 

With surging AI infrastructure demand, strong guidance, and billions in new orders already secured, Cisco appears well-positioned to capitalize on one of the biggest technology transformations in decades.

And with Wall Street giants like Goldman Sachs and JPMorgan arguing that the AI revolution is still in its early innings, investors may continue rewarding companies that can successfully scale alongside the boom. For now, Cisco looks like one of the clearest beneficiaries of that momentum.

With geopolitical tensions surrounding Iran creating uncertainty, no one knows how long volatility will persist. That’s forcing investors to shift toward defensive strategies that emphasize stability, income, and diversification over aggressive growth.

Instead of sitting in cash or trying to time the market, investors may find better opportunities in safe ETFs that provide steady exposure to high-quality assets—some of which follow strategies favored by Warren Buffett.

Why Safe ETFs Make Sense in Volatile Markets

During uncertain periods, the priority shifts from maximizing returns to preserving capital and generating consistent income. Safe ETFs offer:

• Broad diversification across sectors
• Exposure to high-quality companies
• Lower costs compared to active funds
• Reliable dividend income in some cases

These characteristics make them ideal tools for navigating unpredictable markets while staying invested.

Vanguard S&P 500 ETF (VOO): Broad Market Stability

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.” With that, Buffett has named the Vanguard S&P 500 ETF (NYSEARCA: VOO) as one way to invest.

What makes the VOO ETF attractive is that it measures the performance of the S&P 500 and includes both value and growth stocks across multiple sectors. This broad exposure helps reduce risk tied to any single industry. Some of its top holdings include: NVIDIA Corp. (NASDAQ: NVDA), Microsoft Corp. (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), and Berkshire Hathaway (NYSE: BRK.B), to name a few.

It offers a low-cost way to safely diversify by tracking the biggest companies, making it an ideal “set it and forget it” trade. In addition, with an expense ratio of 0.03%, the ETF also pays a quarterly yield. 

VanEck Morningstar Wide Moat ETF (MOAT): Quality Over Everything

If you follow Warren Buffett, you know he prefers companies with a wide economic moat—businesses that can defend their profits against competitors over long periods.

In fact, if you want to invest in companies attractive to the billionaire, make sure they are:

• Simple companies that are easy to understand
• Companies with predictable and proven earnings
• Companies that can be bought at a reasonable price
• Companies with an “economic moat,” or a unique competitive advantage

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (BATS: MOAT) tracks companies with sustainable competitive advantages. That includes names such as Estee Lauder (NYSE: EL), Teradyne (NASDAQ: TER), Boeing (NYSE: BA), Alphabet, Nike (NYSE: NKE), and NXP Semiconductors (NASDAQ: NXPI). These are firms that tend to perform relatively well even during uncertain economic periods.

The MOAT ETF also yields 1.29% and pays a yearly dividend. On December 24, it paid out $1.2675. On December 22, 2023, it paid $0.7285. While the yield is modest, the focus here is on long-term quality and resilience.

Schwab U.S. Dividend Equity ETF (SCHD): Reliable Income Stream

There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD), which tracks the performance of 100 high-yielding dividend stocks selected based on yield and five-year dividend growth rates.

With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.37%, about three times the S&P 500’s dividend yield, making it particularly attractive to income-focused investors. Its holdings include Amgen (NYSE: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).

Safe ETFs Can Help You Stay Invested

At the end of the day, investing during periods of uncertainty isn’t about trying to perfectly time the market—it’s about positioning yourself to weather the storm while still staying invested. Safe ETFs like VOO, MOAT, and SCHD offer a balanced mix of broad market exposure, high-quality companies, and reliable income, which can help smooth out the ride when volatility spikes.

While no investment is completely risk-free, sticking with diversified, low-cost ETFs and focusing on long-term fundamentals can make a meaningful difference. Instead of reacting emotionally to headlines, investors may be better served by staying disciplined, maintaining perspective, and letting proven strategies work over time.

Dividend Aristocrats are widely considered some of the highest-quality companies in the market. To earn this title, a company must have increased its dividend payouts for at least 25 consecutive years. Dividend Kings take that standard even further. These elite companies have raised their dividends for 50 years or more, proving their resilience across multiple economic cycles.

