SCHD

boogieblues323

I understand your wife's fear. I also inherited some money and have struggled with how best to invest it. I'm 5 years out from full retirement and don't have the runway to recover from a market downturn like we had in 2007. I also already have quite a bit in equities through my 401k over my career and a seperate brokerage. I did similar to what was suggested above. I took advantage of increased catch-up contribution limits and maxed my 401k and Roth IRA. I've been focusing on funding Roth contributions to allow for cash flow diversification. Its been a slow process and I still have some in the credit union laddered in CDs paying 4 to 4.5% interest. When one matures I use it to fund my Roth IRA where half goes into conservative ETFs like SCHD that pay qualified dividends and the other half goes into CDs within the Roth so at least the interest is growing tax free. SCHD is up about 20% from when I started 2 years ago so there's also been some growth. Yes, I know it is conservative and I'm trading potential for larger gains with safety but it gives me an anxiety free pool of money. At this juncture I'm not looking to get rich, I want to have enough to be comfortable without having to worry about what the market is doing.

gosumage

Good to see you are in ETFs. Individual stocks can be quite risky. I would pull out of SCHD or anything dividend related. These will not be helpful for growth on a 1k account.

tazmanian00

on my roth ira, i’m in: VOO, SCHD, VTI, and QQQ on my on my individual: VOO, VFVA, QQQ, VXUS, VTI, SCHD

Airy-Otter

Hey! Sorry for the resurrection of the post, but I'm currently using the strategy (I think). More importantly, I've actually had success in selling covered calls and cash secured puts. I believe they are called covered strangles? Here's a video, just watch the first 4 minutes of it to get the gist (4:10 is a good stopping point): https://youtu.be/wS7sjV_UOMw?si=BuC_ROKtxb69dSGL Anyways, I personally have been doing this covered strangle option and it's my most successful strategy as I trade on stocks that I believe are good growth. In the video, they talk about rolling your cash secured puts out, but I do roll my entire covered strangle out further for premiums and sometimes roll the strikes higher or lower too. My suggestion is exactly that you buy stocks you like, and then keep rolling them out 1 week at a time (I'm mostly rolling by buying my ~2DTE then selling the same strike at ~9DTE and collecting that premium). Why Weeklies Work Best Here: Accelerated Theta Decay: Options lose their time value much faster as they get closer to expiration. By sticking to 7-to-9 day windows, the premium bleeds out quickly in your favor. Easy Rolling: If the trade "fails" (meaning the stock swings and tests your strike), you aren't locked in for months. You can safely and nimbly roll the position out to the following week, adjusting the strike higher or lower as needed to defend the trade and still collect a credit. Orrr even holding the same strikes if you believe it's coming back to between your strikes again. It's even better if you are holding dividend stocks for the calls. If you look at SCHD, it is a good holding stock, as it pays a good dividend, and also it has an upward trend along with not being SUPER volatile. So you get consistent money from the premiums being sold while knowing it's going to be consistently OTM. Of course, this isn't financial advice, it's just that I found success this way (haven't worked a 9-5 for 2+ years now).

DifficultSession51

I just bought $60k of VTI, SCHD and SMH 2 weeks ago should I sell them all?

TeBp242

for such a windfall, i'd put it in several blue chips or SCHD and call it a day.

CD274

Should have picked KO, the quintessential boomer stock. Or SCHD. Or I mean... Natural gas company tied to AI isn't exactly the right boomer stock pick

Killerfeed_Reborn

I did the math over the 3 day weekend. It's 2 mil into SCHD compounded over 5 years and I'm retired. I have almost that in net worth 💪🏻

spilledonwhite

After 3 months of bleeding, SPMO is now a store of value. SCHD flash crash.

spilledonwhite

so SCHD is high beta and not defensive, got it

beanman95

I mean if you split it between a few covered call ETFs you could easily generate 35k ish a year on your 410k, JEPI, JEPQ, DIVO, SPYI, QQQI, SCHD etc

GreyBoyTigger

SCHD is good and boring too

Austin1319

i still like SCHD

Competitive_Race_388

No. I am a boring safe VOO & SCHD investor (80% of my holdings) but I am particularly bullish on SpaceX. They are the clear front runner in many future technologies. It’s a long term hold for sure.

