SCHD

Extension_Tutor9281

See most of my portfolio is focused on tech so I’m trying to just build more into ETFs and mutual funds that are equally balanced. Some are stock heavy right now I’m focusing on VOO, SPYG, SCHG, and then I’m working on snowballing SCHD and JEPQ

SufficientDrawing491

What you’re doing right is being to learn. For not just buy a low cost s&p 500 index, QQQM which is the NASDAQ, and a low cost total market index to hedge large cap/blue chip stocks. Some IQM, and VGT. Learn about getting what you can out of any 401k match lean harder towards a Roth 401k is possible. Max out a Roth IRA, and look into an HSA. Fidelity’s HSA is 100% investable. Calling the way build a dividend growth portfolio alongside your growth portfolio. I like DGRO, FDVV, SCHD, and DGRW.

volly1985

I’m sorry to say this, but I think the biggest risk in your life is the next time your family needs cash, not which type of IRA you need. The last time they took you $70k so I’m not sure why you think the next time will be only $5-6k. Stop hoping one day they’ll magically pay you back and start protecting the money you have left. Get out of that house and rent a room as close to work as you can comfortably afford. As for what you actually asked about — VOO/QQQM/SCHD is fine (the default youtuber recommendation). You should get your employer match in a 401k (or roth 401k if they offer it). Max out your personal roth IRA. And contribute to a taxable brokerage too. You’re sitting on a nice sum so you ultimately need to most of it invested in a taxable account (less ~6mo of what your new living expenses are after moving out).

Sorrywrongnumba69

well VOO and SCHD are not really high risk stocks the ETFs and pretty safe at that.

Objective_Plankton71

Leverage your investment with real estate. Buy three $600K condominiums in vacation areas with an eye towards short-term rentals, Airbnb, VRBO etc. 20% down payment for safety is $120,000 on each, so that's $360,000. I would plan on $30,000 to furnish all three, say Miami, Park City, Utah, and Honolulu. Plenty of available condominiums at $600,000 in those areas. Plan on professional property management. That would bring you four season unreasonably high rental income (not market). Then, with the other $100,000, just put it into a nice, safe ETF like JEPI, JEPQ, or SCHD. Your capital appreciation on the condominiums should be massive, even considering our current real estate market. The best time to get in was yesterday. The market for ultra-luxury vacations, or people that want to appear like they're taking luxury vacations, is not going anywhere. It's all about the gram.

Objective_Plankton71

ULTY is “Return of Capital Trash” Weekly distributions are not true yield: Most of what investors see as “income” is actually return of capital (ROC). They’re just handing back chunks of your principal, dressed up as a dividend. NAV erosion: Because the fund is bleeding itself with constant payouts, the net asset value (NAV) grinds down over time. Investors feel good getting weekly checks, but their underlying investment shrinks. Illusion of high yield: Quoting 120%+ TTM yield looks incredible, but it’s a shell game. Unless the fund is consistently outperforming the market (it isn’t), those yields are unsustainable. Expense drag: On top of that, ULTY charges ~1.3% expense ratio, which accelerates NAV decay. ⚠️ Real-World Impact If you held ULTY long-term, your “income” stream is offset by capital erosion. You’re eating your own seed corn: the fund pays you with your money, plus a bit of option premium, but long-term wealth doesn’t grow — it decays. ✅ Better Alternatives If you want actual yield instead of ROC gimmicks: JEPI / JEPQ – Covered-call ETFs that still retain NAV stability better, though capped upside. SCHD – Dividend growth ETF with lower yield, but real sustainable distributions. Laddered bonds / munis – Actual coupon income, not ROC.

OhioTag

Putting $500,000 USD into any boring ETF will dramatically make your life much easier. You could put it into SCHD or JEPQ and enjoy dividend income and taxes. You could put it into VOO or VDC. It isn't "never work again" money, but it is "make life dramatically easier" money.

