Move Over SCHD: 2 Game-Changing High-Yield ETFs Investors Can't Ignore
SCHD remains a gold-standard dividend ETF, but has seen its growth prospects decline. Income growth potential dropped from 13%-14% to 8%-9%. SCHD's portfolio growth consensus has fallen 50% to 66% in the last few years, and its rules-based portfolio design will not likely improve. Combining the JPMorgan Equity Premium ETF and VictoryShares Free Cash Flow Yield ETF offers a superior alternative with a 4.6% yield and 13%- 14% income growth.
Allocating $50K In A Dividend Portfolio: Enhancing SCHD With 10 High-Yield Picks
Despite its effective combination of dividend income and dividend growth, Schwab U.S. Dividend Equity ETF™ has some weaknesses, such as its reduced level of diversification, indicated by its limited exposure to some sectors. I will address these weaknesses by demonstrating how to build a $50,000 dividend portfolio by enhancing SCHD with November's top 10 high dividend yield companies. The Weighted Average Dividend Yield [FWD] of this dividend portfolio stands at 4.32%, and its 5-Year Weighted Average Dividend Growth Rate [CAGR] at 9.02%, mixing income and growth potential.
SCHD: Doesn't Deserve The Flack, Doing What It Should
SCHD is a misunderstood ETF, and still excels in providing reliable dividend income and capital appreciation. SCHD's stock selection prioritizes companies with strong financial metrics, ensuring sustainable and growing dividends, despite recent underperformance due to unique market conditions. Comparing SCHD to VYM, SCHD shows superior long-term capital growth and risk-adjusted returns, though VYM had an exceptional year in 2024.
Very bad news for the popular SCHD ETF
The Schwab US Dividend Equity ETF (SCHD) has done well this year and is hovering near its all-time high of $29.33. It has risen by 16.2% in 2024, underperforming the S&P 500 index, which has risen by over 25% this year.
6 Exchange Traded Funds for Every Investor
ETFs can add stability and build wealth
3 Stress Free Dividend-Focused ETFs
Diversification is crucial for long-term wealth, and ETFs offer an easy way to achieve it, especially dividend-focused ETFs like SCHD, VIG, and VYM. SCHD is a versatile ETF with strong dividend growth, a 3.4% yield, and broad sector exposure, making it a great portfolio complement. VIG targets companies with consistent dividend growth, boasting a 1.7% yield and a 10% five-year dividend growth rate, heavily weighted in technology.
Want Decades of Passive Income? Buy This Index Fund and Hold It Forever
This fund could be the perfect investment for those wanting financial freedom through endlessly growing dividends.
SCHD Vs. SCHH: REIT Is SCHD's Achilles Heel
This article downgrades SCHD to HOLD and reiterates my BUY rating on SCHH due to changes in interest rates and future rate outlook. Due to recent rate cuts, the REIT sector is one of the most attractively valued sectors on our Market Sector Dashboard. SCHD is a solid candidate in this expensive market, with high-quality holdings and reasonable valuation.
The Best High-Yield Dividend ETF to Invest $1,000 in Right Now
If you are looking to get into dividend stocks, one of the best choices right now is the Schwab US Dividend Equity ETF.
3 Reasons Why I'm Adding More SCHD to My Portfolio Right Now
Investors looking to add exposure to top exchange traded funds (ETFs) in the market certainly have plenty of options to choose from.
SCHD Vs. SCHH: Complementary ETFs, But You Can Do Better
SCHD has one flaw. It has no exposure to real estate. SCHH can fill this void, but it also some issues.
SCHD: Stronghold Amid Growth Chaos
Current market conditions, including a high average P/E ratio and weak performance of major tech stocks, suggest a potential correction in growth stocks. The Schwab U.S. Dividend Equity ETF offers a compelling investment opportunity due to its low exposure to the Technology sector and a higher dividend yield compared to its peers. Beyond its dividend yield, SCHD has demonstrated significant stock price appreciation over the past decade, providing a balanced investment option.
