Building A $100,000 Dividend Portfolio: Enhancing SCHD With April's Top High-Yield Picks
Within the past five days, the Schwab U.S. Dividend Equity ETF has declined by 12.12%, allowing investors to invest with a higher margin of safety. In this April 2025 edition of my dividend strategy analysis, I will show you how to enhance SCHD's income by supplementing the ETF with April's top 10 high-yield dividend companies. With a Weighted Average Dividend Yield of 5.06%, this $100,000 dividend portfolio offers investors a superior capacity to produce dividend income in addition to an optimized risk-reward profile.
Should Schwab U.S. Dividend Equity ETF (SCHD) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab U.S. Dividend Equity ETF (SCHD) is a passively managed exchange traded fund launched on 10/20/2011.
SCHD: A Strong Buy After The Rebalancing
Schwab U.S. Dividend Equity ETF offers high diversification, capital appreciation, and dividend growth, making it ideal for passive income investors amid market volatility. Recent rebalancing added 20 new stocks, focusing on cyclical sectors like Energy and Financials, enhancing SCHD's pro-growth profile. Low exposure to technology (7.8%) makes SCHD a potential hedge against tech market downturns, appealing to investors seeking portfolio stabilization.
SCHD: Buy The Dip And Call It A Day
SCHD offers stability and income appeal with a 4.1% dividend yield, significantly higher than SPY's 1.4%, and a lower Beta score of 0.625. SCHD's diversified portfolio focuses on defensive sectors like Energy, Healthcare, and Consumer Staples, providing downside protection and upside potential. SCHD's holdings, like Bristol Myers and Verizon, are undervalued, offering built-in capital appreciation potential alongside strong historical dividend growth rates.
SCHD Alternative Strategy: Weathered March Better Than The S&P 500
The 4-factor dividend growth portfolio is a strategy that leverages the stock selection process of Schwab U.S. Dividend Equity ETF, with a few minor twists. The portfolio had an excellent start to 2025, outperforming the S&P 500 by nearly 7% year-to-date. Since its inception, the portfolio has generated a CAGR of 16.97%, and is outperforming SCHD by 7.35%.
The 4 Biggest Risks to SCHD's 3.7% Dividend Yield
The Schwab U.S. Dividend Equity ETF (SCHD) has been a popular fund for income investors due to its growth and resilience since its inception in 2011.
SCHD: Great Dividend Growth, Excellent For Tough Times
Schwab U.S. Dividend Equity ETF offers a reliable dividend yield, strong sector diversification, and below-average volatility, making it attractive for uncertain times. SCHD has delivered a 10% total return over the past nine months, outperforming the S&P 500's 3% return. SCHD's dividend growth has been consistent, with double-digit increases over the last decade, suggesting a potential annual return of 15%.
Discover How 2 ETFs Can Provide Reliable Income With Minimal Effort
One of the problems that people have when it comes to investing is the belief that they know more than they actually know. This self-confidence isn't bad, per se, but when it comes to investing, it can lead them astray.