What makes these companies particularly compelling is their ability to perform in virtually any environment. Whether facing inflation, recessions, rising interest rates, market crashes, or economic booms, they have consistently rewarded shareholders with growing income. That kind of durability is rare—and valuable. It also reflects strong management teams, disciplined capital allocation, and business models built to withstand long-term pressure.

Simply put, if a company can survive decades of economic uncertainty and still pay—and raise—dividends, it deserves attention.

There’s just one drawback: there isn’t currently a dedicated ETF focused solely on Dividend Kings. That means investors looking for exposure must either purchase individual stocks or turn to ETFs that emphasize similar high-quality, dividend-growing companies.

Here are three strong ETF options to consider.

A Pure Play on Dividend Aristocrats

The ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL) offers direct exposure to companies that have increased dividends for at least 25 consecutive years.

With an expense ratio of 0.35% and a yield of approximately 2.05%, NOBL tracks the S&P 500 Dividend Aristocrats Index. The fund focuses on stable, high-quality businesses with long track records of dividend growth—many of which have been increasing payouts for 40 years or more.

Its holdings include well-known companies such as Caterpillar (NYSE: CAT), Pentair (NYSE: PNR), AbbVie (NYSE: ABBV), Aflac (NYSE: AFL), General Dynamics (NYSE: GD), Clorox (NYSE: CLX), Walmart (NASDAQ: WMT), and Hormel Foods (NYSE: HRL).

These companies have demonstrated consistent performance and income reliability, making NOBL a strong choice for conservative, income-focused investors.

Low-Cost Exposure to High-Quality Value Stocks

Another solid option is the Schwab U.S. Large Cap Value ETF (NYSEARCA: SCHV), which focuses on large-cap value stocks.

SCHV stands out for its ultra-low expense ratio of just 0.04%, making it one of the most cost-effective ETFs available. It also offers a yield of about 1.85% and provides exposure to a diversified basket of financially strong companies.

Top holdings include Berkshire Hathaway (NYSE: BRK.B), Johnson & Johnson (NYSE: JNJ), Exxon Mobil (NYSE: XOM), JPMorgan Chase (NYSE: JPM), Home Depot (NYSE: HD), AbbVie, Pfizer (NYSE: PFE), and Merck & Co. (NYSE: MRK).

High Yield Meets Dividend Growth Discipline

The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) is another popular choice among income investors. With an expense ratio of 0.06% and a yield of roughly 3.5%, SCHD tracks the Dow Jones U.S. Dividend 100 Index. The ETF focuses on companies with strong fundamentals, sustainable dividends, and a history of consistent payouts.

Its holdings include industry leaders such as Amgen (NASDAQ: AMGN), AbbVie, Home Depot, Cisco Systems (NASDAQ; CSCO), Broadcom (NASDAQ: AVGO), Chevron Corporation (NYSE: CVX), United Parcel Service (NYSE: UPS), and The Coca-Cola Company (NYSE: KO).

SCHD is particularly appealing for investors seeking a blend of income, quality, and long-term growth potential.

Dividend ETFs Offer Stability in Any Market

In uncertain markets, stability and income become even more important. Dividend-focused ETFs—especially those emphasizing companies with long histories of growing payouts—can help anchor your portfolio.

These funds don’t just provide income—they offer exposure to businesses that have proven their ability to navigate inflation, recessions, and shifting interest rate environments. That kind of consistency can reduce volatility while still allowing for long-term capital appreciation.

While no ETF is exclusively dedicated to Dividend Kings, funds like NOBL, SCHV, and SCHD give investors access to many of the same high-quality characteristics: strong balance sheets, disciplined management, and shareholder-friendly capital allocation.

For investors looking to balance risk and reward, these ETFs can serve as a core portfolio holding—delivering both reliability and growth potential over time.

In today’s market environment, where interest rates and inflation expectations continue to shift, investors are increasingly looking for flexible income strategies that don’t rely on a single asset class. Dividend ETFs stand out because they combine equity upside with regular income, offering a middle ground between growth investing and traditional fixed income. This flexibility makes them especially attractive for long-term investors navigating uncertain conditions.