Soosietyrell

First, pay off your car. Then SCHD.

RedditLeagueAccount

I'd normally save invest. It has more returns than the interest rate. Better math. However, right now is a grey area. Personally, I am currently timing the market which is normally something you shouldn't do. I expect a market crash because I believe that while AI is the future, we are currently in an AI bubble. The pieces are not in place to support AI and their current offerings and benefits primarily lead to less employment even if they succeed so its a no win situation IMO. Never bonds. Real estate is a path to wealth but people often do not fully consider the risks. You say you already own properties so you are already aware of the risks. I don't find it worth the hassle. A bad tenant. Or something like covid where they force you to let people stay for free is concerning. Plus, if young people are lucky, there will also be a major housing crash. Median house buying age is above 55 now... So that boils down to either stocks, or paying the primary off. You didn't mention your age. If you are 50+, I'd do a defense stock like SCHD or I guess it you are a firm believer in real estate, you could get a REIT. If you are younger, who cares if there is a stock market crash. It'll recover by retirement time so the math would be better than paying off the house anyway. You could also DCA into the market. If it crashes, change strategies to pay it off now. But honestly, even then, that's when stocks are discounted. Greed keeps telling me stocks unless retiring soon. The interest rate is low enough that both normal and defense stocks beats the 6% in returns.

CertifiedBlackGuy

Yeah, I would specifically look for ETFs that screen for profitability (My 401k has access to DFA funds, which screen for profitability as part of their metric) So, I would actually not hold most of the ETFs OP listed specifically because they are broad market funds. SCHD for large cap profitability. SCHY for ex-US profitability. DFA has mutual funds, I don't know about ETFs, but they would be what I would look at if you don't want a dividend portfolio. Zombie companies are the last thing I'd want to hold in a downturn.

Solid_Resort6852

The mechanics of a dividend are that on the ex-dividend date, the stock price falls by the amount of the dividend before trading opens. But, a company with an ongoing ability to pay a dividend will see that stock price rise over time (all else being equal) such that it earns back the dividend prior to the next ex-div date. So this is why a diversified dividend portfolio can show both price return and a yield. SCHD YTD is up 27% on price and has returned another 2% from the dividend for a Total Return (TR) of 29%. Obvio it's benefitted from MRK, CVX, etc being up so much. Over the past 10 years its returned 9.3% from price and another 2.2% from dividends, which became 3.8% if you reinvested them. So over 10 yrs it's provided a compounded annual total return of 13.1%.

SteakEater137

SCHD, RWL, and SPYD feel a little more consistent in my opinion. Still have volatility in this market.

mygatito

When are they expiring? You should sell all but keep 1-2 contracts for each ticker. Put maybe 80% in SCHD or something. And start with remaining 20% to play with. Wait for next earnings call maybe you will recover some of it through the 1-2 contracts for each ticker.

tpc0121

do yourself a favor and pull up a chart of SCHG and compare that to SCHD.

tpc0121

>But if stock prices are either flat or trending flat, you would need to reduce your holdings to unlock something. this scenario that you highlight isn't a "gotcha" that you think it is because it (a prolonged bear market) would be no different for a dividend paying company. if a dividend paying company's stock price came under pressure for a long time, then the board will likely cut or even suspend the dividend. what then? what you have to mentally come to terms with is the fact that total return = CAGR + dividend yield. that's really all there's to it. just compare, e.g., QQQ's or VOO's total returns versus SCHD or DGRO or whatever dividend paying/focused ETF that you prefer. dividend payers are never going to outperform, especially if you take into account tax drag. that's literally why they're declaring dividends in the first place -- because the board doesn't think they can put the excess company earnings to good enough use to outpace the broader market.