xiongchiamiov

If it is important to you to do that $5 a day plan, then yes, don't use Schwab. >should I put $5 a day into my Schwab account until I can afford a full share, and continue that? I would opt for a plan that is fully automatic, so it continues no matter what is happening in your life. >I opened a Charles Schwab account Was this an IRA? Ref https://www.bogleheads.org/wiki/Prioritizing_investments >For an S&P I want VOO, for a dividend I want SCHD, and for growth I want QQQ. Fyi, although this sort of split is popular, it does not really make sense. Dividends [are not free money](https://www.investopedia.com/terms/d/dividendirrelevance.asp) and thus it doesn't make sense to consider them when investing in a tax-advantaged account. In a taxable account they're actively worse because your growth is subject to taxes, so it pulls down your longterm growth. QQQ selects only non-financial companies that choose to list on the nasdaq instead of the nyse. That has nothing to do with whether a company will do well. Typically folks are attempting to introduce a tech bias, which would be better accomplished via an actual tech fund (eg VGT). However, the way the stock market works you care not only about future prices but current prices, and tech companies are particularly expensive as a class. While I have you here, perhaps you'd consider diversifying outside the US? * https://www.bogleheads.org/forum/viewtopic.php?p=7374858&sid=f36f075d72830ae1e1f6b858ef3735d9#p7374858 * https://www.optimizedportfolio.com/international-stocks/ * https://www.reddit.com/r/Bogleheads/comments/1bgzg6w/vooavuv_and_chill_any_need_for_international (scroll down to the comment with a big list of links) * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406 And maybe consider some bonds? * https://www.whitecoatinvestor.com/in-defense-of-bonds/ * https://www.whitecoatinvestor.com/100-stock-portfolio/ * https://www.kitces.com/blog/stocks-for-the-long-run-siegal-mcquarrie-portfolio-investment-bonds-asset/

Trashcan_Johnson

How old are you? You really shouldn't be investing in SCHD if you're not near retirement, the dividends won't be the potential upside of a growth stock/etf. Might wanna switch that out for SCHG.

SirGlass

Just in investment $25 weekly or $50 biweekly. Investing $5 a day accomplishes nothing, you are just making things overly complicated for zero reason. SCHX is basically equivalent to VOO and it's $25 a share, or just use Schwab S&P500 index funds SWPPX. And probably just invest in the SCHX or swppx. They hold all the stocks that are in SCHD and QQQ. It holds both dividends and growth stocks . So then adding a dividend fund , and a growth fund really doesn't do much because all those stocks are inside SCHX or swppx anyway.

danedane98

Schwab vs. Fidelity Beginner Investor I’m looking to start investing in a few different things long term. For an S&P I want VOO, for a dividend I want SCHD, and for growth I want QQQ. I want to dollar cost average and don’t earn enough income to outright buy each share monthly, so I’m considering doing fractional shares. I opened a Charles Schwab account with the goal of investing $5 a day for each. I knew Schwab did stock slices, but didn’t realize they wouldn’t have either of these as an option to buy fractional shares from. With all that being said, I know Fidelity has more options to buy fractional shares. Would it make more sense for me to buy these fractional shares at $5 each day through Fidelity, or should I put $5 a day into my Schwab account until I can afford a full share, and continue that? I’m very new, so any other advice would be appreciated!

giraloco

That's not a diversified portfolio. You can lose big in a market crash. If it's in a retirement account you can rebalance without paying capital gains tax. This has nothing to do with timing the market, you need to start thinking in a more balanced portfolio that also includes significant cash to invest after the crash. I would add: Money Market, VTI, SCHD, ISHG, SCHF, BRK.B, MLPA Good luck! You will thank me.

OptionsJive

I sell monthly options on SCHD (30-60 DTE). Liquidity isn't perfect, but SCHD carries much lower risk than SPY since it's a lower-volatility product.

Comfortable_Sky_7837

It's ok. Breath take a deep breath and regroup. Stop taking home runs and start building long term. Look into investing and building a foundation. Looking into the magnificent 7 and xl sprds as your foundation. Once that is built Look into SCHD, QQQI, JEPQ and AGNC as low risk stable dividend stocks. When you are ready look into high risk dividend stocks such as BTCI, CVNY, MSTY, CONY. It's not the end of the world I promise just take a bit of time and you will get it back

OptionsJive

$SCHD

Beetlejuice_hero

Got assigned 100k worth of 460 BRK puts and looking good now. Also bought 1500 shares of SCHD which I like in a lower interest environment.

SirGlass

>, but the whole idea is that you don't sell any of the 30,000 shares of SCHD or whatever, and when the market comes back you're good as new. Once you'd sold off extra shares of SPY in a down market to fund living expenses, those extra shares that were liquidated are now gone from your portfolio. No this is bad math and not logical at all, Share count does not matter 100 $10 shares are the same as 10 $100 shares both are worth $1000 Dividend investors get hung up on share count, share count is meaningless . If a company splits their shares and 1 $500 share now becomes 5 $100 in a 1:5 split no value is created or lost even though your shares count went up 5X,. Now if you sell in a down market its much the same as collecting a dividend, you get cash and your equity holdings are reduced by either the amount of the dividend or the amount your sell If I have $ 1 million invested in stocks, if I collect a $50k dividends now I have 950k in stocks and 50k in cash If I sell 50k and collect no dividends well. I now have 950k is stocks and 50k in cash. Now you will tell me that my share count went down? So what shares are meaningless the value behind them the important things Either way I end up with the same out come , 950k in equity holdings and 50k in cash . If you agree that some 1:5 split does not create or destroy value but then you argue that actually share count does matter? If share count matters you would have to also argue that the 1:5 split somehow creates value because you get more shares.