For investors looking to simplify their portfolios while still generating reliable cash flow, dividend-focused ETFs can serve as strong core holdings.

Three funds in particular stand out for long-term, buy-and-hold investors: The Vanguard Real Estate ETF (NYSEARCA: VNQ), the ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL), and the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD). Each offers a different approach to income and stability, but all share a focus on quality and long-term compounding.

The Vanguard Real Estate ETF (VNQ)

The Vanguard Real Estate ETF (VNQ) provides broad exposure to the U.S. real estate market through a diversified portfolio of real estate investment trusts and related companies. 

With an expense ratio of just 0.13% and a dividend yield of roughly 3.7%, it remains one of the most cost-effective ways to gain exposure to the property sector. 

The fund holds more than 150 positions, spanning healthcare REITs, industrial warehouses, data centers, and retail properties. Major holdings include Welltower (NYSE: WELL), Prologis (NYSE: PLD), American Tower Corporation (NYSE: AMT), Equinix (NASDAQ: EQIX), Digital Realty Trust (NYSE: DLR), and Simon Property Group (NYSE: SPG).

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks companies in the S&P 500 that have increased their dividends for at least 25 consecutive years, a group often viewed as some of the most financially stable businesses in the market. 

With an expense ratio of around 0.35% and a dividend yield near 2.5%, NOBL is less about high income and more about durability and steady growth. It holds roughly 69 companies, including AbbVie (NYSE: ABBV), Lowe’s (NYSE: LOW), Archer Daniels Midland (NYSE: ADM), and Pentair (NYSE: PNR). These businesses have demonstrated an ability to withstand economic downturns while continuing to reward shareholders, making the ETF a popular choice for investors who prioritize long-term reliability over short-term yield.

The Schwab U.S. Dividend Equity ETF (SCHD) 

The Schwab U.S. Dividend Equity ETF (SCHD) offers a balance between income, quality, and cost efficiency. With an extremely low expense ratio of 0.06% and a dividend yield close to 4%, SCHD has become one of the most widely held dividend ETFs among long-term investors. It tracks a portfolio of more than 100 U.S. companies with strong balance sheets, consistent cash flow, and a history of paying dividends.

Holdings include well-known names such as Amgen (NASDAQ: AMGN), AbbVie, Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). What makes SCHD particularly appealing is its blend of defensive and cyclical sectors, giving investors exposure to both stability and growth potential while maintaining a strong income stream.

Why These ETFs Work for Long-Term Investors

Funds like VNQ, NOBL, and SCHD demonstrate that a disciplined, income-focused approach can provide both stability and growth over time. By combining real estate exposure, dividend consistency, and high-quality U.S. equities, these ETFs offer a well-rounded foundation for investors who want to generate passive income while benefiting from compounding returns. For those willing to stay patient and reinvest dividends, these types of core holdings can play a powerful role in achieving financial independence 

Importantly, these ETFs also remove the need to constantly monitor individual holdings or time the market. That simplicity allows investors to stay focused on long-term goals rather than short-term volatility, which is often the biggest determinant of successful outcomes.

There are many safe ETFs to choose from. So many, in fact, that it can create analysis paralysis. Don’t let that happen to you. Here are three of the top ETFs to own if stable growth with a reliable yield is your first priority.

Safe ETFs to Buy: The Vanguard S&P 500 ETF

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.”

With that, Buffett has named the Vanguard S&P 500 ETF (NYSEARCA: VOO) as one way to invest. What makes the VOO ETF the most attractive is that it measures the performance of the S&P 500 and includes both value stocks and growth stocks from multiple market sectors. In fact, its holdings include some of the most widely held stocks, including Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Berkshire Hathaway (NYSE: BRK.B).

It offers a low-cost way to safely diversify by tracking the largest companies, making it an ideal set-it-and-forget-it trade. In addition, with an expense ratio of 0.03%, the ETF also pays a quarterly yield. On December 24, it paid a dividend of just over $1.771. Before that, it paid a dividend of $1.74 on October 1. Before that, it paid a dividend of just over $1.7447 on July 2.