PortfolioNerd

Staying in equities and adding a defensive/factor sleeve is a coherent mix as long as you write the weights down. SCHD (or quality/dividend) as a slice of the equity book, not a replacement for the whole VOO pile, is the usual way people do that. Then only rebalance when the sleeve drifts past a band you picked. Not advice, just a process next to the thesis.

milksteak122

Anyone in the accumulation stage should care about total returns within their risk tolerance. I am 36 and I have thought about dividend stocks in retirement for peace of mind of having income without selling shares. But at age 36 I would be a fool to invest in SCHD instead of VTI.

tinzor

Theoretically yes, but SCHD (Shwab US dividend equity) has grown 26.83% in the last 12 months vs VOO's 19.04% in the same period. It has also deliver almost 4 times the dividend. SCHD's total return over the last 12 months is 29.2% vs VOO's 19.9%. To be clear, this is not normal, I am just pointing out that recently dividend stocks have outperformed the market.

PortfolioNerd

Moving a big VOO chunk into SCHD because you want a milder drawdown is a defensive/factor tilt, not diversification by itself — SCHD is still US equity. If the goal is "hurt less in a rough SPX drop," people usually size that as a sleeve against a written target weight and only rebalance when it drifts, rather than an all-or-nothing swap. Not advice — just a sanity check on the process next to the thesis.

TheObsidianHawk

Listen no one ever talks about dividend stocks. JEPI, SCHD, QYLD, VOO is the way to go.

Keeltoodeep

im buying SCHD like a boomer in this market

GruntledV8Fanboy

My general “safe” holds have been VOO, VIG, VIGI, and some SCHD. I did semi-recently add some QQQ and am seeing how that does. Then I have 25% of my investment portfolio in individual stocks and such. My retirement account is in a vanguard retirement fund, S&P 500 Index Fund, and a couple other things but largely goes untouched and has managed well over the last 5 years. My personal investment account has tripled over the course of 6-ish years. The fact you’re looking at investing and planning for the future at 20 already puts you ahead of many/most out there

Jericho3434

I have a different method. When I win big I buy some SCHD, go hang out at the bar (I still get the special, will not pay the extra $1 for cheese on my burger, fuck that).

ManosAndrio

I like the idea of reducing exposure to expensive growth/AI names, but I wouldn’t assume SCHD automatically gives you 10–15% of downside protection. In a true 50% S&P crash, valuation compression can and will hit almost everything.

big_deal

SCHD is only a very minor shift in valuation allocation. It's still about 80% exposure to large cap US market. If you're worried about valuation consider allocating to international stocks.

One_More_Rep202

That makes sense. SCHD may behave differently in a downturn, but I’d still treat it as an equity tilt rather than the part of the portfolio specifically protecting your withdrawals. Once you have one consolidated view, include the individual stocks and look at the actual stock/bond/cash allocation across everything. That should make it much easier to see whether the overall portfolio matches the retirement plan before moving a large piece of VOO.

One_More_Rep202

That changes the picture quite a bit. Your 3.7% starting rate may give you some room, but I wouldn’t compare it directly with Bengen’s 4.37% unless you’re also using something close to the portfolio and withdrawal assumptions behind that number. His updated model uses a diversified 55% stock, 40% bond and 5% cash allocation with regular rebalancing, not an all-equity portfolio. The 15% in individual stocks may also be a bigger concentration risk than the difference between VOO and SCHD. Before moving a large part of VOO, I’d model the entire retirement portfolio including those stocks and see what actually funds your spending if equities fall early. SCHD may change the type of equity risk you hold, but it doesn’t remove sequence risk by itself.

