SCHD
Schwab U.S. Dividend Equity ETF
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Would it be a bad idea investing in the same investments in a Roth IRA and a regular brokerage account?
VIG and SCHD, which one should be in my retirement and which one should be in my regular brokerage?
Hypothetical Margin dividend investing (currency exchange + loan)
Anyone in the know about Mission Square retirement(MSQ)?
Late to the party and new to dividend investing. Let me know what you think of my mix. I know I have overlap and probably too many, so any suggestions would be greatly appreciated. JEPI, JEPQ, JEPY, QQQY, SPLG, DIVG, SCHD and YYMI.
Investment choices for Backdoor Roth IRA from broker
What are some funds that are good for the long term?
Roth IRA investment, 45 years old, VOO AVUV SCHD .. Suggest me please
30 year old. What's got the greatest possible potential for returns? TQQQ?
Now that 2023 is coming to an end. Let’s hear your biggest loss story…
Dump in large amount or slowly add into holdings?
When opening a Roth is there any difference or benefit to opening one with a more traditional more established company (Fidelity, Jp Morgan, etc) compared to one like Robinhood?
Investing brokerage accounts for my kids and nieces - best course of action?
Will shit hit the fan in 2024?
What fund would you add to my portfolio to start easing out of bonds?
What are your thoughts on this Roth IRA portfolio breakdown?
100% VOO vs 33.3% VOO, 33.3% VUG, and 33.3% SCHD?
Should I buy Take Two Interactive stock low (company that makes GTA VI) and sell upon its release?
First time maxing out Roth contribution. Give me a super basic, set it and forget it, distribution
Why not sell VOO/SCHD type of holdings when they’re up?
If the price of underlying assets rise, does the price of an ETF like VTI also rises?
What foreign stock should I invest in my IRA?
Thoughts on investment portfolio that I'm considering?
50/50 SCHG and SCHD a good plan for 30/yo DINK (kids soon)
Instead of purchasing a home - investing in a high dividend yield stock?
Got Stuck Holding 220 TSLA shares at $296
45 y/o way behind/ mistakes made/ ex screwed me/ catching up/ should i give up
Are you planning a strategy change for nearing retirement?
Down 11% on taxable account. Planning on buying a house in the next 2.5-3 years. Should I sell or change strategies?
33% SCHD, 33% FSKAX ( Fidelity US Market Index ) 33% FSPSX ( Fidelity International Market Index ) at 21 years old for standard brokerage account?
How can I tune my portfolio in the future or now to help keep up good growth?
Why not S&P all the way? Why split between total market and the S&P?
Portfolio Review and Strategy in Times of Uncertainty - Seeking Advice
Just transferred my workplace 401k to a brokerage 401k and trying to make the most of it
2 year portfolio in my mid 20s any advice is appreciated.
23 year old looking for advice on where to place short term savings
I need a recommendation for a fund for the long term
Vanguard roth won't let me set up auto investment to SCHD
Mentions
you're right, but SCHD is also good when tech stocks go down. 1 month performance: SCHD: 7.54% VOO: 1.26%
SCHD beating SPY by 8% YTD. I didn't realize dividends were making that much of a comeback.