Safe ETFs to Buy: The VanEck Morningstar Wide Moat ETF

If you follow Warren Buffett, you know he likes companies with a wide economic moat. In fact, if you want to invest in companies attractive to the billionaire, make sure they are:

• Simple companies that are easy to understand
• Companies with predictable and proven earnings
• Companies that can be bought at a reasonable price
• Companies with “economic moat,” or a unique advantage over their competition.

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (BATS: MOAT) tracks the performance of companies with sustainable competitive advantages. That includes Estee Lauder (NYSE: EL), Teradyne (NASDAQ: TER), Boeing (NYSE: BA), Alphabet, Nike (NYSE: NKE), and NXP Semiconductors (NASDAQ: NXPI). 

The MOAT ETF also yields 1.29% and pays a yearly dividend. On December 24, it paid out a dividend of $1.2675. On December 22, 2023, it paid out a dividend of $0.7285.

Safe ETFs to Buy: The Schwab US Dividend Equity ETF

There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD), which tracks the performance of 100 high-yielding dividend stocks chosen by yield and five-year dividend growth rates.

With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.37%, which is about three times the S&P 500’s dividend yield, and has holdings in names such as: Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ; CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  Its last dividend of just over 27 cents was paid on December 15. Before that, it paid just over 26 cents on September 29. 

Control What You Can Control

While geopolitical tensions and market volatility may keep investors on edge, the key to long-term success is staying invested in high-quality assets. ETFs like the Vanguard S&P 500 ETF, VanEck Morningstar Wide Moat ETF, and Schwab US Dividend Equity ETF provide diversification, strong underlying companies, and reliable income streams—all qualities that can help weather uncertain markets. 

Instead of trying to time every headline, investors can focus on disciplined, long-term strategies using funds like these to build resilience and stability in their portfolios.

But let’s take a step back and ask why this is important.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings.  You also don’t want to live on the scant 0.6% from your average savings account.

Collect 3.38% Every Quarter

One way to do that is by investing in a safe, high-yielding exchange traded fund (ETF), like the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD). With an ultra-low expense ratio of 0.06%, the SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. The fund currently holds 101 dividend-paying stocks, including blue-chip names such as Bristol Myers Squibb (NYSE: BMY), Merck & Co. (NYSE: MRK), ConocoPhillips (NYSE: COP), Lockheed Martin Corp. (NYSE: LMT), Chevron (NYSE: CVX), Verizon Communications Inc. (NYSE: VZ), and Cisco Systems (NASDAQ: CSCO).

SCHD pays a quarterly dividend, making it a reliable source of regular income. It last paid out just over 27 cents per share on December 15. Before that, it distributed just over 26 cents per share on September 29 and just over 26 cents per share again on June 30. That kind of consistency is exactly what retirees need when planning monthly expenses.

The ETF is also up about 15% since the start of the year after a lackluster 2025. This is a reminder that dividend-paying ETFs can offer growth potential alongside income.

High Standards, Built-In Stability

What really sets SCHD apart from other dividend-paying ETFs is its strict eligibility criteria. To even be considered for inclusion, a company must have at least 10 consecutive years of dividend payouts, a market cap of no less than $500 million, and an average three-month daily trading volume of at least $2 million. In short, the ETF doesn’t accept any slouches. SCHD also favors companies carrying little to no debt, adding an extra layer of stability that matters when volatility picks up.

This disciplined, rules-based approach is one reason SCHD has earned a strong reputation among investors who prioritize quality over yield-chasing. Many dividend-paying ETFs simply sweep up the highest yields available without regard for financial health — SCHD takes the opposite approach, screening for durability first.

The SCHD ETF Will Rebalance in March

In just weeks, the SCHD ETF will also undergo its annual rebalancing. This time around, it’s again expected to rotate out of stocks with compressed yields and into stocks with higher yields, which should include stocks in the financial and healthcare sectors.

For investors keeping an eye on dividend-paying ETFs heading into the spring, this rebalancing could create a timely entry point. It offers a strong alternative. Owning a high-quality dividend ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security.

