SCHD hits a new 52-week high as investors seek high income amid market uncertainty.
The Schwab U.S. Dividend Equity ETF has outperformed the S&P 500 year-to-date, silencing the detractors who thought it could never outshine. SCHD offers less aggressive and volatile portfolio positioning with sector allocations favoring Healthcare (20.7%), Consumer Defensive (19%), and Energy (14%), plus +3.2% dividend yield. Top SCHD holdings — Home Depot, Merck, UnitedHealth, Amgen — are A+ rated for profitability, supporting the ETF's focus on dividend quality and stability.
SCHD's focus on defensive, high-quality dividend stocks and sector diversification has delivered robust total return prospects across dividend yield, payout growth, and capital appreciation. Their exposure to inelastic healthcare/household/communication sectors underpin their resilience amid macro/geopolitical uncertainty and higher-for-longer inflation expectations. This is on top of the focus on discounted stocks offering robust dividend yields/payout growth, with further upside possible upon upward valuation re-rating.
| Capital Markets Industry | Financials Sector | - CEO | XKLS Exchange | MYQ0161OO008 ISIN |
| US Country | - Employees | 24 Jun 2026 Last Dividend | 11 Oct 2024 Last Split | - IPO Date |
The company operates a mutual fund with a primary focus on investing in high dividend yielding stocks of U.S. companies that demonstrate a consistent record of paying dividends. These companies are selected based on their fundamental strength, which is assessed using various financial ratios. This strategic selection is aimed at ensuring the fund’s investments are directed towards stocks that not only offer high dividend yields but also possess a strong financial foundation compared to their peers. By doing so, the fund seeks to provide its investors with a potentially stable and rewarding investment option that capitalizes on the performance of dividend-paying stocks within the U.S. market.
The primary product offered by the fund is the investment in high dividend yielding stocks. These stocks are meticulously selected from the U.S. market, focusing on companies with a solid record of consistent dividend payments. This product is designed for investors looking for opportunities in dividend-generating stocks that have the potential for stable returns. The strategic selection process ensures that investments are made in fundamentally strong companies, thereby aiming to safeguard and potentially grow the investors’ capital through dividends and stock performance.
This service underscores the fund's approach to selecting stocks based on financial ratios. It reflects the fund's commitment to fundamental analysis, evaluating each potential investment's financial health against set benchmarks. This rigorous selection process is geared towards identifying companies that are not only paying high dividends but are also fundamentally strong and stable compared to their industry peers. It is a qualitative service that complements the investment product, offering investors peace of mind that their investments are selected through a thorough and disciplined evaluation process.
The fund commits to investing at least 90% of its net assets in stocks included in the index designed to measure the performance of high dividend yielding U.S. stocks. This approach allows the fund to align with the index's performance, capitalizing on the collective strength of the selected dividend-yielding companies. It offers investors an opportunity to engage with a broad range of dividend-paying stocks while leveraging the fund’s expertise in identifying and investing in those deemed to have superior fundamental strength.