The stock market has had a rough start to 2025 and growth investors are worried about what might come next.
SCHD constantly underperforms the S&P 500 due to focusing on dividend growth without considering valuation, leading to long-term underperformance. The ETF's top holdings often reach high valuations due to gains, not because they were bought cheaply. SCHD's performance during market downturns is only slightly better than the market, failing to close the gap with the S&P 500.
Schwab's SCHD ETF and Vanguard's VIG ETF both offer multi-sector exposure to dividend-paying firms.
Within the past 1-month period, the Schwab U.S. Dividend Equity ETF has significantly outperformed the S&P 500 (0.61% vs. -6.90%). Supplementing SCHD with March's Top 10 high dividend yield companies and 5 attractive risk and reward choices, you can significantly increase the ETF's potential for dividend income. I will provide you with strategic guidance on how to build a $500,000 dividend portfolio, holding the Schwab U.S. Dividend Equity ETF as the largest position.
Need reliable investment income? Dividend stocks are your obvious choice.
Let's say you have some money in your pocket you want to invest, but you're not sure where to put it. Perhaps you're extra worried due to recent market volatility.
Occasionally, Wall Street reminds investors that stocks don't move higher in a straight line. Over the last three weeks and change, this message has been received, loud and clear.
Stock market sell-offs are often great opportunities to buy dividend stocks. That's because dividend yields move in the opposite direction of stock prices.
Everyone knows about the S&P 500 Index (^GSPC 2.13%), which is probably the most recognized market gauge in the world. But have you heard of the Dow Jones U.S. Dividend 100 Index?
These three funds have dipped significantly—creating a rare buying opportunity for income investors. Get exposure to a well-diversified and battle-tested portfolio that should pay out stable and growing income through all sorts of economic environments. Generate strong monthly income while positioning for long-term dividend growth and capital appreciation.
Volatility has returned, but SCHD has shown resilience, outperforming the S&P 500 with a high-yielding, fast-growing distribution. SCHD follows the Dow Jones U.S. Dividend 100 Index, focusing on high dividend-paying U.S. companies with strong financials and consistent payouts. SCHD's long-term performance and consistent dividend growth make it a stable investment, especially during market downturns.
This dividend combo of SCHD and SCHY provides a robust hedge against falling rates and a weakening dollar. Holdings in SCHD and SCHY are strategically positioned to capture yields that are now near historical peaks. SCHD and SCHY offer a double dose of hedging benefits, making them attractive for risk-averse investors.