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By Mauro Orru

Reddit is taking the Australian government to court to block its social-media ban for children under the age of 16, saying the ban infringes on their freedom of political discourse.

Australia became the first country in the world to enact a social-media ban for under-16s this week after a law that requires 10 popular social-media platforms to prevent anyone under that age from holding an account took effect on Wednesday.

Australian officials have said the law is needed to protect teenagers from the dangers of social media and make it easier for parents to keep their children off platforms until they are more mature. However, some tech giants have voiced opposition to the ban.

San Francisco-based Reddit is seeking to have the law invalidated. Its lawsuit, filed Friday in Australia's highest court, paves the way for what could be a protracted legal battle with the government.

The company said the law could suppress teenagers' freedom to take part in political discourse years before they become voters. Reddit also said there are large troves of content on several platforms that users can view without an account, meaning that the reduction of risk of harm to teenagers--a key objective of the law--would be minimal at best.

"The Albanese government is on the side of Australian parents and kids, not platforms," a government spokesperson said in a statement. "We will stand firm to protect young Australians from experiencing harm on social media. This matter is before the courts so it is not appropriate to comment further."

Apart from blocking the law, Reddit is also seeking a declaration that it isn't an "age-restricted social media platform," a definition that requires it to comply with the ban. While logged-out users can't post, comment, vote, join subreddits, use the chat function or act as moderators, content on the platform remains largely accessible to anyone.

Reddit said it introduced changes to comply with the law, such as age prediction for users in Australia as well as stricter chat settings, no ads personalization or sensitive ads and no access to mature content. However, it said the platform would remain accessible to browse without an account.

Facebook and Instagram owner Meta Platforms also criticized the law, saying it could push teens toward less regulated platforms or apps and that legislation empowering parents to approve app downloads and verify age would be a better solution.

"Experts, youth groups, and many parents agree that blanket bans are not the solution--they isolate teens from online communities and information, while providing inconsistent protection across the many apps they use," a Meta spokesperson said.

Write to Mauro Orru at mauro.orru@wsj.com

By Ian Salisbury

America has a K-shaped economy. The performance of dividend funds is similar.

The stock market has returned more than 18% so far this year, including dividends. The fact that the rally is led by fast-growing tech companies makes it hard for dividend stocks, dedicated to handing cash back to investors, to keep up.

But some have done better than others. Take a look at the $120 billion Vanguard Dividend Appreciation ETF, the market's largest dividend exchange-traded fund. It's up 16% this year. By contrast, one of its main rivals, the $72 billion Schwab US Dividend Equity ETF, has returned just 5.3%.

What gives? The two funds' approaches to dividends aren't so different from the current socioeconomic split between two Americas.

One group of people in the U.S. is thriving, with wealth rising like the upper arm of a letter K. It is benefiting from the extraordinary excitement around artificial intelligence that is lifting the prices of tech stocks and swelling the bank accounts of those that own them.

Another segment of U.S. represents the K's lower arm. The majority of consumers are struggling with tepid wage growth and stubborn inflation.

The realm of dividend funds shows the same kind of divergence. Vanguard Dividend Appreciation focuses on companies that grow their dividends, giving it a tech-first portfolio, with top holdings that include Broadcom, Microsoft, and Apple.

Schwab U.S. Dividend Equity ETF takes a more traditional approach, targeting stocks with strong fundamentals and sustainable payouts. Its top holdings include companies like Coca-Cola, ConocoPhillips, and Chevron. It is heavily invested in consumer staples and energy, two sectors that have badly lagged behind the market in 2025.

Schwab U.S. Dividend Equity has some strong points. It yields 3.8%, compared with 1.6% for the Vanguard fund, an important consideration for dividend investors who want income. And its portfolio is arguably undervalued as a result of the market's obsession with growth. Shares in its portfolio trade at an average of 14 times forward earnings, compared with 21 times for the Vanguard fund.

That means that if the market really is in an artificial-intelligence bubble, and that bubble pops. the ETFs' fortunes could quickly reverse. The tech stocks that have boosted the Vanguard fund would slide, while companies like Coca-Cola could rise as investors reallocate their cash.

That said, investors in Schwab U.S. Dividend Equity will have to be patient. With stubborn inflation and a weakening job market, consumer stocks don't seem likely to rebound soon.

And the picture for energy stocks is even gloomier. Oil prices tumbled about 20% in 2025. With oil companies still pumping at a breakneck rate, they look set to fall further in 2026.

The upshot is that as long as the market rally giving the economy its K shape continues, these funds will remain the dividend world's haves and have-nots.

Write to Ian Salisbury at ian.salisbury@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.