A Smarter Alternative to Your Savings Account

The SCHD ETF has proven to be a reliable choice for those seeking income, stability, and long-term growth. And it provides all of that in a single, low-cost fund. For investors who want to replace the unreliable interest of a savings account with a consistent quarterly paycheck, without taking on excessive risk, SCHD offers a compelling alternative.

Owning a high-quality dividend-paying ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security — and the kind of retirement you’ve actually been working toward.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings. Retirement should be about freedom and confidence, not anxiety.

One of the most effective ways to build that confidence is by owning income-focused ETFs that deliver consistent cash flow, diversification, and professional management. Instead of relying solely on selling shares to fund your lifestyle, these funds aim to turn your portfolio into a dependable income engine.

Below are five retirement income ETFs that can help provide a reliable “paycheck” in retirement, along with why each can play an important role in a long-term income strategy.

Retirement Income ETFs: Schwab US Dividend Equity ETF (SCHD)

Retirees looking for a low-cost dividend ETF that invests in quality companies can look into the Schwab US Dividend Equity ETF (NYSEARCA: SCHD). This ETF screens for high-yielding companies that have a track record of paying dividends. 

The ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. It has 100 holdings, including names such as Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  

The fund has an expense ratio of 0.06% and pays a quarterly dividend that yields 3.38%.

Retirement Income ETFs: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) seeks steady income by investing in high-quality companies that pay high dividends and experience low volatility, helping steer investors clear of value traps and mitigate risk.

The fund offers a yield of about 4%. This means a $400,000 investment could pay $1,333 a month with that yield. Its holdings are mainly in real estate and in defensive sectors such as consumer staples and utilities.

Retirement Income ETFs: JPMorgan Equity Premium Income ETF (JEPI)

The JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) generates income by combining some of the top blue-chip stocks, such as Amazon (NASDAQ: AMZN), Mastercard (NYSE: MA), and Nvidia (NASDAQ: NVDA), using options strategies.

All of which help produce hefty monthly income for investors. In fact, last checked, the JEPI ETF yields about 7.24%, which isn’t too shabby at all. With an expense ratio of 0.35%, the ETF holds 122 stocks, including Visa (NYSE: V), Mastercard, Trane Technologies (NYSE: TT), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), The Southern Company (NYSE: SO), and Nvidia.

Retirement Income ETFs: JPMorgan Nasdaq Equity Premium Equity Income ETF (JEPQ)

The JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ) generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation. 

The ETF has an expense ratio of 0.35% at the time of this writing, and pays a monthly dividend with a yield of 9.74%,

Retirement Income ETFs: iShares Core High Dividend ETF (HDV)

The iShares Core High Dividend ETF (NYSEARCA: HDV) tracks the investment results of an index composed of relatively high-dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil (NYSE: XOM), Chevron, and Johnson & Johnson (NYSE: JNJ).

With a yield of 3.41% and an expense ratio of 0.08%,

It’s About Peace of Mind

Retirement isn’t about chasing the highest returns or trying to beat the market. It’s about peace of mind. It’s about knowing your bills are covered, your lifestyle is supported, and your money is working quietly in the background so you can focus on living.

The right mix of retirement income ETFs can help turn decades of hard work into dependable cash flow — month after month, year after year. While no investment is risk-free, building a diversified portfolio centered on quality, income, and consistency can go a long way toward making retirement feel less uncertain and more secure. In the end, the goal isn’t just to retire — it’s to retire confidently, knowing your portfolio is built to support the life you’ve earned.

This week’s earnings calendar highlights three very different but compelling stocks: Spotify (NYSE: SPOT), Coca-Cola (NYSE: KO), and Cisco Systems (NASDAQ: CSCO). Each enters its report from a distinct position. Spotify is coming off a steep selloff that has reset expectations despite strong recent operating results. Coca-Cola, by contrast, heads into earnings with momentum on its side, benefiting from steady demand, pricing power, and its reputation as a defensive stalwart. Cisco sits at all-time highs, reflecting renewed optimism around AI-driven networking demand and enterprise infrastructure spending.

