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.
This Top Dividend ETF Loves These Leading Oil Stocks. Should You Buy Them, Too?
The Schwab U.S. Dividend Equity ETF (SCHD -0.63%) is a popular exchange-traded fund (ETF) among dividend investors. It holds 100 of the highest-quality dividend stocks and tracks an index ( Dow Jones U.S. Dividend 100 Index ) that screens companies based on the quality of their dividends.
SCHD: It Is No Longer Just About Income And Growth, But Also About Alpha
SCHD is a solid instrument for prudent income-investors to diversify their current income streams. The core investment case of SCHD is related to an acceptable initial yield and around double digit dividend growth rate. Yet, in the current market environment SCHD has become an even more attractive dividend paying vehicle.
5 High-Quality Dividend Growth Stocks I'm Buying Now (Plus SCHD Reconstitution)
My dividend growth portfolio is outperforming the S&P 500 this year, yielding over 5%, despite a three-year period of underperformance from 2022-2024. The recent surge in gold prices is driven by fiscal and monetary policy excesses, inflation fears, and geopolitical risks, but I prefer dividend-paying investments. The new 25% auto tariffs will likely increase car prices and hurt US carmakers' exports, making auto parts stocks like GPC more attractive.
SCHD: Data Center Oversupply Risk Joins Geopolitical And Monetary Uncertainty
A massive geopolitical uncertainty combined with higher interest rates and data center oversupply risks looks like a perfect combo for high-quality dividend machines like SCHD. SCHD, managed by Charles Schwab, invests in defensive sectors, providing a balanced, high-yielding, and growth-oriented dividend portfolio. SCHD's best-in-class dividend yield and growth make it a STRONG BUY in the current volatile environment.
How to Earn $100,000 in Dividend Income
Dividend investing is a process. It's not about the first year's dividend income; it's about 10 years out and more, when you really start to see the compounding process at work.
