The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) are the two heavyweights of American dividend investing, and they take opposite approaches to the same goal.
Schwab U.S. Dividend Equity ETF (SCHD) is rated BUY, with a 7–10% total return expected over the next 6–12 months. Recent jobs and inflation data reduce rate-hike risks, supporting continued bullishness on SCHD despite its strong 31% one-year return. SCHD outperformed more tech-heavy peers, driven by healthcare and consumer defensive holdings, and now benefits from new growth drivers within top positions.
If you bought Schwab's dividend ETF instead of iShares' version a decade ago, the “quality” screen you paid for did something you were never told about: it filtered out a chunk of the winners.
The pitch for US dividend funds like theSchwab US Dividend Equity ETF (NYSEARCA:SCHD) has always leaned on quality, consistency, and a yield well above that of the S&P 500.
If you held Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) in a taxable brokerage account in 2024, you got an ugly surprise in the mail the following January: a 1099 showing distributions almost triple the normal quarterly amount.
For decades, the classic image of a dividend investor was someone who owned a carefully assembled collection of individual stocks: maybe 15 or 20 blue-chip names that had been chosen for their yield, history, and staying power.
Somewhere in the second decade of a $500 monthly deposit into the Schwab U.S.
The current market environment is fraught with risk and downside due to a variety of macro factors. Retaining diversified equity exposure in such an environment can be difficult when so many options remain significantly exposed to those risks. This article discusses why I think the Schwab US Dividend Equity ETF is currently one of the better ways to achieve equity exposure, especially over the medium term.
August is when serious investors reassess their core portfolio. Mid-year rebalancing conversations are back, the 10-year Treasury yield sits at 4.75%, and equity leadership is broadening beyond a handful of mega-caps.
The 4-Factor Dividend Growth Strategy, inspired by SCHD, targets high-quality, growth-oriented dividend stocks using four key metrics for selection. Since inception, the strategy has outperformed SCHD with a 12-month average total return of 18.65% versus SCHD's 12.80%, though recent periods show mixed relative performance. Monthly portfolio turnover is low, with an average of 2.87 stocks replaced, and the strategy maintains consistent quality and growth metrics across cycles.
The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) sells one number in bold: a 0.06% expense ratio.
Three funds dominate the conversation when U.S. investors build a dividend sleeve for retirement: Schwab U.S.