Why would someone choose to invest in a high-dividend fund instead of a standard S&P 500 index fund?
On a podcast I listen to, they frequently recommend SPYI and emphasize the dividend income they receive.
From my perspective, if that money were invested in something like VOO, they would have seen higher growth this year. Plus, if you’re spending your dividends rather than reinvesting them, can you really expect the fund’s value to grow significantly?
It also relies on the tax system in the nation in which you reside. For instance, accumulating ETFs are subject to annual unrealized profit taxes in Denmark. In contrast, index funds are only distributed on realized gains (plus dividends).
I bought a basket of preferred stocks a few weeks ago, and they have increased significantly since then. It’s the only way to ensure better returns moving forward. 
It all comes down to relative value. I decided to exit the S&P 500 because I thought it was a bit overvalued it’s largely dominated by big tech now and shifted to dividend-growth stocks, which have outperformed. Once the S&P 500 underperforms for a while, I might rotate back.
Dividends are unreasonably believed to be safer than capital gains by some people. They are not correct. All they are are coerced sales.
Concentrate on overall return, tax efficiency, and congratulations for avoiding the dividend myth.
For those wary of mega tech companies, there’s the S&P 600. Alternatively, the Russell 2000 (RUT) focuses on small-cap stocks. 
I would contend that there are other options than going straight to small caps if you are concerned about giant companies and the volatility they could bring.
It’s intended for individuals seeking income. In my opinion, it doesn’t make much sense if you’re not retired. However, for retirees, it’s important to evaluate the tax rate on dividends versus the benefits of periodically selling for capital gains, so it’s not a straightforward decision.
Since dividends are a zero-sum event that decreases share and NAV prices by the dividend amount, they don’t really impact overall returns. The primary motivation is often tax-related.
Whereas just the gain share of sales proceeds is considered income, dividend income represents 100% of total revenue. Dividends are bad from a tax and associated perspective.
Exactly. I subscribe to Medicaid Expansion despite having a net worth in the seven figures and nearly seven figures in non-IRA assets. I have been very cautious about avoiding income-generating stocks in my non-IRA accounts. I believe I can have a “random income event” occasionally by selling a long-term gain for 0% tax, since Medicaid eligibility is assessed on a month-to-month basis. If it’s an unexpected event like that, it shouldn’t affect my eligibility, at least as long as it’s not a lottery win.
The 325,000 personal financial advisors in the US have all gone fishing if that was so easy. In investing, there is no one-size-fits-all formula.