2 Reasons Why I'm Buying SCHD Over S&P 500
The S&P 500 is overvalued and concentrated. SCHD offers a favorable alternative with a 3.55% dividend yield, focusing on value stocks and dividend growers, which are better suited for the current high-yield environment. Value stocks in SCHD are historically cheap relative to growth stocks, making them attractive, especially given the current interest rate landscape.
SCHD: A Great Way To Miss Out On Wealth Accumulation
I strongly advise against investing in the Schwab U.S. Dividend Equity ETF due to its consistent underperformance compared to broader market indices. Despite its focus on high dividend-yielding, financially sturdy stocks, SCHD's returns have lagged behind the S&P 500, NASDAQ, and Dow Jones Industrial Average. Alternative portfolios, including individual high-yield stocks like AT&T and Truist Financial, offer better returns and higher yields than SCHD.
SCHD Vs. VYM: This Chart Shows It's Time To Buy SCHD
The higher-for-longer rate scenario has pressured the valuation of dividend stocks due to their bond-proxy flavor. However, the pressure is not felt evenly between SCHD and VYM. SCHD's yield spread over VYM is at a decade high, signaling an undervaluation and prompting an upgrade to Buy for SCHD.
SCHD: 3 Reasons It Likely Underperforms
SCHD faces tax inefficiencies due to double taxation on dividends, reducing overall returns compared to tax-deferred capital gains strategies. SCHD is structurally underweight in AI, missing out on significant long-term growth opportunities from transformative technologies and sectors. Focusing on energy and not utilities may be a mistake, in light of AI's secondary impacts on energy infrastructure development.
2 High-Yield Dividend ETFs to Buy to Generate Passive Income
It can be a little dispiriting to be a dividend investor today, given that the S&P 500 index (^GSPC -1.54%) has a tiny 1.2% yield. That, however, doesn't mean you can't find simple ways to boost the income your portfolio generates.
Buy The Dip: SCHD's Top Holdings Show That It Is Way Too Cheap
SCHD has pulled back sharply recently. When looking at its top holdings, SCHD looks like a clear buy. We provide a look at each of its top 10 holdings and show why we think they make SCHD an attractive buy right now.
SCHD: Why I Am Aggressively Buying The Drop
The Schwab U.S. Dividend Equity ETF is a reliable investment with average annual returns approaching 14% annually since 2011. I recommended SCHD in September due to its attractive value for dividend investors; despite recent drops, it remains a strong investment solution for investors that want to generate income. SCHD has a strong long-term return profile, steady distributions, and potential for capital appreciation. The ETF is well-diversified, defensively-positioned and has achieved considerable NAV growth in the last 5 years.
Is the Schwab U.S. Dividend Equity ETF a Dividend ETF Still Worth Buying in 2025?
In this video, I will talk about the Schwab U.S. Dividend Equity ETF (SCHD 0.66%) and whether this could be a great pick for dividend investors in 2025. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Time to Dump or Double Up on SCHD?
With shares of the popular dividend exchange-traded fund (ETF) Schwab US Dividend Equity ETF (SCHD 0.66%), investors are wondering whether it is time to dump the ETF or double up. In today's video, I will explain the pros and cons of the ETF and look at analyst expectations for the top 10 holdings, which include the likes of Pfizer (PFE -0.07%), Coca-Cola (KO -0.15%), and AbbVie (ABBV 0.99%).
SCHD Investors At Risk Of Falling Short Again In 2025
I am bearish on Schwab U.S. Dividend Equity ETF for 2025 due to the ETF's poor positioning to capitalize on tech and AI growth drivers. SCHD's top 10 holdings posted a weak 3% revenue growth in 2024, compared to 24.1% for the S&P 500's top 10 holdings. Analyst consensus estimates suggest this performance gap will persist in 2025, with SCHD's top 10 holdings expected to grow revenues by only 5%.
Top Dividend Stocks to Buy Now as Bond Yields Could Lower
The concept of market relativity is more alive than ever in today's economy, as gone are the days of individualistic price action in different asset classes and even stocks. With the advances in data delivery and technology, traders across the financial sector have found ways to connect the dots in pretty much all markets, and that is the one thing that these big hedge funds and investment bank traders get right.
Is the Schwab U.S. Dividend Equity ETF a Millionaire Maker?
Virtually every investor wants to build wealth, but there are countless roads to this destination. When discussing potential millionaire-making investments, it often boils down to how likely they are to get you where you want to go and how long it will take.
