Let's see why SCHD is doing a 3-for-1 stock split.
My strategy aims for $50,000 annual portfolio income in 10 years by investing in 5-8% yielding, inflation-protected securities with low financial risk. While the typical instruments to accommodate this objective are pure value stocks that lie in BDC, MLP and REIT segments, SCHD is a clear exception. In this article I elaborate on why I have included SCHD in my portfolio and why, in my opinion, it deserves a place in most retirement income seeking portfolios.
If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Schwab U.S. Dividend Equity ETF (SCHD), a passively managed exchange traded fund launched on 10/20/2011.
The Schwab U.S. Dividend Equity ETF (NYSE ARCA: SCHD) is a exchange-traded fund that tracks the total return of the Dow Jones Dividend 100 Index.
Schwab Asset Management announced 3-1 share splits for 20 ETFs, including SCHD, making it easier for investors to purchase shares. SCHD offers a diversified portfolio with a 3.4% dividend yield and 12% five-year dividend growth, making it a strong complement to tech-heavy portfolios. SCHD's top 10 holdings, including Home Depot and Verizon, are high-quality companies, though some are currently overvalued based on forward P/E ratios.
Retiring with dividends provides steady cash flow, reducing market volatility concerns and allowing retirees to enjoy life without selling shares. Schwab U.S. Dividend Equity ETF™ is an excellent dividend fund for retirees. Strategically combining it with several high yields enables retirees to live off growing passive income while maintaining diversification.
Investing in the stock market has been the surest way to build wealth over time. Year-to-year, however, there are numerous ups and downs.
Schwab U.S. Dividend Equity ETF holds 100 top dividend stocks. Its holdings tend to pay higher-yielding dividends that steadily increase.
SCHD and SPYD are 2 of several viable dividend-focused ETFs. However, there is a sea-change in the stock market that in future years could disappoint and even frustrate income-seeking, risk-aware investors. I compare these 2, then discuss their "common enemies" to start this conversation.
The Schwab U.S. Dividend Equity ETF offers a yield that's more than double that of the S&P 500 index. The exchange-traded fund first singles out reliable dividend-paying stocks.
The Schwab U.S. Dividend Equity ETF is a safe harbor investment focused on diversification and income generation. Despite short-term underperformance due to less IT exposure, SCHD has strong long-term returns. The recent Federal Reserve rate cut may increase market volatility, but SCHD's defensive sector investments can help mitigate risks.
Schwab U.S. Dividend Equity ETF has been able to offer a steadily growing payout to investors over the years with a higher relative yield. Rate cuts by the Fed could benefit SCHD, making it appealing for dividend growth investors seeking diversification from tech-heavy indices. We've been able to write puts consistently this year and bring in option 'income' nearly every month of 2024, with the 'risk' of maybe ending up with a long(er) position.