bocageezer

I read it. What did I miss that you can explain in greater detail? Delete SCHD, add ADX, and then tell me if the “analysis” holds for TR. “… management are better at choosing how much of your investment to **sell and return**.” I hope OP doesn’t mean that literally. Regardless, I don’t have to sell any assets to fund my expenses, SPY or no SPY.

sharpetwo

Let me preface that I love EPD - low vol, high dividend, solid business model. It's indeed a good stock for the mantra "I do not mind owning the stock". I simply own it and do not even sell options on it. Now the problematic part your strategy is essentially selling convexity to fund carry which can become quickly an explosive cocktail. It looks attractive because the income snowballs: sell puts, buy yield, sell more puts, rinse and repeat. But in reality, you are just stacking correlated risks. \- Put premium is not free cashflow. It is compensation for taking downside risk. Plowing into EDP or SCHD is doubling down on the same risk factor (equities). In a drawdown, your puts lose, your dividends lose, and your margin cushion shrinks at the exact same time. \- “I do not plan to get assigned” is wishful thinking. Assignment is not a choice unfortunately. Otherwise I don't know a single wheeler that would despite the "I don't mind owing the stock" mantra. You can wake up tomorrow with the market down 8% and trust me you will get assigned. It doesn't happen often, but enough for you to be very careful with that thinking process. Now this is the part I don't really follow - picking EDP is clearly a good idea same for SCHB, why wouldn't you want to get assigned? In any case using premium to increase margin availability works great in a grind-up market. In a shock, it accelerates the margin call and smaller accounts feel that pain fastest. That really where your risk is and you can't just simply schrugg it off.

SetOk6462

For selling naked puts, assignment is never a desired outcome. Sell at approximately 45 DTE, manage by day 21 or when you hit 55% max profit. Regarding the ETF’s you buy with the income, that’s a good strategy but SCHD is complete garbage. Much better off buying SPY.

brokencreedman

Quick question about target date funds and 401Ks: this is what I have 100% of my 401K in currently is just a 2055 (I think? maybe 2050?) TDF. Are there other things that would be good to add to my 401K, or am I good to just keep it as 100% the TDF? Also, would it be good to throw a TDF into my Roth IRA as well? I currently just have VOO in my Roth, probably will add one or two more ETFs into it like QQQ or SCHD or SPYI or something like that?

Churchbushonk

You’re too young for SCHD. But to each their own.

xploeris

Historically, SCHD has been a reliable defensive fund that grows with the market but holds value and still pays dividends when the market's down. I've looked for funds that do everything it does but better and there's no clearly superior choice. So yeah, I guess it's a "boomer play" since if you're young you shouldn't bury usable wealth in a slow-growth defensive hedge. But if you're older and looking for ballast it's a solid choice.

No_Alternative_5602

With the exception of a few short blips, 2011 to now has been largely an unprecedented bull run. It would make sense that during that period that growth oriented companies which tend to pay very limited dividends would outpace value companies which tend to pay higher dividends. A large part of the idea behind investing in dividend bearing companies, especially in retirement, is that they're somewhat more insulated from market swings compared to the S&P as a whole. Yes, the amount they pay out will decline in an economic downturn, but the whole idea is that you don't sell any of the 30,000 shares of SCHD or whatever, and when the market comes back you're good as new. Once you'd sold off extra shares of SPY in a down market to fund living expenses, those extra shares that were liquidated are now gone from your portfolio. It's possible to keep at a hard 3% regardless of what happened to your portfolio's overall value, but that runs the risk of having some extremely lean periods when the market is down. I'm also curious as to what the actual average dividend yield was for SCHD over the time span in the chart. It's compared to an easy to calculate 3% withdraw from SPY, but would that 3% have resulted in more or less income than what SCHD would have been paying out over the same time frame?

