Who doesn't want passive income? Even Warren Buffett has extolled it, reportedly saying, "If you don't find a way to make money while you sleep, you will work until you die.
The Schwab US Dividend Equity ETF (SCHD) has become a giant $68 billion behemoth, highly popular among dividend-seeking investors, especially retirees. It is a five-star rated fund with a strong record of dividend distributions and growth.
The Schwab U.S. Dividend Equity ETF™ is ideal for conservative, long-term investors seeking stable returns and growing dividends, despite being less exciting than other options. The SCHD ETF tracks the Dow Jones 100 Dividend Index, ensuring effective exposure to high-quality, dividend-growing stocks, and undergoes annual reconstitution for optimal performance. Top holdings like Coca-Cola, AbbVie, and Amgen offer strong dividend growth and stability, making the ETF a reliable choice for retirement portfolios.
SCHD needs little introduction. It's a $68 billion ETF with a 0.06% expense ratio, a 3.57% trailing dividend yield, and an 11.59% five-year dividend growth rate. These high-level statistics are easily retrievable on SCHD's quote page, but this article aims to enhance your understanding of the fund by providing unique insights on its fundamentals. Divided into four sections, this article covers SCHD's overlap with large-cap ETFs, its compelling factor mix, a company-level comparison with four peers, and a preview for the March 2025 reconstitution.
SCHD is a popular ETF for dividend growth investors, offering a low expense ratio, attractive yield, and a history of solid performance. The ETF's quarterly rebalancing can be a double-edged sword, often selling high-performing stocks like Microsoft and Exxon Mobil too early. Despite its strengths, I prefer using SCHD for idea generation, focusing on a buy-and-hold strategy to let winners ride.
The S&P 500 index currently yields a tiny 1.2%. You can get roughly three times the yield if you buy the Schwab U.S. Dividend Equity ETF (SCHD -0.69%).
Investing in the stock market may not seem like a great idea these days given how expensive many stocks are and the uncertainty around the economy. But even if individual stocks don't look terribly tempting to you, one option to consider may be some exchange-traded funds (ETFs).
The Schwab US Dividend Equity ETF (SCHD) is hovering near its all-time high as the earnings season takes shape. SCHD was trading at $27.95 on Thursday, a few points below its all-time high of $29.45.
The Schwab U.S. Dividend Equity ETF (SCHD) was launched on 10/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
There is a huge temptation for income-focused investors to buy the highest-yielding stocks in an effort to boost the cash they generate from their portfolios. Anyone who has done this likely knows that buying based on yield alone can end up with you buying poorly run companies and result in diminished returns through often painful dividend cuts.
SCHD is a strong buy due to its high dividend yield and growth, especially amid market panic over Chinese AI threats and tech stock volatility. SCHD outperforms rivals VIG and VYM in liquidity, dividend yield, and growth, making it a superior choice in the current uncertain market. Despite higher concentration risks, SCHD's technical setup shows bullish momentum, indicating positive short-term sentiment and potential for continued upward movement.
Dividend stocks make great long-term investments. For example, an investor who bought $100 worth of average dividend stocks in 1973 would have seen that investment grow to over $8,700 as of the end of 2023, according to a study from Hartford Funds and Ned Davis Research.