You don’t want SCHD unless you’re your old
Skip SCHD until you’re old
Nowhere safe that will match the currency devaluation unfortunately. You could look at SCHD or other defensive funds and go in on a divvy dip. SoFi is paying close to 5 on HYSA. Bonds are garbage right now but they have security if you’re looking for safety
Hi im 23 and want to start investing. I have $10,000 in saving and wanna start by investing $1,000 to “dip my toes in” this past week i’ve been researching about how to invest and the stock market. I’ve decided that I am ONLY investing in ETF’s and not individual stocks since i’m still new and inexperienced. Im looking for long term growth. Should I use fidelity or robin hood? I made a list of ETF’s I’m interested and I need help deciding which to start with and how much to divide my $1,000 between them. The ETF’s are VOO VTI VT VXUS QQQM SCHD VGT So far i have 2 portfolio plans. Plan 1 VOO QQQM SCHD Plan 2 VTI VXUS VGT
Hi im 23 and want to start investing. I have $10,000 in saving and wanna start by investing $1,000 to “dip my toes in” this past week i’ve been researching about how to invest and the stock market. I’ve decided that I am ONLY investing in ETF’s and not individual stocks since i’m still new and inexperienced. Im looking for long term growth. Should I use fidelity or robin hood? I made a list of ETF’s I’m interested and I need help deciding which to start with and how much to divide my $1,000 between them. The ETF’s are VOO VTI VT VXUS QQQM SCHD VGT So far i have 2 portfolio plans. Plan 1 VOO QQQM SCHD Plan 2 VTI VXUS VGT
Most of my $ is in a 401K with limited options (unfortunately). But I'm about 50/50 international / US. My international is DODFX (which more than doubled VOO the last 12 months). My US is mostly defensive (SCHD - I know you all hate it, but I like it, so don't bother telling me how dumb it is). Less the 10% VOO/QQQ exposure. I have rolled the dice, now let's see what happens... Anybody who tells you they have any idea is an idiot IMO.
SCHD is up lol- boomers win again
Disclaimer: I don't know what I'm doing. So I've been putting a large chunk of my investments over the past few months into SCHD, the thought being that investing in the SNP500 is basically just investing in AI tech, and if the AI bubble starts to pop, safer dividend stocks might go up as people seek a safer haven that still has growth potential. Maybe it's blind luck but so far it's been working pretty well.
SCHD fucking rocketing into the close people want safety
Plenty of stocks doing just fine today, BRK.B, BF.B KO, CVX, or if you prefer an etf SCHD Good day for businesses with robust cash generation power, not a good day for speculation
SCHD needs to stop pumping. I can only get so rich
I'm new to investment as well and consider myself being too late. I DCA IAUM $25, $25 VYMI instead of SCHD and $50 VT weekly on my ROTH IRA. Let's see how it is in a year. 😅
SCHD DVY HDV FDVV FDL Cumulative Yield is 3.5% dividend yield. And remember dividends grow . SCHD is my favorite . Dividend ETFs in retirement are the goal since if your goal is to retire off dividends and not deplete your retirement this is what you’ll need. The Industry as some would call it is a SCAM. You cannot withdraw 4% of your portfolio starting balance and match for inflation due to something called NEGATIVE SEQUENCE OF RETURNS RISK. If you are selling shares in a down market you’re screwed over time and depleting your shares . You’re literally killing the goose laying the egg. Vs Withdrawing the dividends and using that to live on and budget. And not selling a single share.
RH is the best place to learn. You will need a margin account. With LVL2 trading. Start with Cash secured puts and covered calls. If you can get LVL 3 trading then credit spreads. Stay away from futures and 0DTE trading both great ways to lose your money. But before you start trading. Buy into monthly paying Index based ETF’s. SPYI,QQQI are 2 good choices. IDVO for international funds. I’m 48 started trading and investing at 45. Not a lot of time to build a nest egg. if you want ultra safe places to keep your money. SGOV,VOO,QQQ,SPY,SCHD and VTI are all popular ETFS. SGOV is a short term bond ETF that pays monthly but you balance never changes until you either receive dividends or add more money. The rest are growth funds that pay quarterly dividends.
XMAG is literally that. Defiance Ex-Mag 7 S&P 500 ETF. Started in late 2024 and as you’d guess it has underperformed VOO, SPY etc. overall but last 3 months has outperformed, with some rotation out of the 7. Other ways to go are funds like SCHD - an dividend oriented equity fund which essentially eliminates big tech. And for me it was international developed and emerging markets, along with (too little) in precious metal funds.
SCHD holds exactly the companies people are rotating their money into right now. Glad I picked it as a hedge.