UndergroundHQ6

boring af. market tilts sideways, NVDA up 0.2%, NEGG up 67% for some reason, $SCHD is still a dogshit boomer's choice and if you invest in it youre old

know-power

SCHD

Bman3396

I get that SCHD is the poster child for dividends, but why are you cherry picking only that ETF? There are plenty of dividend stocks that have outperformed SPY in the same timeframe. Dividends are fine mixed into a portfolio as long as you’re not chasing yields.

doucasandkapetanakis

For most of this timeline (from 2011 until 2023), SCHD total return and SPY total return were essentially equal, with SCHD even outperforming in 2022. Since 2023, yes SPY has clearly outperformed but maybe this suggests it’s relatively overvalued compared to SCHD?

billocity

SCHD should be in your maybe pile then. Mostly consumer staples and long standing companies that pay consistent dividends. If the market tanks you’ll still get dividends and you could reinvest in other ETFs at bargain prices. SCHD is definitely not a growth play but it is more stable than growth-only ETFs, definitely not “low-volatility” in the strict sense like bonds.

annoyed_meows

The bigger concern is why you even have SCHD in your early 20s. Im in 40s and stay away from that hog.

Heyhayheigh

You shouldn’t have SCHD at your age. QQQM or VOO, buy weekly auto. Work to increase the weekly. Even some favorite bluechips NVDA MSFT META on auto weekly make more sense than SCHD at your age. But it is easy to fall in love with basis, better to use dispassionate ETF’s. SGOV for short term cash/emergency fund. Sell only when you have something urgent to pay for. Look at your account when you have extra money to include in auto weekly. No other reason to check. You will learn. Or you won’t.

W0X0F26

I use SCHD for this given its stability.

CedarSoundboard

In the last few minutes before close I dropped some grandpa SCHD bullshit and bought BULL instead. In 15 minutes it outperformed the last 3 months of SCHD.

Dehyak

I’m in the same boat, I’m going 80% VOO and 20% SCHD

eskhalaf

105M in SPYI, QQQI, BTCI, JEPI, JEPQ, VOO, SCHD and SCHG and couple other index funds would give you monthly dividends about 1M+ if not more. Sorry for your loss OP

Due-Sea4841

I wonder if your 10% in BND and 10% in SCHD caused a performance drag.....??

Maleficent-Fennel250

Personally not a fan of dividends but I do SCHD JEPI JEPQ and VYM

OceanWaveSunset

This is not advice, and it depends on what your goals are, but for me yes. I have VOO, BV, VXUS, and SCHD. I wanted an easy to manage, wide covering ETFs that I can buy partials and slowly build up my portfolio. I plan on letting this sit for a medium to long amount of time as I just add money in when I can. I averaged a return of 10% last year and 5% so far this year. I don't know if this is the best strategy but for someone who just wants to add money when I can and see the bottom line go up more than down, it is working so far. I will buy one off stocks that I plan to keep for a few moneys and keep a little cash so I can buy every time the market dips but the vast amount is just throw in on payday. I hope this is useful.

norcalnatv

You got it. Buy funds like SCHD, VOO, IWM, VUG, VTI, SCHY in your retirement accounts. Go look at morningstar to compare them. Reinvest the dividends through a DRIP. Don't go crazy picking individual stocks, 4-5% max exposure, and don't play options. Diversification is important, invest new capital regularly into what you've got (dollar cost averaging). Then leave it alone, literally for decades. What you're getting by hiring is someone to do that for you. They'll spread your capital out into a bunch of different ETFs (20-30) that are each slightly different, some international and bond funds and pay them 1% for the privilege. They will take things to the next level with tax loss harvesting and rebalancing. It's all automated with them, it's not like you're going to get a lot of hand holding. But you can do it yourself. You're getting it. It's not hard. (I have a high 7 figure retirement account that's all self directed that just took patience, a little bit of trial and error and the occasional course correction. There was a bit of luck in there too.) You're young enough to make some mistakes and it's not going to kill your account. Courage!

grokson02

30% of portfolio in $VOO is smart, $SCHD and $JEPI offer higher income.

dalektikalPSN

I just took my acorns account and rolled it into my fidelity account. Is any of this redundant? Should I look to sell some and invest in others? I'm mainly looking at long-term/retirement. GOOGL - 29.51% VTV - 21.58% OHI - 14.28% O - 8.48% VTI - 7.61% SCHD - 6.81% VOO - 5.79% IXUS - 3.93% IJH - 0.95% BITO - 0.49%

Difficult_Physics704

I'm running 2 UNH , 5 NVO, and a handful of a couple of others such as CGTX, NLSP, ELTP, and IXHL Along with IVV and SCHD for ETFs