Taken together, these companies offer a snapshot of how the market is rewarding—or punishing—different narratives ahead of earnings. For investors willing to look beyond the surface, this earnings week may reveal compelling stocks where risk and reward are no longer evenly priced, setting the stage for meaningful post-earnings moves.

Compelling Stocks Reporting Earnings: Spotify

Weakness may be an opportunity for Spotify when it posts earnings on Tuesday. Since peaking in September, SPOT stock is down about 43%. 

But that’ll happen if weaker-than-expected guidance and news lead it to part ways with its longtime chief executive officer (CEO), who will remain involved as Executive Chairman.

In its last report, earnings per share (EPS) of 3.28 euros crushed estimates of 1.97 euros. That was also higher than the 1.45 euros posted year over year. Revenue of 4.27 billion euros was also better than estimates for 4.23 billion euros. It also saw its monthly active users jump by 11% to 713 million. Premium subscribers jumped 12% to 281 million, in line with expectations.

However, we should note two key negatives in the report.

As reported by the company, its gross margin of 31.6% was 50 basis points ahead of guidance because of “rights holder liabilities.” If that were to be excluded, Spotify’s gross margins would have only been “modestly ahead of guidance due to content cost favorability,” as noted by Founder and Executive Chairman Daniel Ek in Q3 2025 earnings commentary. 

Not helping: SPOT forecast fourth-quarter revenue of 4.5 billion euros, below expectations of 4.56 billion euros. It also said it expects total premium subscribers to reach 289 million, short of estimates for 291.1 million.

However, weakness may be an opportunity. 

With a good deal of negativity now priced into the stock, we’re seeing opportunity. Analysts at Oppenheimer said SPOT’s recent $1 monthly price hike could help the stock get on track again. Also, analysts at Goldman Sachs have a buy rating on the stock, noting that investors should take advantage of the drop in SPOT shares. The firm also has a price target of $700.

Compelling Stocks Reporting Earnings: Coca-Cola

Red-hot Coca-Cola will also post earnings on Tuesday. Since bottoming out at around $67.50 in early January, the stock is now up to $79.03 heading into its report. At the moment, KO is expected to post revenue of about $12 billion, up 4% year over year. Adjusted EPS of 57 cents is also expected, which would be 3.6% growth.

Analysts at UBS have a buy rating on the KO stock with an $82 price target. As noted by Investing.com, “UBS analyst Peter Grom forecasts fourth-quarter earnings per share of $0.56, slightly below the Visible Alpha consensus of $0.57, but still expects Coca-Cola to deliver ‘another quarter of +MSD organic growth’ with initial guidance pointing to “another on-algorithm year ahead.”

Compelling Stocks Reporting Earnings: Cisco

Sitting at all-time highs, Cisco will post earnings after the bell on Wednesday.

And if numbers are as good as they were in November, the stock could see higher highs.  

In November, the stock gapped from about $71.34 to a high of about $80 after posting better-than-expected EPS and revenue. Plus, at the time, CSCO said that AI infrastructure orders from “hyper scaler customers” reached $1.3 billion, “reflecting a significant acceleration in growth,” as quoted by CNBC.

“Our relevance in AI continues to build,” CFO Mark Patterson added. “We have a multi-year, multi-billion-dollar campus refresh opportunity starting to ramp, with strong demand for our refreshed networking products.” 

Analysts at Evercore just upgraded the tech giant to outperform with a $100 price target. With regard to AI, the firm said, “Cisco is on track to deliver AI revenues of about $3.0B in fiscal year 2026 (about 5% of sales) and orders of more than $4.0B (versus $2.0B last year),” as noted by Seeking Alpha.

Which of These Compelling Stocks Appeals to You?

With earnings season heating up, Spotify, Coca-Cola, and Cisco each present a different but compelling case heading into their reports. 

Spotify’s selloff has reset expectations and may have already priced in much of the recent negativity, leaving room for upside if margins stabilize and subscriber trends hold. 

Coca-Cola continues to show why it remains a core defensive holding, pairing steady growth with strong price action and dependable execution. Meanwhile, Cisco’s position at all-time highs reflects growing confidence in its AI-driven growth story — and if management delivers again, the stock could continue to push higher.

