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.
How Does SCHD Fare Vs. The SPY And Other Yield Plays?
SCHD has large net overweights to the Energy (especially upstream O&G), Industrials and Consumer Staples sectors vs the S&P500. SCHD's industrials overweight may not be favorable given contracting US Manufacturing PMI data. I don't like how SCHD has zero exposure to some of the SPY's Top 10 Magnificent 7 stocks I am bullish on; NVIDIA, Microsoft and Amazon.
Should Schwab U.S. Dividend Equity ETF (SCHD) Be on Your Investing Radar?
If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Schwab U.S. Dividend Equity ETF (SCHD), a passively managed exchange traded fund launched on 10/20/2011.
2 ETFs For Value And Growth (Not Named SCHD)
ETFs offer instant diversification, mitigate risk, and are ideal for both new and experienced investors seeking long-term wealth growth. SPLG is a cost-effective S&P 500 ETF with a low expense ratio and nearly identical performance to pricier peers, making it a smart core holding. CGDV has outperformed SCHD and the S&P 500 since inception, offering value, growth, and downside protection with a reasonable expense ratio.
Why I'm Considering SCHD ETF for Dividends – What Am I Missing?
The SCHD is a fantastic ETF to build the core of your portfolio around. For some, it's fine to keep loading up on the SCHD.
Building A $75,000 Dividend Portfolio: Enhancing SCHD With June's Top High-Yield Picks
I present a diversified dividend portfolio blending SCHD, RQI, JEPI, and 15 individual companies for both income and growth potential. Strategic allocations prioritize SCHD (35%) for dividend growth and capital appreciation, with RQI and JEPI enhancing sector and income diversification. Careful stock selection emphasizes attractive payout ratios, robust dividend growth, and sector/geographical diversification to manage risk and boost returns.
Forget 'TACO' And Buy SCHD
I prefer buying attractively valued, high-yield dividend stocks like SCHD over short-term trading strategies for long-term, low-stress wealth building. SCHD offers a 4% yield, strong dividend growth, and lower volatility than the S&P 500, making it ideal for income and value investors. This ETF holds high-quality, defensive stocks across Consumer Staples, Energy, and Healthcare, providing diversification and downside protection in volatile markets.