VeryStableGenius

> Does anyone have any advice on what to do next? My retirement goal is 2035. Speaking for myself, here are my choices, that I'm gradually working toward: BRK-B - it has consistently beat the market, and keeps 35% in cash (T-bonds) on hand for opportunistic acquisitions. Don't time the market. Let someone smarter and more experienced time the market for you. SCHD - boring dividends, paying almost 4%, but total return of 8.5% *over inflation* for the past decade. P/E of just 18 or so, so the valuation is reasonable. Less likely to get pummeled in a bear market. VYMI - Maybe. International dividends. VTV - and other value funds, P/E 20 or lower, again priced reasonably by historical standards. TIPS (inflation adjusted bonds) - paying 2.6% over inflation. But only in a tax deferred retirement account. This is to hold cash and bet on a future interest rate fall (like another bout of Quantitative Easing). If QE happens, they'll shot up in value. I'm staying away from: hot stocks and index funds, because they are heavy with exactly the get-rich-quick, get-poor-quicker stocks like the ones that OP is cashing in. Alternatively, there are equal-weight index-compisition funds out there that contain homeopathic amounts of TSLA. If the $600K gain is not in a retirement account, it has to be carefully cashed out to avoid tax consequences, checking out [IRS capital gains brackets](https://www.irs.gov/taxtopics/tc409). It will be hard to bail out without paying $90K tax. You could even write calls against your gainer stocks to squeeze out more money and insulate against *some* losses if you pursue an extended sale schedule. Eg, a March 26 in the money call goes for 24, about 13% of NVDA's price. But you have to know what you're doing, and assume the risk of a sharp fall if you dilly-dally in diversifying.

Based_Commgnunism

At 23 all you need is VOO and VXUS. You don't need BND because if there's a crash right now it doesn't matter for you. You barely have any money in and have decades to recover. Bonds are to protect capital once your accounts are large and you are looking towards retirement. If you think you can't personally handle market volatility without having a heart attack and panic selling then a small allocation (10%ish) is ok. SCHD is a trap, dividends don't matter. Google dividend irrelevance theory for the technical explanation of why they don't matter. Even if dividends were real you would want them closer to retirement though. QQQ is recent performance chasing, which doesn't work. If you have to have QQQ because you think tech is going to rule the world forever and exceed even the massively inflated current expectations then fair enough I guess but keep it small. VXUS is a necessity. It reduces risk without reducing expected returns. Diversification the only "free" performance out there.

Due-Sea4841

Consolidate to 70% SPYG or SPLG, 15% VXUS, 7.5% Crypto ETF, 7.5% COYY for huge 180% distributions which are paid weekly. Get rid of SCHD that Youtube'ers pump for GenZ and boomers......GL! BND......bonds?.....lol

kiwimancy

Given that you are investing in vanilla index funds, there doesn't seem to be a benefit to hedging your stock market beta over simply selling some of your equities. Hedging is used when you want to be exposed to some risk factor A without B, but you have access to assets with risk factors (A+B) and B. So you buy (A+B) and sell B to effectively get just A. SCHD is an equity fund. Replacing high grade bonds like BND and VGLT with an equity fund would make you more exposed to stock market risk, not less. Finally, cash rates dropping (beyond initial expectations) would likely (though not necessarily) lead to lower yields for intermediate and long term bonds like BND and VGLT, which increases their present value, not lowers it. Bonds do poorly with rising yields, such as when inflation expectations rise.

RenaissanceMan12608

Thanks! I looked over the pros and cons this weekend, keeping SCHD. It’ll be better in 30 years lol

cool_yuwen

It doesn't matter if that growth comes from a dividend (from SCHD) or from the stock price going up (like with VOO/VTI). A dollar gained is a dollar gained, and it's all tax-free in the end. Because of this, the tax advantage doesn't make a dividend strategy "catch up" to a growth strategy. The only thing that matters is **total return**.

Popular-Artichoke-13

Stable/growing companies will have their price pushed up to the point the dividend is low. High dividends is the market pricing in risk. High also is also a pretty wide range. SP500 dividend yield is 1.2%. SCHD yield is 3.8, over 3x higher so it is relatively high. Then you get into BDCs/Tobbaco/REITs/Oil and Gas/CC funds that can be in the 5-15% range.

LinoCrypto

Does anyone have advice on ETFs to hedge against the market? My current hedge consists of BND and VGLT which I want to steer away from due to potential drop in rates. Would SCHD be a good replacement? My current portfolio consists of: BND 15% VGLT 5% VXUS 30% VTI 10% VOO 40%

Kira_Dumpling_0000

Go SCHD

dragnmastr85

SCHD looks very enticing. I haven't considered dividends much besides what the advisors already picked up. I'll have to look at that.

