SCHD is a "Strong buy" in the current fragile environment due to its perfect balance of dividend yield and growth. Growth stocks face headwinds from peak optimism, geopolitical risks, and inflation, making SCHD a safer investment. SCHD's main rivals, VIG and VYM, have less defensive sector exposure and weaker dividend scorecards.
My goal is to use dividend income to supplement or fully support my cost of living, a common aspiration among investors. SCHD's stock selection process ensures a combination of a solid starting yield and strong dividend growth (13.03% CAGR since 2018). Historical data suggests dividend growth stocks, including SCHD's underlying index, tend to outperform over longer periods—especially in bear markets.
Schwab U.S. Dividend Equity ETF (SCHD 0.67%) has a unique approach to stock selection, and in some ways, it feels like it is more than just a simple index fund. That, however, is not the case, since it basically tracks the Dow Jones U.S. Dividend 100 Index.
SCHD's excess CAPE yield relative to SPY is at the highest level in at least a decade. This is a strong – and more reliable - signal in my view that SCHD's yield is too cheaply valued when benchmarked against the overall equity market. It also prompts me to upgrade SCHD to a strong buy rating.
Building A $100,000 Dividend Portfolio: Enhancing SCHD's Income With High-Yield Stocks
If you're building out your first portfolio, having most of that in a low-cost exchange-traded fund (ETF) is a good idea.
SCHD hasn't climbed back to its highs although the S&P 500 recovered to re-test recent highs last week. Is something amiss? Rising long-term yields and competitive fixed income yields could have played a role here, affecting buying sentiment. Still SCHD's relatively low P/E and sound construction methodology suggest the companies under the hood remain high quality.
Forget SCHD: These Big Dividends Offer Higher Yields And Faster Growth
Who doesn't want passive income? Even Warren Buffett has extolled it, reportedly saying, "If you don't find a way to make money while you sleep, you will work until you die.
The Schwab US Dividend Equity ETF (SCHD) has become a giant $68 billion behemoth, highly popular among dividend-seeking investors, especially retirees. It is a five-star rated fund with a strong record of dividend distributions and growth.
The Schwab U.S. Dividend Equity ETF™ is ideal for conservative, long-term investors seeking stable returns and growing dividends, despite being less exciting than other options. The SCHD ETF tracks the Dow Jones 100 Dividend Index, ensuring effective exposure to high-quality, dividend-growing stocks, and undergoes annual reconstitution for optimal performance. Top holdings like Coca-Cola, AbbVie, and Amgen offer strong dividend growth and stability, making the ETF a reliable choice for retirement portfolios.
SCHD needs little introduction. It's a $68 billion ETF with a 0.06% expense ratio, a 3.57% trailing dividend yield, and an 11.59% five-year dividend growth rate. These high-level statistics are easily retrievable on SCHD's quote page, but this article aims to enhance your understanding of the fund by providing unique insights on its fundamentals. Divided into four sections, this article covers SCHD's overlap with large-cap ETFs, its compelling factor mix, a company-level comparison with four peers, and a preview for the March 2025 reconstitution.