One_More_Rep202

Has anything changed about your time horizon or how much of a drawdown you can tolerate, or is the move to SCHD entirely based on expecting it to hold up better in the next downturn?

hymie-the-robot

if you look at the Portfolio Backtester site, you can see what happened in 2022 (as a stress test) and over a longer time. SCHD indeed behaved pretty well in 2022, but VOO may do better overall. consider something like 80 SCHD 20 SPMO, which dials back the IT while maintaining a good return. it's worth spending some time to test different allocations at Portfolio Backtester. just remember this reflects the past and not the future. still, it's helpful to see how investments held up in 2022.

FailOk1528

looks fine tbh. the $1600 every month will probably matter more than whether SCHD is 15% or 10%

No_Extension4974

full porting into SCHD shares im tired boss

sirzoop

VTV SCHD Basically value and dividend companies

TreGet234

Fullport SCHD?

CalebVanPoneisen

JEPQ +22% in 4 years SCHD +67% SPY / VOO +87% VTI +88% QQQ +137% QLD +268% “iT’s hElD uP wAy bEtTeR thAn mOsT peOpLe PrEdiCtEd” It’s shit.

oldspice322

SCHD and chill

MattEdmondsWolf

Age/location - I am 42 years old and live in the US. Employment - I am employed making $57,800/yr. Objective and time horizon - retirement, looking at 20+ years Risk tolerance wise don't mind wagering it all on blackjack I currently have SWPPX, SWISX, SWSSX, SCHC, SCHD, SCHE, VFIAX, and VIMAX. No debt. The big question - I am considering consolidating my positions in SWISX, SCHC, and SCHE into VXUS. This would be at Charles Schwab. I am wondering if this is a good idea or I am barking mad

GuwopGOAT

Let me guess your full port SCHD

8MIGGIM8

I agree with your train of thought but what does that have to do with having more or less money. SCHD has had very good performance over the years similar to VOO. The only difference is that you are postponing the tax event.

8MIGGIM8

Why is it foolish?? If invested into an ETF with focus on dividend payout it can be a good long term investment if dividends are reinvested in the early years. SCHD is such a ETF in my opinion. I would love to hear thoughts on this 😄

aks_intel

Yep SCHD YTD: \~27% NVIDIA YTD: \~20%

Novel-Comparison-364

In my younger years i did some dividend chasing not accepting that i needed to focus on growth instead. A tale as old as time. Anyway my dividend positions never surpassed my index funds but i have had some money in them 8k and 7k in SPYD and SCHD respectively. I also have recently sold 4k of SCHD that I’ve been sitting on. Im 30 and looking for quicker/slightly aggressive growth so im not scared of something like TQQQ but i was thinking maybe a step back from that like QQQ or QQQM or some sort of allocation strategy for QQQ/QQQM, TQQQ, and VTI. My question is what would you do? Consolidate out of the dividend funds? If so, what would you go into?

TreGet234

Can SCHD go higher or is it in a bubble itself to counteract the ai bubble?

Fhyzikz

Everybody since the beginning of the year. SCHD and KO are both up a lot more than SPY and QQQ ytd

Imdwood

That’s exactly what I’m trying to figure out. The roughly $11k per month comes from multiple income streams, and a significant portion is tax-free and stable. My rent is about $2,900, I have children, and I’m still working out my exact monthly spending now that I’m moving into my own place. My goal is aggressive long-term growth, but I don’t want to actively trade or constantly chase whatever is moving. I check the market often, but I’d rather automate contributions and hold for decades. Right now I’m thinking mostly VOO, a smaller amount of SCHD, and only a limited amount in individual stocks or crypto. I also need to put more emphasis on tax-advantaged retirement accounts. Most of what I’ve been doing so far has been through a taxable brokerage, so that’s probably the biggest weakness in my current setup.

