Powell Testimony Is Very Good News For SCHD
Earlier, I argued that SCHD approaches an inflection point, judging by its valuation gap relative to the broader equity market. Here, I will make the case from a different angle by examining its valuation gap relative to risk-free rates. SCHD's current yield spread relative to treasury rates is among the thinnest levels in at least a decade.
These 3 Dividend ETFs Are a Retiree's Best Friend
Schwab U.S. Dividend Equity ETF is a best-of-breed fund that mixes quality and yield. SPDR Portfolio S&P 500 High Dividend ETF is a simple-to-understand fund offering a generous yield.
SCHD: Key Data Suggests No Interest Rates Cut Soon
Key data suggests that the Fed does not need to cut interest rates in 2024, meaning there is a high probability that a rotation from growth to value may start. Stock seasonality analysis suggests that summer is traditionally a good time to start or accumulate a position in SCHD because it usually rallies during the October-December period. The market has been harshly punishing growth stocks during the Q1 earnings season for even slight misses against consensus, likely indicating that investors are nervous as expectations are high.
SCHD: Cult Status Aside, It's A Reasonable Hold
The Schwab U.S. Dividend Equity Fund ETF is a highly popular Exchange-Traded Fund. This has led to impressive AUM growth for Schwab's benefit. SCHD has underperformed other large dividend ETFs, but that's largely attributable to a lower technology sector weighting. I view the sector diversification positively. However, SCHD is highly concentrated compared to peers, so investors may wish to study the top ~dozen holdings in assessing whether this is the ETF for you.
SCHD: This Is Why I Have Turned Bullish Here As A High-Yield Investor
A while ago, I was relatively skeptical about SCHD and decided to avoid investing due to an elevated opportunity cost. Since the publication of that article, SCHD has decreased in price a bit, even though the underlying yield has improved. In this article, I share two aspects that have made me bullish on SCHD, even though I'm inherently biased toward high-yielding instruments.
An Important Warning For SCHD Investors
Schwab U.S. Dividend Equity ETF™ is a low-cost dividend ETF with a high yield and strong long-term performance, making it a suitable option for retirees seeking income. However, the SCHD ETF faces headwinds right now. We discuss what these are and encourage investors to make sure they are buying this ETF with eyes wide open.
SCHD: Don't Overthink The Buying Opportunity
SCHD is a high-quality ETF focused on sustainable dividend-paying companies. It is not directly comparable to the S&P 500. SCHD can offer investors diversification from the AI hype driving technology stocks in the S&P 500. SCHD's relatively strong 10Y total return profile underscores its quality and consistency.
SCHD: The Ultimate 'Sleep Well At Night' ETF
SCHD has been a popular dividend ETF, providing diversified holdings and solid total returns over the years. Recent market trends have led to underperformance for SCHD due to lack of exposure to technology and communication services sectors. Despite concerns about slowing dividend growth and lack of tech exposure, SCHD still offers high-quality dividend-paying companies and a sizable dividend yield.
SCHD: A No-Brainer ETF With A Growing 4% Yield
Schwab US Dividend Equity ETF is criticized for weaker performance and disappointing 4% dividend increase in 2023. Despite short-term disappointments, ETF's long-term focus on dividend growth remains strong. Recent performance dip should not discourage passive income investors, as ETF's dividends are expected to continue growing.
The Best Dividend ETF to Invest $1,000 in Right Now
The Schwab U.S. Dividend Equity ETF is focused on buying dividend stocks. This exchange-traded fund starts with dividend growers and then layers in quality screens.
SCHD: Time To Buy
SCHD is a high-quality dividend growth ETF that has lagged the market, making it more attractive on a relative basis. Over the last decade, SCHD grew its dividend by 124%, outpacing inflation and providing significant purchasing power gains. SCHD's focus on large-cap value stocks with low valuation ratios and high earnings growth makes it a great dividend growth pick.
SCHD Dividend History: Is Schwab Dividend ETF a Buy?
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.
