Schwab U.S. Dividend Equity ETF offers a compelling alternative to the S&P 500, emphasizing income, value, and broad sector diversification. SCHD delivers a 3.8% dividend yield, a 10.6% 10-year dividend CAGR, and a low 1-year beta of 0.44, supporting its 'sleep well at night' profile. Top holdings like MRK and CSCO provide undervalued dividend growth exposure, while the fund's sector mix reduces reliance on volatile mega-cap tech.
Investors love an ETF that offers a perfect balance between a good yield and some upside.
I am bullish on Schwab U.S. Dividend Equity ETF (SCHD) for its robust 9.15% dividend growth and compounding potential. SCHD's disciplined portfolio construction, sector caps, and focus on companies with 10+ years of dividend payments drive long-term income growth. Despite underperforming the S&P 500 and lower upfront yield than JEPI, SCHD's compounding delivers superior long-term income for patient investors.
The SCHD ETF brings decent yield and exposure to a diversified array of dividend growers. In contrast, the QQQI ETF pays frequent dividends and tempts investors with a huge annual yield.
The Schwab U.S. Dividend Equity ETF delivers a mix of yield, quality, and consistent dividend growth, making it ideal for a long-term passive income strategy. Its emphasis on durable, financially healthy companies helps maintain a dependable income stream.
Many dividend investors flock to the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) for its high yield and low expense ratio.
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The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is a popular income choice for retirees.
My 4-Factor Dividend Growth Portfolio, launched in November 2022, consistently outperforms SCHD, with a 14.78% annualized return versus SCHD's 7.34%. The strategy selects 20 stocks annually using free cash flow to debt, 5-year dividend growth, ROIC, and forward yield from a high-quality, growth-focused universe. Recent modifications incorporating expected rate of return as a filter have yielded mixed results, with some months outperforming and others lagging the original method.
Following the 2025 reconstitution, Schwab U.S. Dividend Equity ETF (SCHD) now has its largest sector exposure in Energy at 19.3%. Heavy energy weighting has dragged SCHD's performance YTD and may continue to do so amid oil price uncertainties. These uncertainties include OPEC+ production, Russian supply, and most importantly, China's demand.
Schwab U.S. Dividend Equity ETF remains a Strong Buy, offering defensive exposure amid peak AI optimism and muted tech stock reactions. SCHD's portfolio emphasizes dividend yield and growth, with defensive sector allocations providing diversification from potential AI-related risks. Despite underperformance versus tech-heavy peers due to limited tech and high energy exposure, SCHD outperformed the S&P 500 recently as sentiment shifted.
Schwab U.S. Dividend Equity ETF is a buy, offering superior dividend growth, sustainability, and value versus peers VYM and DGRO. SCHD's top holdings, including Merck and Amgen, combine strong profitability, sustainable payout ratios, and attractive valuations, supporting continued dividend growth. SCHD's 3.75% yield, low 0.06% expense ratio, and value metrics position it for outperformance as interest rates on cash accounts decline.