BouncyEgg

Hopefully my attempt at explaining did not push a VOO/VTI equatement to a "growth fund." Perhaps I could try to make it more clear that OP brought up 3 separate categories and each will perform differently. * Dividend stuff: SCHD * Growth stuff: "growth fund" * Broad market indexes: VOO/VTI

BouncyEgg

The concept of putting tax inefficient products (such as SCHD) into tax advantaged space is fine. However, I worry your question reveals a degree of not quite understanding what SCHD is because you essentially equate it to "growth fund" and VOO/VTI. Each one of those things (SCHD, "growth fund," VOO/VTI) are different enough that it is reasonable to make the distinction. * SCHD generally focuses on dividend producing stocks. * Growth funds generally focus on stocks that do *not* produce dividends. * VOO/VTI does not care about either dividends or non-dividends. It just covers everything. In the long term, *no one knows* which will make you end up richer. Some years, SCHD will be best. Some years, growth funds will be the best. But in the long term, it would be expected that VOO/VTI will *not* be the *worst* performer of the 3.

MediumLanguageModel

Really interesting. I'm in a similar boat but your strategy is much more thought out. I can't speak to specifics, but the biggest factor that jumps out at me is make sure the expense ratio of each fund is very low. I'm not familiar with the foreign tax credit, but I would think there's no tax hit in the IRA so I'm curious to learn more about that. SCHD is another broad based fund without so much exposure to tech, and it offers dividends, so that's a big part of my Roth IRA strategy so I can reinvest without the tax hit. Yeah do what you can at getting rid of any managed account fees. Your plan is self directed anyway so why not? I would that that seriously as those losses will compound.

Due-Sea4841

You want to invest for 10-20 years to then buy a house? How about a moderate ETF with about 4% dividends like SCHD? It should compound and grow 10% with reinvested dividends annually.

TheSavageDonut

#1 -- establish a rainy day fund if you don't have it already #2 -- open a ROTH IRA if you don't have one already and contribute the max amount right now ($7000 for persons under 50). #3 Talk to a CPA about setting up a college fund for your daughter (assuming you want college in her future?) -- putting $30k in that might set her up nicely for college in 20 years #4 - open a brokerage account ideally with the same firm that you open your ROTH IRA with In terms of investments -- your ROTH IRA can basically do anything, and it will be tax-free. Your brokerage account should have tax-friendly investments in it like SCHD. Even doing all of this should still give you a nice chunk of change to start your investment journey -- you have 20-25 solid years to grow your investments. I like a 3-ETF approach of SCHD / SCHG (growth) / JEPQ (income) -- as this is a nice set of 3 investments that can be grown over time. Turn DRIP on in the ROTH IRA and Brokerage acccount. With the Trump administration being friendly to Crypto -- might be worth checking out a bitcoin ETF like BTCI.

Beetlejuice_hero

Call me crazy but amidst the AI hype (and I own a bunch of such companies) last week I bought boring old SCHD. $40k and looking to up to 100k total. I think those companies will rally in a lower interest rate environment. Also relatively safe in the event of an economic downturn.

Due-Sea4841

What's your age that you need sub 4% dividends from SCHD? And what is so special about VSUX and other International funds. Have you looked at the 5 yr charts on some of those funds? They're less than half the returns of the S&P 500.

Etraderbanker

Buying SCHD in the money long January expirations on every red day.

Beemrmem3

Just keep it simple. Put 30% into SPY, 30% into QQQ, and 30% into SCHD. I would keep 10% in cash for buying opportunities/dips

VeryStableGenius

I've realized that I'm no good at picking stocks, so I'm going for stuff like * SCHD - almost 4% dividend, P/E of about 17 (fair by historical standards) * BRK-B - solid track record of actively managed returns, and they keep cash to time the market (and timing the market works for them, just not for me). * VYMI - for broad international diversification broad index funds scare, because they force you to put money into meme stocks like TSLA and PLTR. I'll take the boring stocks that are still fairly priced by historical standards.

micha_allemagne

This is basically 80% US large-cap/tech when you stack SCHG plus your individual tech stocks, so you're pretty concentrated. SCHD adds a tiny bit of value tilt but not enough to change the picture, VXUS is too small for real international exposure. Here’s a breakdown of your portfolio: https://www.insightfol.io/en/portfolios/report/0db3a22815/

leaning_on_a_wheel

Skip SCHD, it doesn’t make sense to focus on dividends with any percentage of your portfolio at your age. I’d also roll that “20% in blue chips” into SCHG as it will be pretty much the same but better diversified. I also wouldn’t allot a specific percentage of my portfolio to SGOV but instead 6 months of your average expenses plus anything you need for planned large purchases (like a down payment or vacation)

DragonOfBosnia

I bought shares of small caps and got burnt, large caps all stocks can be tricky. Buy ETFs like VOO SCHD and 10% BND. Nothing else and sleep like a baby.

solo_entrepreneur

VOO or VTI but no SCHD. Have some HYSA.

