How I Am Using SCHD To Plan For My Early Retirement
I discuss my use of the Schwab U.S. Dividend Equity ETF™ for planning early retirement, weighing the merits of total returns versus dividend yields. Historical data shows dividend stocks like those in the SCHD ETF typically underperform the broader market, but I argue the trade-off is worth it for income reliability. My goal is to increase my dividend stock exposure to 50% of my portfolio to cover half my living expenses, accepting lower total returns for income stability.
SCHD: Kick Back And Let The Good Times Roll
The Schwab U.S. Dividend Equity ETF offers automatic diversification, income, and growth with a 3.5% dividend yield and low 0.06% expense ratio. SCHD's diversified portfolio of 103 holdings includes top dividend growth names like Pfizer, Coca-Cola, and AbbVie, well-positioned for long-term returns. With a strong dividend growth history and defensive sector focus, SCHD is ideal for dollar-cost averaging, especially in uncertain market environments.
How To Build A $100,000 Dividend Portfolio: SCHD As The Core For Income And Growth
Even though the Schwab U.S. Dividend Equity ETF offers investors an attractive blend of dividend income and dividend growth, a reduced level of diversification can be noted. Today's article aims to reduce the ETF's weaknesses by enhancing it with January 2025's top 10 high dividend yield companies and 5 individually selected dividend growth companies. I will show you how to allocate the amount of $100,000 across SCHD and these 15 individually selected companies to increase your portfolio's level of diversification.
Best all-weather SCHD ETF stocks to buy and hold in 2025
The Schwab US Dividend Equity (SCHD) ETF has done well in the past decade as it became one of the biggest dividend and sleep-well-at-night (SWAN) funds. It has soared by over 400% since its inception in 2012 and generated more total returns than other funds.
2 Reasons Why I'm Buying SCHD Over S&P 500
The S&P 500 is overvalued and concentrated. SCHD offers a favorable alternative with a 3.55% dividend yield, focusing on value stocks and dividend growers, which are better suited for the current high-yield environment. Value stocks in SCHD are historically cheap relative to growth stocks, making them attractive, especially given the current interest rate landscape.
SCHD: A Great Way To Miss Out On Wealth Accumulation
I strongly advise against investing in the Schwab U.S. Dividend Equity ETF due to its consistent underperformance compared to broader market indices. Despite its focus on high dividend-yielding, financially sturdy stocks, SCHD's returns have lagged behind the S&P 500, NASDAQ, and Dow Jones Industrial Average. Alternative portfolios, including individual high-yield stocks like AT&T and Truist Financial, offer better returns and higher yields than SCHD.
SCHD Vs. VYM: This Chart Shows It's Time To Buy SCHD
The higher-for-longer rate scenario has pressured the valuation of dividend stocks due to their bond-proxy flavor. However, the pressure is not felt evenly between SCHD and VYM. SCHD's yield spread over VYM is at a decade high, signaling an undervaluation and prompting an upgrade to Buy for SCHD.
SCHD: 3 Reasons It Likely Underperforms
SCHD faces tax inefficiencies due to double taxation on dividends, reducing overall returns compared to tax-deferred capital gains strategies. SCHD is structurally underweight in AI, missing out on significant long-term growth opportunities from transformative technologies and sectors. Focusing on energy and not utilities may be a mistake, in light of AI's secondary impacts on energy infrastructure development.
2 High-Yield Dividend ETFs to Buy to Generate Passive Income
It can be a little dispiriting to be a dividend investor today, given that the S&P 500 index (^GSPC -1.54%) has a tiny 1.2% yield. That, however, doesn't mean you can't find simple ways to boost the income your portfolio generates.
Buy The Dip: SCHD's Top Holdings Show That It Is Way Too Cheap
SCHD has pulled back sharply recently. When looking at its top holdings, SCHD looks like a clear buy. We provide a look at each of its top 10 holdings and show why we think they make SCHD an attractive buy right now.
SCHD: Why I Am Aggressively Buying The Drop
The Schwab U.S. Dividend Equity ETF is a reliable investment with average annual returns approaching 14% annually since 2011. I recommended SCHD in September due to its attractive value for dividend investors; despite recent drops, it remains a strong investment solution for investors that want to generate income. SCHD has a strong long-term return profile, steady distributions, and potential for capital appreciation. The ETF is well-diversified, defensively-positioned and has achieved considerable NAV growth in the last 5 years.
Is the Schwab U.S. Dividend Equity ETF a Dividend ETF Still Worth Buying in 2025?
In this video, I will talk about the Schwab U.S. Dividend Equity ETF (SCHD 0.66%) and whether this could be a great pick for dividend investors in 2025. Watch the short video to learn more, consider subscribing, and click the special offer link below.
