SCHD can be a crucial strategic core position of a dividend portfolio to integrate dividend income and dividend growth effectively. However, the ETF has some weaknesses, such as the underrepresentation of companies in the real estate, materials, and utilities sectors. This article demonstrates how to invest $25,000 in a dividend portfolio by enhancing SCHD with October's top 10 high dividend yield companies and five selected dividend growth companies.
SCHD has outperformed the S&P 500 recently, with a 9% return in the past three months. Looking ahead, I see good odds for the outperformance to continue. The recent 3-to-1 split can provide a strong near-term return catalyst for SCHD.
This fund makes it easy to make dividend income.
ETFs are useful for gaining exposure to unfamiliar asset classes, as suggested by Warren Buffett with S&P 500 ETFs. The Schwab US Dividend ETF underperforms compared to the S&P 500 over various time frames, making it a less favorable choice. But dividend investors need income. A DIY approach can give you that.
Schwab Asset Management executed stock splits for 20 ETFs, with October 11th being the first day each ETF is trading at its split-adjusted price.
The Schwab U.S. Dividend Equity ETF is a solid choice for dividend investors but has underperformed the tech-heavy S&P 500 since 2020. I recommend iShares Core MSCI US Quality Dividend Index ETF for 2024 due to its superior lower volatility and sector concentration in defensive stocks like consumer staples, healthcare, and utilities. XDU's financial screens and sector arrangement offer better risk-adjusted returns, perhaps making it ideal for the lower inflation, deflationary environment.
Rising oil prices and potential Fed hawkishness favor defensive sectors, with SCHD's Energy holdings like Chevron poised to benefit. SCHD outperforms peers like VYM and VIG in dividend growth and yield, making it a superior dividend machine. Despite potential tech sector resilience, SCHD's historical performance and favorable seasonality patterns support continued bullish sentiment.
Here's how to build passive income and grow your wealth.
In today's uncertain markets, investors increasingly turn to dividend-paying stocks as a reliable strategy for generating passive income and enhancing portfolio stability. Schwab US Dividend Equity ETF SCHD stands out because it consistently delivers strong returns, outperforming the S&P 500 for the past five years.
In today's uncertain markets, investors increasingly turn to dividend-paying stocks as a reliable strategy for generating passive income and enhancing portfolio stability. Schwab US Dividend Equity ETF NYSEARCA: SCHD stands out because it consistently delivers strong returns, outperforming the S&P 500 for the past five years.
SCHD has outperformed the S&P 500 recently as income investors likely reallocated from cash. A more dovish Fed is expected to underpin SCHD's bullish thesis and justify its recent surge to new highs. SCHD's valuation is still relatively attractive, corroborating its uptrend continuation thesis.
SCHD is a top dividend ETF choice due to its 3.5% forward yield, 12% CAGR over five years, and lower exposure to Technology. With increasing recession fears and peak optimism around growth stocks, SCHD offers a safer investment with strong dividend growth. SCHD's quarterly dividend of $0.7545 represents a 15.3% YoY growth, making it a compelling safe-haven opportunity.