Why is SCHD pumping so much? I didn’t want to retire this early.
Yeah I’m considering TIPS but the yield is shitty and going down in the short term. If it’s looking like rates have bottomed I may buy some. Agreed about REITS, choose wisely but they will continue to pay, if you choose something with a long enough average lease. O would be perfect as a 10% allocation. SCHD is probably a good bet, a quality ETF. One of the ETF’s focussed on FCF (COWZ etc) and VGK. I’m also holding plenty of SGOV, JAAA, a bit of PCN, some emerging market government bonds. If tariffs are bazookered, taxes will need to go up and I’m hoping inflation will be DoA. We can all dream.
100K in boomer shit like SCHD. It’s energy heavy with a 3% divy. If rates go down people will move out of bonds. Plus energy needs making XOM come out of a generational breakout. Plus adds diversification if you have a tech heavy portfolio. Still leaves you with 400k to fuck around with 🤷 oh, and add DRIP
Will do - Thanks for the advice! There's a lot of funds to choose from but as you already know, I'm already invested in VT - I know some investors would choose more than one broad index fund for their portfolio, even including a bit of overlapping in them (I hear a lot of VOO + QQQ or even adding a dividend index fund SCHD & an international index fund VXUS into the mix. What's your take on these allocations?)
I'm trying to start putting money into my roth ira but don't know what stock to start with first. I have a list that could work like VOO, SCHD, VT, VTI, and VXUS, but don't know what to choose. I was also thinking adding in a monthly dividend stock in it down the road but what do you guys think ?
Tomorrow is the BIG DAY! Microsoft Earnings! The number to watch, Azure Cloud Growth. Scenario A (The Boom): Azure growth accelerates (due to Copilot AI). The stock pops. The "Risk On" rally continues. Scenario B (The Bust): Azure growth slows or AI costs are too high. The stock drops. Goldman sees: Outflows from Tech ($900M) and massive inflows into International (EM) and Cyclicals. So if MSFT falters tomorrow, get out of Magnificent 7 and into energy, and old economy value stocks., and possibly GOLD. My picks: VYMI, VDE, SGOL, SCHD, SCHG, SMH I sold all my Google today and took some of the upside of SMH. Tomorrow I will see if I was right.
TXN up 7% after hours which apparently equates to SCHD up 0.12% after hours 🗿
maybe you're in the wrong value SCHD is up 7% ytd
I'm relatively new to investing but I've always heard QQQ is not a good long term play because of its high expense ratio. Maybe trim that position? Probably don't want to hold cash because of the weak dollar but maybe reposition some capital to SCHD or VOO? Again, I am just some fool on the internet.
whats wrong with it? balanced portfolio and I've got SCHD instead of bonds.
He could get a nice house, throw the money in dividend stocks and ride the rest of his life in a country of his choice. At 3.81% sec yield SCHD would pay $952K a year and have $5 million for a nice house.
If you've got 10-30m, you're a fucking moron (or liar) if you haven't cashed out to something like SCHD and can just live off several hundred thousand a year. Buy a house, put in a gym, lose the weight and do whatever the fuck you want for the rest of your life. I mean I'm out whenever I hit 5M i can park in a dividend producing ETF and live off that sweet free money forever. If you've got 5x what I need to call it quits and you haven't done it yet, good luck to you. Also go to a psychologist and get tested for whatever you can get them to give you good drugs for. You've got something on the spectrum and modern science and medicine can help.
Sell everything today, put 10M$ into SCHD. Enjoy life. 360,000$ a year without touching capital.
What I’ve bought in order this year: house-gold-silver-SCHD and VGPMX
SCHD is not international and is a dividend focused fund
Diversify into some international holdings. International large cap outperformed the S&P in 2025. Not only is it a fine short term strategy, but allows for more diversification, but also more exposure to growth outside of the US. SCHD is a fine large cap international ETF that has low NER, and good performance.