Due-Sea4841

Drop the SCHD, the retirees's dividend drag. Buy SPYG or SCHG for growth instead of VOO.

taplar

I'd drop the SCHD and put these cash part in VUSXX or SGOV instead of a hysa/cd.

PassiveF1st

SCHD up 1.95% this week. :)

Burndog123bbb

SCHD investors finally having their day

Far_Veterinarian_460

All in on SCHD for the bear market

RaiseEconomy5779

Not advice- just what I’m buying and why. My core is VTI plus VXUS for broad, low-cost global exposure. For income with quality screens I add SCHD. I tilt to small-cap value with VBR/AVUV for cheaper valuations versus megacap growth. For AI I prefer “picks and shovels” like ASML and TSM (tools and foundry capacity). For energy and power exposure I hold XLE and CEG to play cash flow and rising electricity demand. Cash sleeve is SGOV for T-bill yield while I wait. My horizon is 5–10 years, I add on drawdowns and rebalance annually. If you want super simple, a VTI/VXUS/SGOV combo gets you most of the way there.

VeryStableGenius

1. Value funds are trading at traditional or slightly inflated P/E of 17 to 20 or so (eg SCHD, VYM, VTV, BRK-B). This is a 5% to 6% real value-based return. 2. The overall market (SPY) is at 27. This is a 2.7% real return. 3. The difference between them is the hot tech stocks, that are soaking up a lot of investment dollars. So my view is that by stuffing money into value based funds you will enjoy a nearly-traditionally valued stock market, though a crash in the high flyers could percolate down. If you look at [stock market concentration](https://i.imgur.com/5WgdkNd.png) from [this paper](https://www.morganstanley.com/im/publication/insights/articles/article_stockmarketconcentration.pdf), you will see that the top 10 companies make up 27% of the market in 2025, vs 15% in 2015. Market concentration also peaked before the 1990s tech bubble burst. You have to go back to 1960 to find a comparable level of market concentration as 2024. The 1960-1970 period was [stagnant in terms of real returns.](https://bostonportfolioadvisers.com/wp-content/uploads/2022/02/BPA-Commentary-Q1-2022-Chart.pdf), picking up in 1980. So the lesson I choose to get is to invest in value stocks and funds with PE<20, and let other people buy speculative stocks and the index funds that are forced invest in them. Every dollar that buys TSLA and PLNTR is a dollar that isn't driving up the price of BRK-B and SCHD.

trafficjet

How old are you? It kinda assumes life (and markets) are gonna play nice, and you know they never really do. like, what happens if you're in your "aggressive" years and a crash wpes out QQQM’s gains for 3+ years? or you're sliding into "retirement readiness" and suddenly BND’s not even keeping up with infltion while SCHD cuts yield? you're mking a lot of small bets in what feel like tidy buckets, but real life doesn’t rebalance itself that cleanly. have you ever backtested this setup through rough years, or is it more of a “this feels divrsified enough so I hope it works” type of deal?

Atrox_Blue

If you’re looking to maximize growth don’t invest in BND or SCHD… although if your desires may warrant those investments, so be it.

Investoid

if 1,000 was 1% or less of my portfolio then I would put it in SGOV and wait so I can at least get something out of it. Otherwise SCHD since I have a fairly small side bet in it.

IronyElSupremo

SCHD and DGRO have different goals. DGRO uses an index to balance growth with increasing dividends, while SCHD just looks at larger stable dividend payers regardless of growth (actually the Dow 100 Dividend index). So SCHD will be yield more but also be more “staid” than DGRO NAV wise. Caution they are still stock funds and can fall with the general market, so don’t mistake them for bond substitutes.

Acrobatic_Side_8336

At least this cult is getting somewhere. Can’t say the same about the SCHD cult

JMMatKurek

Thank you for the insight! What are your thoughts on SCHD instead of VTI or VOO? Do you think I should focus a bit on dividends, too, or just growth?