Imdwood

That makes sense. I think I got too focused on seeing dividend income grow because it feels measurable and motivating. But at 32, total return should probably be the main goal. I’m leaning toward making VOO the core of my portfolio, keeping a smaller amount in SCHD, automating everything, and letting it compound.

excelquestion

I will vote for SCHD as well

Fabulous-Transition7

SCHD or VTV or a mix of both

Cute_Win_4651

Sell everything and put 100% into SCHD, and anything new going in goes to BRK.B, FSPGX, and individual stocks

Fabulous-Transition7

That's a lot to keep up with. VGT or XLK would cover most of your positions in a single etf. GPIQ/GPIX is superior to JEPQ/JEPI. VTV, SCHD, or SPXT covers the blue chips.

zooka19

SCHD holders right now: [https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSMjouasuExPVPNdjRsqIiHIQqC1yY9o6HJExea-V0EDw&s=10](https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSMjouasuExPVPNdjRsqIiHIQqC1yY9o6HJExea-V0EDw&s=10)

mm_newsletter

Healthcare and staples are over 40% of SCHD, with another 14% in energy. A bunch of the boring names are working at once.

SirBobPeel

I like SCHD myself. Large companies, and it's been nice and smooth in choppy waters. Others I like include RDIV, HDV and PEY

TechnicalSleep7501

I am VOO, VXF and VXUS till infinity. VBil for dry powder. VTip for inflation later in life. VIG, VIGI, SCHD, SCHY to generate some cash tax free because tax bracket is 12%. 

Successful_Bit8606

SCHD and chill

QuantGuru

Would you guys recommend rolling SCHD

fakemedicines

SCHD

snarpsta

Because I have 15k sitting on my broker account that was supposed to go in to SCHD and I hesitated ><

SteakEater137

SCHD is up 28% YTD... What the fuck dividends are ripping this year. Im pretty heavy in SCHD but this is so high up it feels like time to sell.

Playful-Ad9386

When high growth stocks goes down money rotates into boring stable dividend stocks in the SCHD. SCHD is designed for dividend and stability long term.

Playful-Ad9386

SCHD is designed to hold long term not to buy and sell.

Playful-Ad9386

SCHD is doing its job .

SoldToOpen

My SCHD shares have somehow made me more money than my VOO shares have since start of year

JerryMerrygold

I believe that SCHD has actually outperformed the market over its history. Not your typical dividend fund. Look into it.

CD274

How much capitol tied up in total for how long Then look at SCHD YTD 🤔

UpDown

And they were right. Young people should be in small cap value, and AVUV outperformed SCHD

Lecture-Motor

This question came up in another forum. I agree with the previous post a lot of it is investors moving into defensive holdings. Another thing to keep an eye on is 25-28% of SCHD shares are held by institutional investors. It will be interesting to see if those numbers go up going into Q4

Raiddinn1

Or you could just buy a broad market fund like VTI which does a mix of both with near zero downside... Personally, I like the idea of something like VTI while in the "Accumulation Phase" and something like SCHD during the "Distribution Phase" and have enough accumulated that you never need to sell shares and eat the principal.

MasterpieceMain8252

I remember beginning of the year everyone was shitting on anyone who owned SCHD how they don't need it at young age

Bitter-Basket

Since you don’t want to pull up graphs, here is the comparison of total return of two most popular funds over the last 15 years: Dividends (SCHD) 572%. SP500 (VOO) 728% Dividends eat share price. And SCHD is one of the best.

Syndicate_Corp

Look at the 5YR chart. 26 of the 36% gain over *five years* has been this year. The people who jump on it for gains are going to be pissed when SCHD's selection algorithm rotates out the big winners, as it always does. At its current pricing, it's \~3% yield which is historically pretty low for the fund.

jomi0403

Defensive rotation. People made lots of money on high beta stocks and they see cracks forming in the market so they rotate into defensive positions. SCHD is low beta so if you think the market is going to take a downturn it can be a decent place to put money. I wouldn't put my money there long term, but at the right time it can be good.