Here is Why Everyone Should Own Schwab’s SCHD ETF
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. The current market uncertainty has sparked investor interest in exchange-traded funds and there are plenty to choose from. Since no two funds are equal, you need to choose one based on your goals, risk, and investment horizon. Schwab has several funds that attract investor interest but one fund stands apart for dividend income investors. If you do not want to risk investing in individual stocks but want to enjoy steady passive income, consider Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD). Key points in this article: The ongoing market uncertainty has drawn investors towards low-risk ETFs. The Schwab U.S. Dividend equity ETF has shown steady dividend growth for 12 years. If you think you aren’t anywhere close to your retirement goals, check out the SmartAsset’s free tool that can match you with a financial advisor in minutes to help you answer your questions. They have carefully vetted advisors that act in your best interests. You can get started by clicking here. (Sponsor) How does SCHD work? The Schwab U.S. Dividend ETF tracks the Dow Jones U.S. Dividend 100 Index and invests in a bucket of stocks that have record annual dividend increases. The Net Asset Value of the ETF is $27.58 and enjoys a dividend yield of 3.49%. It is up 3.26% in the year and over 80% in the past five years. The fund has shown a consistent dividend growth of 12 years and has a record of double-digit annualized returns. While past performance is no guarantee for future returns, this fund has managed to prove its strength time and again. The fund has a low expense ratio of 0.060%. By choosing to invest in only those companies that have a record of 10 or more annual dividend increases, the fund sets the bar very high. It does not include Real Estate Investment Trusts (REITs) in its holdings. The fund holding is updated annually, thus, making it easier to remove companies that do not make it to the elite list. This ensures that the fund is always doing well. In a rare move, the EFT went for a three-for-one stock split last year. Low-risk, low-cost and steady returns SCHD (1.17%) has done better than the Nasdaq 100 (-10.15%) and S&P 500 (-4.90%) this year due to its limited exposure to the technology sector. There is a general fear that the AI bubble has burst and this caused tech stocks to drop. SCHD wasn’t much affected by the dip because it invests a small percentage in the tech sector. The fund was recently rebalanced and it removed some of the elite companies like BlackRock and Pfizer. It has also shifted the sectors focusing more on the energy sector this year. Its portfolio reflects: Energy: 21% Consumer staples: 18.7% Healthcare: 16.1% Industrials: 12.5% Technology: 7.9% The ETF holds 97 stocks and has some of the biggest companies that have survived several market ups and downs. Its largest investment lies in ConocoPhillips, Merck & Co., Schlumberger NV, Target Corporation, and General Mills Inc. These are dividend aristocrats who believe in rewarding shareholders. SCHD is very affordable in terms of the expense ratio and has rewarded investors steadily over the years. The fund offers diversification which is a major consideration in current times. With limited allocation to technology stocks, SCHD remains shielded from the market ups and downs to a certain extent. About half of the fund’s portfolio lies in consumer staples and healthcare which are two indomitable industries in the economy. Its top holdings of dividend paying companies ensure a diversified mix and reliable dividends for the years to come. SCHD offers elite stocks for your portfolio The reason why you should own SCHD ETF is to achieve ultimate portfolio diversification. The ETF is attractive because it invests in financially strong businesses with historically high yields. It picks the companies that not only have a high yield but also dividend growth. With a yield of 3.5%, higher than the 1.2% offered by the S&P 500 index, SCHD ETF can help build a financially strong portfolio. Buying each of these stocks could cost you more but investing in a low-cost ETF can help build a portfolio that pays regularly. With a single investment, you get to own the biggest companies and enjoy passive income which is why it should be a core holding. In the long term, SCHD’s performance will continue as it has done in the past. The post Here is Why Everyone Should Own Schwab’s SCHD ETF appeared first on 24/7 Wall St..
Top 3 reasons to buy the SCHD ETF in April
The Schwab US Dividend Equity (SCHD) ETF has remained in a tight range this year as investors rotated from growth stocks to value ones as risks rose. The SCHD ETF was trading at $28 on Monday, a few points above the year-to-date low of $26.6.
SCHD's 2025 Reconstitution: Dividend Growth Holds Strong Amid Economic Shifts
SCHD's 2025 reconstitution turned over 19.2% of the fund and began the year with a blistering 22% raise over Q1 2024. The fund's bold pivot, cutting Financials and doubling down on Energy and Consumer Staples, prepares it for macroeconomic shifts like rising unemployment, AI development, and tariff policies. Looking ahead, I see the reconstitution priming SCHD to continue delivering high dividend growth and competitive total returns in 2025, based on a detailed look at the top holdings.
March Madness: SCHD Dividend Bracketology (Part 1)
A bracket-style analysis of SCHD's 32 largest holdings. We pit dividend stocks against one another to find the best ones. Future articles will delve deeper into these stocks, aiming to crown the ultimate dividend champion within SCHD's universe.
