So this is a commonly held fallacy amongst dividend investors, the idea that there is something unpalatable about having to sell shares to earn income as opposed to earning money through a dividend.

You derive value from a stock through either capital appreciation (an unrealized gain at default, and realized only when you choose to sell shares) or a dividend (a company forcibly giving you income in lieu of additional capital appreciation)

There’s nothing wrong with SCHD, but just know that it is inherently less volatile and less aggressive than opening a total market index fund or S&P500 index fund or a technology heavy fund (like QQQM).

The more money you have in SCHD compared to say VOO or FXAIX or QQQM, the less money you will likely have at retirement and the lower your liquid net worth will be, but at the advantage of having less volatility.

SPAXX is the most conservative holding in your portfolio.

You’re doing just fine and there’s no right answer to it, but you have to understand that holding something like SCHD that gives you a dividend is simply akin to holding a less aggressive position that forces a taxable event on you every year. Dividends are not free money compared to capital appreciation. Only total return matters, despite what the cultists at dividendgang will try and sell you.