SCHD: An Outperformance Candidate For 2026
The Schwab U.S. Dividend Equity ETF stands out for 2026, offering high yield and robust dividend growth potential as rates decline. I expect SCHD to rebalance, reducing financials and energy exposure and increasing weight in value-oriented sectors like telecom, utilities, and healthcare. Falling interest rates should widen the yield gap, driving capital flows into yield-focused ETFs like SCHD and enhancing their investment appeal.
Buying SCHD Is An Awful Way To Start The New Year
Schwab U.S. Dividend Equity ETF (SCHD) is reaffirmed as a 'sell' due to persistent underperformance versus major indices. SCHD's 3.79% yield and portfolio concentration in large, stable dividend payers have not translated into competitive total returns. Since September 2023, SCHD's 21% total return has lagged the S&P 500 (54.56%) and NASDAQ (67.71%), highlighting structural underperformance.
SCHD: Coming Redemption Year; 2026 Could Favor Dividend Discipline
The Schwab U.S. Dividend Equity ETF remains a Buy, offering defensive positioning amid high S&P 500 valuations and potential growth-to-value rotation in 2026. SCHD's 20% energy sector exposure, including Chevron and ConocoPhillips, is supported by robust earnings and sector undervaluation despite weak oil prices. Healthcare holdings (>16% of SCHD), such as BMY, MRK, and ABBV, are regaining momentum with strong free cash flow and resilient capital allocation.
2 Top High-Yielding Dividend ETFs to Buy for 2026
Dividend investing is an important part of a long-term strategy for income investors. The SPDR Portfolio S&P 500 High Dividend ETF offers investors exposure to sectors ranging from real estate to financials.
SCHD's Dividend Growth Formula Is Broken (For Now)
Schwab U.S. Dividend Equity ETF's dividend growth has been rather disappointing lately. Recent reconstitutions have purged SCHD of outperformers and increased exposure to underperforming sectors. Is this just a temporary issue, or should you sell before fundamentals deteriorate even further?
SCHD: Far Cheaper Than The U.S. Market
SCHD is one of the most popular dividend funds in the world. It does not have a particularly high yield, but it does have many quality dividend growers in its portfolio. It also trades at relatively low multiples. The broader markets, on the other hand, are very pricey.
The Best Dividend ETF to Buy: SCHD Pays a High Yield While VIG Focuses on Dividend Growth
The Vanguard Dividend Appreciation ETF and the Schwab U.S. Dividend Equity ETF Income are among the top dividend ETFs to earn years of passive income. SCHD offers a much higher dividend yield but trails VIG in recent total returns.
SCHD Over SDY: Fundamental Quality Beats Dividend Aristocracy
I rate Schwab U.S. Dividend Equity ETF (SCHD) a buy and State Street® SPDR® S&P® Dividend ETF (SDY) a hold, favoring SCHD's quality-driven strategy. SCHD offers higher dividend yield (3.80%), lower P/E (13.50x), and lower fees (0.06%) than SDY's 2.58% yield, 17.27x P/E, and 0.35% expense ratio. SCHD's portfolio emphasizes quality screens and conviction, while SDY relies on backward-looking dividend track records, resulting in crowded trades and higher valuations.
SCHD: Tired Of AI? I Want Cash In 2026
Schwab U.S. Dividend Equity ETF (SCHD) offers a compelling alternative as the AI trade becomes crowded and valuations reflect high expectations. SCHD targets profitable, shareholder-friendly companies with strong balance sheets and reliable dividends, providing stability amid market uncertainty. In 2026, SCHD's 3.7% yield, sector diversification, and low technology exposure can balance portfolios dominated by volatile growth or AI names.
SCHD: This ETF Stinks
Schwab U.S. Dividend Equity ETF (SCHD) receives a lot of flack, with constant assertions of underperformance and better alternatives. SCHD underperforms broad indices recently, primarily due to AI-driven market moves and sector allocations. Current top holdings are heavily weighted in biotech/pharma, with sector concentration shifting annually via index reconstitution and rebalancing.
Should Schwab U.S. Dividend Equity ETF (SCHD) Be on Your Investing Radar?
Launched on October 20, 2011, the Schwab U.S. Dividend Equity ETF (SCHD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
SCHD: Dividend Yield Disadvantage
Schwab U.S. Dividend Equity ETF (SCHD) remains rated 'Sell' due to unattractive risk-reward versus Treasuries and sector headwinds. SCHD's 3.8% forward yield is less compelling with the Fed projecting only one 25-bps rate cut in 2026, keeping risk-free rates elevated. Overweight exposure to Energy sector is a concern given structural pressures and tepid 2026 outlook.