RubiksSugarCube

SCHD and chill baby

RubiksSugarCube

I assume that it's the upper decks that have been leading SCHD's 26.5% YTD climb, so guess I'll just jump on their coattails

Inviction_

I use my brokerage account as a savings account. People don't recommend that, but I don't see the big problem. The market could turn right when you need the money, and maybe you have to sell for a loss. But I've got older positions that wouldn't be a loss. Or even if it was still at a loss, I'd just be buying right back in as I pay myself back. One time I had to pull some money out, sold some SCHD, and by the time I was done buying back in, I had a better position than before. Besides, needing to pull from the brokerage account is a last resort. I've got precious metals I could sell as an alternative, less market fluctuation. I've got credit cards I can use if it's something I can pay back before interest gets charged. And just having a small surplus in the bank is enough for most things. I keep 4-5k in at all times because I'm too lazy to track when money leaves the account. So I just make sure there's always enough that all my bills could come out at once and I'd be fine. Having those other means to access money is what's key to using a brokerage account as your emergency fund. Just make sure you always pay yourself back. If you invest 1k a month, but you pulled 4k out a few months ago, don't just keep doing 1k, do 2k for 4 months. Or whatever works, you get the idea

Little-Revolution650

I’m typically an individual stock picker but I love SCHD! It’s one of my favorite positions. Reliable if not great return and good divide dividend payout. My fav individual stock for dividends right now is AXP.

Educational-Ad-4908

If you’re looking for high dividend stocks, you’re most likely better off owning SCHD and calling it a day.

No_Presentation9490

the SCHD $40 leaps i bought for $5.00 each are up 700% lmao

spilledonwhite

Moved 20% of 401k and Roth IRA into SCHD the past two days as a momentum play, shit is absurd and I want it to stop. You should consider puts, I'm good at killing rallies.

spilledonwhite

SCHD pe 20, VOO pe 26

EarlyBird001

I would say along with SCHD and VYM, check out VYMI and LVHI for global exposure.

RubiksSugarCube

SCHD now up 26.5% YTD with a 3.3% yield to boot

citygeek

At some point you get enough assets in enough places that perhaps you don’t need to leave it that unproductive. If it were me….i might slowly DCA a portion of it into lower beta assets. Things that go up more than inflation, but are less volatile than the S&P 500. Things like: SCHD, DIVO, JEPI, JAAA, JBBB, CLOZ Note, these can still go down in value, albeit they are much less volatile than the general market and are otherwise “easy to hold.” I think it’s entirely reasonable to earn a blended return of 6-10% on this money without sweating too much. At some point the best defense is a good offense. I’d still always leave a small portion in something like SGOV

InternalMachine5503

SCHD is a good dividend ETF to hold for steady growth and dividend return.

Chazzyboi69

you guys ever just look at the SCHD chart and smile?

Ruby_Rhods_Hair

SCHD is a compounding beast. Do some research on how fast the dividend per share doubles. And you're getting share price appreciation on top of that.

PurpleFilth

SCHD been pumping this year, strange for a dividend etf

Ahamadrayasbaboon

VIG is one of the best “dividend” ETFs along with FDVV. SCHD is one of the least bad ones. 

Sukhumvit_71

What are you talking about? A lot of dividend stocks and ETFs don’t experience any NAV erosion and some have decent growth. SCHD for example has grown \~147% in the last decade and pays a decent dividend.

lameducker24

Honestly, I have been playing with SCHD LEAPS and it’s been a solid profit spot. Each time it pulls back I hop into Jan 2028 calls and have done well there

No_Presentation9490

i bought SCHD calls at $40 strike for 5 cents each and they gained 700% LMFAO

empty-bensen

SCHD master race.

Kind_Conclusion1911

Me watching my cute little SCHD go up 2%. (This is the biggest daily gain I’ve ever seen it do)

jetpilot6969

SCHD headed up. Means dompy