Summary
SCHD ETF Alternative Strategy Aimed For Higher Total Return
My 4-Factor Dividend Growth Portfolio, launched in November 2022, consistently outperforms SCHD, with a 14.78% annualized return versus SCHD's 7.34%. The strategy selects 20 stocks annually using free cash flow to debt, 5-year dividend growth, ROIC, and forward yield from a high-quality, growth-focused universe. Recent modifications incorporating expected rate of return as a filter have yielded mixed results, with some months outperforming and others lagging the original method.
SCHD ETF: 2025 Reconstitution Impact And 2026 Outlook
Following the 2025 reconstitution, Schwab U.S. Dividend Equity ETF (SCHD) now has its largest sector exposure in Energy at 19.3%. Heavy energy weighting has dragged SCHD's performance YTD and may continue to do so amid oil price uncertainties. These uncertainties include OPEC+ production, Russian supply, and most importantly, China's demand.
SCHD: What If AI Capex Returns Disappoint?
Schwab U.S. Dividend Equity ETF remains a Strong Buy, offering defensive exposure amid peak AI optimism and muted tech stock reactions. SCHD's portfolio emphasizes dividend yield and growth, with defensive sector allocations providing diversification from potential AI-related risks. Despite underperformance versus tech-heavy peers due to limited tech and high energy exposure, SCHD outperformed the S&P 500 recently as sentiment shifted.
Schwab U.S. Dividend Equity ETF (SCHD) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Schwab U.S. Dividend Equity ETF ever had a stock split?
Schwab U.S. Dividend Equity ETF Profile
| ARCA Exchange | US Country |
Overview
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.
Products and Services
- High Dividend Yield Stock Investments
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.
- Financial Ratio-Based Stock Selection
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.
- Investment in Index-Included Stocks
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.
Contact Information