The Strategy Behind the Dogs of the Dow

The Dogs of the Dow strategy is made up of two distinct parts. The first is to invest, and the second is to rebalance.

Part one: Invest equal amounts into the 10 highest-dividend-yielding stocks from the Dow Jones Industrial Average. Because the Dow Jones Industrial Average is widely regarded as a benchmark of the broader U.S. stock market, its component stocks represent the entire U.S. market. Furthermore, these are blue-chip stocks that are strong enough to withstand the test of time.

Part Two: Rebalance the portfolio every year into equal amounts of the 10 highest-yielding stocks in the Dow. The rationale for doing this every year goes back to research that indicates that, over the long term, the strategy generates higher returns then buying shares of an index fund tied to the DJIA, or even the S&P 500.

It’s a deceptively easy strategy, but it requires discipline. If this strategy appeals to you, here’s a cheat sheet to help you execute this strategy in 2026.

Dogs of the Dow: 2025 and 2026

For 2025, here’s how the Dogs of the Dow are doing with just days to go.

• Verizon (NYSE: VZ), which yields 6.85%, started the year at around $38. It’s now up to $40.
• Chevron (NYSE: CVX), which yields 4.54%, ran from about $142 to $150.50.
• Johnson & Johnson (NYSE: JNJ), which yields 2.5%, ran from $142 to $207.78.
• Amgen (NASDAQ: AMGN), which yields 3.02%, ran from about $258 to $334.
• Merck (NYSE: MRK), which yields 3.19%, traded between approximately $98 and $106.45.
• Coca-Cola (NYSE: KO), which yields 2.91%, jumped from $61 to $70.11 so far.
• IBM (NYSE: IBM), which yields 2.21%, ran from about $215 to a $304.56.
• Cisco (NASDAQ: CSCO), which yields 2.1%, ran from about $58 to $78.
• McDonald’s (NYSE: MCD), which yields 2.37%, ran from about $293 to $313.
• Procter & Gamble (NYSE: PG), which yields 2.93%, fell from about $264 to $144.50.

That’s not bad at all.

Plus, once you factor in the yields for each, the Dogs of the Dow outperformed the Dow Jones.

As for 2026, while the official list isn’t out just yet, here’s what’s likely to make the list.

• Verizon (VZ), which yields 6.84%
• Chevron (CVX), which yields 4.56%
• Merck (MRK), which yields 3.2%
• Procter & Gamble (PG), which yields 2.92%
• Amgen (AMGN), which yields 3.04%
• Coca-Cola (KO), which yields 2.92%
• Nike (NYSE: NKE), which yields 2.72%
• UnitedHealth (NYSE: UNH), which yields 2.68%
• Home Depot (NYSE: HD), which yields 2.64%
• Johnson & Johnson (JNJ), which yields 2.51%

A Strategy With a Proven Track Record

Historically, the Dogs of the Dow do very well for income-oriented investors.

• The 2024 Dogs of the Dow underperformed the major indices in 2024. However, with dividends, investors still did well for the year.
• The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones’ Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall.
• The 2022 Dogs of the Dow beat the major indices, even in a rough year.

In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%.  The S&P 500 lost 19%.  The Dow Jones lost about 9%.

• In 2021, the Dogs of the Dow returned about 16.3%.
• In 2019, the Dogs were up 20%. 
• In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. 
• In 2017, the dogs were up 19%.  In 2016, they were up 16%.

While 2020 wasn’t a great year for the Dogs, it wasn’t great for a lot of stocks for obvious reasons. However, most other years, the Dogs of the Dow have performed very well. 

Should You Buy the Dogs of the Dow in 2026?

The Dogs of the Dow remains one of the simplest income strategies available to retail investors, and its track record speaks for itself. While the strategy doesn’t outperform every year, the long-term results show consistent dividend income and competitive total returns, especially during volatile market cycles. With yields still attractive and several blue-chip names likely to appear on the 2026 list, the setup for the coming year looks compelling. As always, discipline and annual rebalancing are key. For patient investors who value simplicity and dependable dividends, the Dogs of the Dow remain worth serious consideration.