3 Upcoming Dividend Increases
I focus on companies with a strong track record of dividend growth, using data from Dividend Champions and NASDAQ to identify reliable opportunities. This week's highlighted stocks average a 7.3% dividend increase and 11-year streaks, with NDAQ and HWBK outperforming the SCHD benchmark over ten years. My investment strategy prioritizes stocks with significant alpha over SCHD, strong earnings, and consistent dividend growth, not just marginal outperformance.
SCHD ETF Alternative Strategy: Cruising Along With A 15.32% CAGR
My 4-Factor Dividend Growth Strategy, launched in November 2022, customizes SCHD's stock selection for a more growth-oriented investment style. Following a 3.19% gain in May, the portfolio's long-term CAGR remains strong at 15.32%, outperforming SCHD but trailing the S&P 500. The portfolio's forward dividend yield decreased to 2.28%, as a result of positive capital appreciation.
SCHD: The Q1 Earnings Season Sends Mixed Signals
Given the uncertain environment, I continue to accumulate Schwab U.S. Dividend Equity ETF™, balancing my AI optimism with a need for defensive positioning. The market's aggressive risk appetite overlooks ongoing macro uncertainties, making a defensive allocation like SCHD increasingly prudent. SCHD isn't immune to market panic and has notable exposure to volatile energy prices, but its dividend consistency remains a key strength.
SCHD: A Great Defensive Way To Generate Income
SCHD offers a compelling combination of low fees, high dividend yield, and attractive valuation compared to broader market ETFs like SPY. The ETF is concentrated in value and defensive sectors, making it less diversified but more resilient and income-focused than peers such as VYM and DGRO. Despite lagging in recent total returns, SCHD's lower drawdown and higher yield make it appealing for conservative, income-oriented investors.
Let's Get Real: SCHD Has Been A Chronic Underperformer
SCHD's 3.9% yield is attractive, but total return performance has lagged broad market ETFs like SPY and VTI over most timeframes. The fund's high concentration in its top holdings increases risk, where underperformance by a few names can drag down overall returns. SCHD has not been tested in a prolonged recession. High-yielding stocks often see dividends cut and share prices fall in such an environment.
SCHD: A Strong Option For Income-Focused Portfolio
SCHD offers a diversified, large-cap U.S. dividend portfolio with a 3.9% yield, low 0.06% expense ratio, and moderate valuation. While SCHD has underperformed the S&P 500 over 3, 5, and 10 years, it provides some downside protection and steady income. SCHD is ideal for investors seeking reliable dividend growth and portfolio defensiveness, especially as a complement to growth stocks.
SCHD: Addressing A Pathetic Rally
Schwab U.S. Dividend Equity ETF™ has lagged the broader market rally and investors want anshwers. An explanation of the muted rally is offered. SCHD remains a conservative, diversified choice for stable, reliable, and growing dividends, but shouldn't be your only ETF, especially for younger or growth-focused investors.
VDY: This Canadian Dividend ETF Is Leaving SCHD In The Dust
Under current Trump administration policies, VDY ETF offers a compelling total return opportunity due to strength in the Canadian dollar combined with U.S. dollar weakness. VDY's top holdings are concentrated in the Canadian Financials & Energy sectors, with Royal Bank of Canada, Enbridge, and Canadian Natural Resources in the portfolio. Canadian dividend yields are now more valuable for U.S. investors, contributing to VDY's ~14%+ out-performance versus SCHD over the past year.
Buy Schwab SCHD For The Diversification But Love It For the Dividend
You don't have to pick individual stocks to grow your money.
SCHD: Everything You Need To Know About This World Class Dividend ETF
The Schwab U.S. Dividend Equity ETF is a high-quality, cost-efficient dividend-focused ETF with a low expense ratio of 0.06% and a strong track record of dividend growth. Ideal for investors seeking consistent, reliable, and growing income, especially those nearing or at retirement age due to its superior dividend growth. SCHD's strategy focuses on high dividend-yielding stocks with strong financials, excluding rapid growth tech companies, making it a stable but lower total return option.
Strategically Building A $500,000 Dividend Portfolio: Boosting SCHD's Income With May's High-Yield Picks
The Schwab U.S. Dividend Equity ETF has high allocations to the Consumer Staples, Energy, and Health Care Sectors but lacks diversification in Materials, Utilities, and Real Estate Sectors. To enhance diversification, I added Cohen & Steers Quality Income Realty Fund and JPMorgan Nasdaq Equity Premium Income ETF, focusing on the Real Estate and Technology Sectors respectively. The portfolio's Weighted Average Dividend Yield [TTM] is 6.09%, with a 5-Year Weighted Average Dividend Growth Rate of 6.72%, projecting significant future income for investors.
SCHD: There Are Better Flight To Safety Plays Out There
SCHD has become a popular ETF because its energy and consumer staple dividend stocks are seen as relatively safe, amid the current market uncertainty. Unfortunately, the perception here is largely incorrect. SCHD's energy stocks import oil from Canada, and consumer staples in general are heavily involved in importing and exporting. Foreign stocks and financials are more interesting right now than U.S. consumer staples.
