SCHD ETF Alternative Strategy: 15.99% CAGR After Strong June Results
My 4-Factor Dividend Growth Portfolio offers a custom, growth-oriented alternative to SCHD, using a fully automated, rules-based stock selection and annual rebalancing. Since its inception in November 2022, the portfolio has delivered a 15.99% CAGR, outpacing SCHD but trailing the S&P 500; the long-term target is 12%+ CAGR. Dividend growth remains strong, with an annualized 9.55% dividend CAGR and a narrowing income gap versus SCHD, despite a lower current yield.
SCHD: Calling Arthur Burns
Schwab U.S. Dividend Equity ETF™ underperforms short term, but remains a top long-term income vehicle amid rising rate cut expectations. Fed pressure parallels 1970s history; Powell may be replaced by a more dovish, rate-cutting Chair in 2026. Dividend ETFs like SCHD offer better tax-adjusted yields than cash equivalents in taxable brokerage accounts.
Why I Continuously Buy More of This Spectacular Dividend Growth Stock
Key Points in This Article: Dividend growth investing ensures steady income and growth, driving my regular share purchases of the Schwab U.S.
SCHD: Did Not Protect Me During Broader Market Panic (Rating Downgrade)
Downgrading SCHD to Hold as recent market volatility exposed its weaker-than-expected defensive qualities, especially during the "Liberation Day" panic. Energy sector exposure and falling oil prices have hurt SCHD's performance, while AI-driven growth stocks have outperformed in the current environment. Technical indicators signal ongoing weakness, with SCHD trading below key moving averages and lacking positive momentum.
SCHD: Income, Yield And Upside Potential
SCHD's recent under-performance is overblown; its long-term track record and 3.9% yield make it a strong wealth-building vehicle. The ETF's March 2025 energy sector overweighting positions it to benefit from rising petroleum prices amid Middle East tensions. Additionally, SCHD's pro-cyclical equity posture positions the ETF for further NAV growth.
Is SCHD's Recent Drawdown a Buying Opportunity Like PEP – Here's What I Discovered
The recent correction in the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has many passive income investors wondering if it's time to load up or jump out.
SCHD: Dividends Are Still A Losing Hand
SCHD remains poorly positioned for 2025, lacking exposure to tech and AI growth drivers fueling the S&P 500's outperformance. Q1 data confirms underperformance: SCHD's top 10 holdings grew revenue by 5% and earnings by 7%, versus 21% and 26% for S&P 500 leaders. SCHD's focus on mature, dividend-paying sectors systematically excludes high-growth mega-cap tech stocks, creating a structural performance gap.
6 Upcoming Dividend Increases
I focus on companies with consistent dividend growth, using a blend of the U.S. Dividend Champions list and NASDAQ data for my selections. This week's highlighted group averages a 5.9% dividend increase and a 19.5-year streak, but none outperformed the SCHD ETF over the past decade. While SCHD remains my benchmark for dividend growth and total return, I look for individual stocks that can deliver significant alpha over it.
3 Money Making Schwab ETFs to Buy in June and Hold Forever
Charles Schwab is known for some of the best investment products in the market today.
SCHD: Why I'm Having Second Thoughts Now (Rating Downgrade)
SCHD offers high-quality, defensive holdings but has lagged the S&P 500 due to sector composition and market dynamics. Energy exposure, once a bullish catalyst, now faces uncertainty amid geopolitical tensions and potential supply gluts, limiting upside. Consumer staples and healthcare sectors show resilience but face resistance and regulatory headwinds, further dampening SCHD's prospects.
SCHD: Please Know What You Own
SCHD is a conservative, diversified ETF best suited for risk-averse investors seeking stable, growing dividends and less downside in tough markets. The fund's sector allocation, especially its current overweight to energy, drives short-term performance swings, but overall it remains broadly diversified. SCHD consistently lags high-growth ETFs like SPY in bull markets but offers better downside protection and income, making it ideal as a core, not sole, holding.
SCHD's Dual Potential For Income And Growth
SCHD offers a balanced investment with a focus on quality dividend-paying stocks and consistent income growth. The ETF's diversified portfolio and disciplined risk management support steady long-term returns and capital preservation. Despite sector concentration risks, SCHD's strong fundamentals and positive technical outlook make it a compelling buy.
