How Does SCHD Fare Vs. The SPY And Other Yield Plays?
SCHD has large net overweights to the Energy (especially upstream O&G), Industrials and Consumer Staples sectors vs the S&P500. SCHD's industrials overweight may not be favorable given contracting US Manufacturing PMI data. I don't like how SCHD has zero exposure to some of the SPY's Top 10 Magnificent 7 stocks I am bullish on; NVIDIA, Microsoft and Amazon.
Should Schwab U.S. Dividend Equity ETF (SCHD) Be on Your Investing Radar?
If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Schwab U.S. Dividend Equity ETF (SCHD), a passively managed exchange traded fund launched on 10/20/2011.
2 ETFs For Value And Growth (Not Named SCHD)
ETFs offer instant diversification, mitigate risk, and are ideal for both new and experienced investors seeking long-term wealth growth. SPLG is a cost-effective S&P 500 ETF with a low expense ratio and nearly identical performance to pricier peers, making it a smart core holding. CGDV has outperformed SCHD and the S&P 500 since inception, offering value, growth, and downside protection with a reasonable expense ratio.
Why I'm Considering SCHD ETF for Dividends – What Am I Missing?
The SCHD is a fantastic ETF to build the core of your portfolio around. For some, it's fine to keep loading up on the SCHD.
Building A $75,000 Dividend Portfolio: Enhancing SCHD With June's Top High-Yield Picks
I present a diversified dividend portfolio blending SCHD, RQI, JEPI, and 15 individual companies for both income and growth potential. Strategic allocations prioritize SCHD (35%) for dividend growth and capital appreciation, with RQI and JEPI enhancing sector and income diversification. Careful stock selection emphasizes attractive payout ratios, robust dividend growth, and sector/geographical diversification to manage risk and boost returns.
Forget 'TACO' And Buy SCHD
I prefer buying attractively valued, high-yield dividend stocks like SCHD over short-term trading strategies for long-term, low-stress wealth building. SCHD offers a 4% yield, strong dividend growth, and lower volatility than the S&P 500, making it ideal for income and value investors. This ETF holds high-quality, defensive stocks across Consumer Staples, Energy, and Healthcare, providing diversification and downside protection in volatile markets.
3 Upcoming Dividend Increases
I focus on companies with a strong track record of dividend growth, using data from Dividend Champions and NASDAQ to identify reliable opportunities. This week's highlighted stocks average a 7.3% dividend increase and 11-year streaks, with NDAQ and HWBK outperforming the SCHD benchmark over ten years. My investment strategy prioritizes stocks with significant alpha over SCHD, strong earnings, and consistent dividend growth, not just marginal outperformance.
SCHD ETF Alternative Strategy: Cruising Along With A 15.32% CAGR
My 4-Factor Dividend Growth Strategy, launched in November 2022, customizes SCHD's stock selection for a more growth-oriented investment style. Following a 3.19% gain in May, the portfolio's long-term CAGR remains strong at 15.32%, outperforming SCHD but trailing the S&P 500. The portfolio's forward dividend yield decreased to 2.28%, as a result of positive capital appreciation.
SCHD: The Q1 Earnings Season Sends Mixed Signals
Given the uncertain environment, I continue to accumulate Schwab U.S. Dividend Equity ETF™, balancing my AI optimism with a need for defensive positioning. The market's aggressive risk appetite overlooks ongoing macro uncertainties, making a defensive allocation like SCHD increasingly prudent. SCHD isn't immune to market panic and has notable exposure to volatile energy prices, but its dividend consistency remains a key strength.
SCHD: A Great Defensive Way To Generate Income
SCHD offers a compelling combination of low fees, high dividend yield, and attractive valuation compared to broader market ETFs like SPY. The ETF is concentrated in value and defensive sectors, making it less diversified but more resilient and income-focused than peers such as VYM and DGRO. Despite lagging in recent total returns, SCHD's lower drawdown and higher yield make it appealing for conservative, income-oriented investors.
Let's Get Real: SCHD Has Been A Chronic Underperformer
SCHD's 3.9% yield is attractive, but total return performance has lagged broad market ETFs like SPY and VTI over most timeframes. The fund's high concentration in its top holdings increases risk, where underperformance by a few names can drag down overall returns. SCHD has not been tested in a prolonged recession. High-yielding stocks often see dividends cut and share prices fall in such an environment.
SCHD: A Strong Option For Income-Focused Portfolio
SCHD offers a diversified, large-cap U.S. dividend portfolio with a 3.9% yield, low 0.06% expense ratio, and moderate valuation. While SCHD has underperformed the S&P 500 over 3, 5, and 10 years, it provides some downside protection and steady income. SCHD is ideal for investors seeking reliable dividend growth and portfolio defensiveness, especially as a complement to growth stocks.