National-Net-6831

I’m going to start buying the VIX…I hedge with SCHD and DIVO. We’ve been swinging happy and partying…I’ve been selling off some gains the past few months but the fear will come back hopefully soon because I wanna make more moeny!!!

noonewilltakemealive

SCHD and live off dividends for the rest of your life

UndergroundHQ6

Real advice gramps: come back in the new year. Seriously. Not a good time to invest even SPY isn’t safe right now with tariffs. QQQ is akin to the dot com bubble, the banking sector seems to be banking (lol) on the fed reducing rates, and I swear to god if I see one more person recommending SCHD I’m gonna lose it

NNNTrader

You sound like you're looking for conservative equity preservation and a small amount of income? If I'm right - $SCHD ([Schwab US Dividend Equity ETF](https://www.schwabassetmanagement.com/products/schd))

Relevant-Ad4735

VOO, SCHD, QQQ are a great place to start. If you like income check out the NEOS funds, SPYI, QQQI, etc

Historical_Low4458

No, a semiconductor ETF, for example, is just that. Whereas, and ETF like SCHD is more diversified

STierMansierre

As one of the ones with less money and stays away from options--there are still tons of ways to make money, and many of them take very little understanding and work. A guy like yourself would do well with a High Yield Savings Account, or HYSA, an easy 4-5 percent per year returns on your liquid. Certified deposits are another route if we're talking banks. In stocks, a similar avenue would be something like dividend funds, an SCHD if you will. The returns fluctuate more but you have more potential with growth. I don't sweat these people talking high returns in good years because when I ask them how 2022 went for them they shut the fuck up. Also, advice for everyone: Mind your own business and it becomes harder to mind other's.

HopiumTrump

There was already a dump earlier this year. Maybe next year there will be another dumpa. until then release the pampa!! I’m buying SCHD

reeksofdank

Lol 4mil in SCHD or DIVO nets 14k a month in dividends. Oh and in 5 years that 4mil will be 6mil

reeksofdank

Lol. Put 2mil in DIVO or SCHD, you’ll make 70-90k a year on dividends. 7k a month. All while your investment grows 9% every year

Purple_Bearkat

Thinking of moving SCHD holdings over to UNH. The yield is pretty close and SCHD has very little chance of the same upside.

Heyhayheigh

Talk to a trusted pro. Hopefully someone you know personally. Obviously they will steer towards investing, but use them as a sounding board to the issues you will likely run into. Plus they can take other factors into account: do you have friends and family to help being a landlord? What is interest rate on loan? Etc. the conversation is far more complicated than a simple answer. Experience investing. Would you VOO and chill? SCHD and chill? These things are nuanced. Best of luck.

Mundane-String180

If you’re comfortable with investing all 40k right now then just put it all in right now. If you’re not comfortable with all 40k going in the stock market then dollar cost average it. Also I’m not trying to be annoying or seem condescending but just a heads up SCHD, VYM, and BRK.B aren’t value equities. They are more dividend-focused or large-cap QQQM is NOT broad growth it only has 100 holdings. It’s your choice but SCHG and VOO overlap. (they have the same stocks) To be exact around 50% are the exact same. It has a correlation of 0.94, to explain correlation 1 is the absolute most possible and -1 is the absolute least. A correlation of 1 means they’re 100% identical and -1 means it’s the exact opposite, a correlation of 0.94 means it’s practically identical. You’re better off choosing one and sticking with it. Also you’re already in so much tech you shouldn’t “go into higher risk tech” you’re already in a lot of high risk tech and the stuff you listed is just an overlap. If you have any questions or anything please ask even if you think it’s a dumb question.

taxotere

That’s up to you, to weigh what you need/want and are likely to stick to for the long run. My own for example are: 50% VT 30% SCHD 10% TQQQ 10% BRK.B

MightyMiami

The fundamental principal of SCHD is great, but it does not align with what should be your investing goals at such a young age. You have the power of time and compound interest. You should be trying to maximize growth not income-focused dividends. I'm saying go out and take on big risk. A quick quick search would should you over the past decade that an S&P 500 tracking ETF like SPLG returned much better than SCHD, even with dividends reinvested. SCHD would be something I would be more interested in as I approach retirement.

MightyMiami

You're too young to be dividend investing, drop SCHD.

Colonel707

Decide what is your risk appetite and how much return you want to target. That should help you understand what parts of the market you want to target. Also, decide if you want the absolute return (ie you don’t care about its volatility) or if you want your portfolio to be less volatile that broader market in long term. For example, if you want to grow capital aggressively- maybe dividend companies should represent lower portion of your portfolio simply because these companies do not invest significant capital into their growth. On Palantir - solid story, but it’s trading high in valuation metrics. It takes significant portion of your portfolio. Even if broader market rallies (VOO,QQQ,SCHD), you don’t want to end up in a situation where PLTR stays flat or drops - hence you will underperform the marker. Make sure your investment thesis is solid and you understand the business behind it.

Different-Run7276

Full port calls on SCHD

Different_Bad4970

Nice! I hold pretty much the same ETF's as you have listed. I dumped SCHD.

20hrfast

SCHD$ is the play

BigDipper0720

Invest half it in SCHG and half in SCHD. Add to it as you can. Wake up in 30 years and "voila".