SCHD is a popular ETF for dividend growth investors, offering a low expense ratio, attractive yield, and a history of solid performance. The ETF's quarterly rebalancing can be a double-edged sword, often selling high-performing stocks like Microsoft and Exxon Mobil too early. Despite its strengths, I prefer using SCHD for idea generation, focusing on a buy-and-hold strategy to let winners ride.
The S&P 500 index currently yields a tiny 1.2%. You can get roughly three times the yield if you buy the Schwab U.S. Dividend Equity ETF (SCHD -0.69%).
Investing in the stock market may not seem like a great idea these days given how expensive many stocks are and the uncertainty around the economy. But even if individual stocks don't look terribly tempting to you, one option to consider may be some exchange-traded funds (ETFs).
The Schwab US Dividend Equity ETF (SCHD) is hovering near its all-time high as the earnings season takes shape. SCHD was trading at $27.95 on Thursday, a few points below its all-time high of $29.45.
The Schwab U.S. Dividend Equity ETF (SCHD) was launched on 10/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
There is a huge temptation for income-focused investors to buy the highest-yielding stocks in an effort to boost the cash they generate from their portfolios. Anyone who has done this likely knows that buying based on yield alone can end up with you buying poorly run companies and result in diminished returns through often painful dividend cuts.
SCHD is a strong buy due to its high dividend yield and growth, especially amid market panic over Chinese AI threats and tech stock volatility. SCHD outperforms rivals VIG and VYM in liquidity, dividend yield, and growth, making it a superior choice in the current uncertain market. Despite higher concentration risks, SCHD's technical setup shows bullish momentum, indicating positive short-term sentiment and potential for continued upward movement.
Dividend stocks make great long-term investments. For example, an investor who bought $100 worth of average dividend stocks in 1973 would have seen that investment grow to over $8,700 as of the end of 2023, according to a study from Hartford Funds and Ned Davis Research.
I discuss my use of the Schwab U.S. Dividend Equity ETF™ for planning early retirement, weighing the merits of total returns versus dividend yields. Historical data shows dividend stocks like those in the SCHD ETF typically underperform the broader market, but I argue the trade-off is worth it for income reliability. My goal is to increase my dividend stock exposure to 50% of my portfolio to cover half my living expenses, accepting lower total returns for income stability.
The Schwab U.S. Dividend Equity ETF offers automatic diversification, income, and growth with a 3.5% dividend yield and low 0.06% expense ratio. SCHD's diversified portfolio of 103 holdings includes top dividend growth names like Pfizer, Coca-Cola, and AbbVie, well-positioned for long-term returns. With a strong dividend growth history and defensive sector focus, SCHD is ideal for dollar-cost averaging, especially in uncertain market environments.
Even though the Schwab U.S. Dividend Equity ETF offers investors an attractive blend of dividend income and dividend growth, a reduced level of diversification can be noted. Today's article aims to reduce the ETF's weaknesses by enhancing it with January 2025's top 10 high dividend yield companies and 5 individually selected dividend growth companies. I will show you how to allocate the amount of $100,000 across SCHD and these 15 individually selected companies to increase your portfolio's level of diversification.
The Schwab US Dividend Equity (SCHD) ETF has done well in the past decade as it became one of the biggest dividend and sleep-well-at-night (SWAN) funds. It has soared by over 400% since its inception in 2012 and generated more total returns than other funds.