High-quality dividend stocks can form the bedrock of your portfolio. Globalizing your investments could boost your gains and reduce risk.
The Schwab U.S. Dividend Equity ETF has a generous 3.4% dividend yield. The exchange-traded fund's focus is on providing a mixture of income and quality.
I will demonstrate how you could build a dividend portfolio with SCHD as a core position and by incorporating 10 individual companies around this ETF. This dividend portfolio offers investors benefits when compared to only investing in SCHD: a stronger ability for dividend income generation, a broader sector diversification, and reduced company-specific allocation risk. By incorporating high dividend yield companies, we increase the portfolio's Weighted Average Dividend Yield, providing us with a superior income generation compared to solely investing in SCHD.
SCHD is a crowd-favorite dividend ETF. But it has an Achilles heel. SCHD's top 10 holdings are high-quality dividend stocks.
SCHD is one of the best all-around dividend ETFs.
I love investing in ETFs and will highlight two of the most popular ETFs. SCHD, the Schwab U.S. Dividend Equity ETF, has consistently outperformed the S&P 500, offering a solid dividend yield and growth, making it a great compliment to tech-heavy investments. SCHG, the Schwab U.S. Large-Cap Growth ETF, focuses on growth with heavy exposure to technology and communication services, offering a lower expense ratio compared to QQQ.
This extraordinary dividend ETF gives investors easy diversification and protection from the dreaded yield traps. It delivers a market-beating yield and double-digit dividend growth.
SCHD has a 3.80% expected dividend yield, trades at 14.95x forward earnings, and is consistently one of the highest-quality large-cap value funds on the market. However, it's struggled lately as the earnings growth rates of its 99 holdings plummeted to -10.95% over the last year. For next year, analysts expect another 1% decline. As a result, dividend payout ratios suffer. SCHD is the only ETF in a ten-fund sample whose constituents have higher payout ratios than their four-year averages.
Focusing on dividends could allow you to enjoy extra retirement income without having to sell any stocks. This ETF focuses on high-yield dividend payers with strong fundamentals.
SCHD is a dividend ETF that has been able to deliver some serious dividend growth with a CAGR of ~11% over 10 years. SCHD's value-oriented holdings helped it hold up better during the latest broader market volatility. This fund can help provide more diversification to a portfolio that may be leaning too heavily toward tech exposure.
Dividend funds have struggled over the past five years as tech companies continue to dominate, leaving many dividend-paying companies behind. SCHD follows the Dow Jones U.S. Dividend 100 Index, focusing on high dividend-paying U.S. companies with strong fundamentals. SCHD's dividend growth rate has outperformed competitors, averaging 11% per year over the past decade, making it a top performer in the high dividend segment.
On Tuesday, Schwab Asset Management released its latest bond offering, the Schwab Ultra-Short Income ETF (SCUS). According to Schwab Asset Management, the release of SCUS marks their first actively managed fixed income ETF to head to markets.