You could. I’d invest in SCHD and DGRO though with that amount and just live off the dividends
Yes with international and value. Specifically value from SCHD and SCHV at a ratio of 2/3 SCHD 1/3 SCHV in that allocation bucket.
You would have made 5% on SCHD in the last month versus the nothing on most S&P indexes. If you don't know what that is, it's an ETF for grandpa dividend stocks.
First time my HYSA is out preforming for 3 months SPY. I’m usually bragging to the SCHD chat about this.
For your age - Whatever S&P tracking fund you have access to. SCHD is garbage
I’m 27. No real savings until now, no investments until recently. I make about 3k MYR (gross) a month, plus I do e-hailing part-time (\~60–70 MYR/day). I have some debt (car + ShoppePayLater) but it’s all autopay within my \~1.5k monthly commitments. I also have \~2.5k MYR parked in Tabung Haji (Low risk savings account \~4% yearly dividends) as an emergency buffer. I’ve set up a plan to start investing aggressively while still building my emergency fund. Right now, I’m splitting 1,500 MYR/month: * 750 MYR - Tabung Haji (emergency fund) * 750 MYR - brokerage account (using MooMoo) , buying **VOO 70% + SCHD 30%** Extra Grab income goes 100% into the brokerage. The plan is to grow my EF to \~12k MYR in parallel, then flip all contributions into investments. Long-term goal: build a **dividend + growth portfolio** that snowballs. I’m disciplined with my commitments, have a modest monthly spendings (\~700 MYR/month), and plan to gradually increase contributions as income rises or debt obligations decrease. So I want to hear from people: * Does this portfolio plan make sense for a 27-year-old starting from scratch? * Would you stick to **VOO 70% / SCHD 30%**, or would you choose something else? * Any advice on accelerating the snowball effect safely? I want to get opinions and perspectives so I can refine my plan without second-guessing every month.
I’d switch to SCHG for maximum growth or SCHX for a blend with a still decent dividend. SCHD has underperformed for a while now and seems antiquated
CDs or ETFs for three children? I am a single dad, one year out of a marriage with a partner who did not value saving money at all. I'm a little late to the game (early 40s) but so far I've got $10,000 in a 401(k) that grew about $3K this year (I have the risk slider at 7 out of 10) with max employer matching and a $1500 emergency fund. With my tax refund coming up, I was wondering if it would be better to set aside $1000 for each of my children (ages 13, 11, and 8) into a CD, or if I should just dump that into ETFs like SPYI. My 13 has a head start, with a portfolio mostly consisting of $400 worth of SPYI, SCHD, and SCHG. Any advice would be appreciated. Thank you.
CDs or ETFs for three children? I am a single dad, one year out of a marriage with a partner who did not value saving money at all. I'm a little late to the game (early 40s) but so far I've got $10,000 in a 401(k) with max employer matching and an emergency fund. With my tax refund coming up, I was wondering if it would be better to set aside $1000 for each of my children (ages 13, 11, and 8) into a CD, or if I should just dump that into ETFs like SPYI. My 13 has a head start, with a portfolio mostly consisting of $400 worth of SPYI, SCHD, and SCHG. Any advice would be appreciated. Thank you.
nothing wrong with going 100% VOO (or any other SP500 equivalent) If you want even more diversified $IWM is top 2000 companies if you want a little more high risk (but still well diversified) $QQQ is top 100 companies. For something a little more conservative yo could look at a Dividend ETF like $SCHD
I also have a big position in SCHD, but I think it stands to benefit a lot from sector rotation as tech and growth seems a little over bought.
Voo with SCHD and reinvest your dividends .
you can have multiple IRA for 401K but you can only contribute to the one from your current employer. You can also have more than one personal IRA but you total IRA contribution is limited to $7500 per year, Converting To a roth IRA is probably you best option. But I would use SCHD in it I would instead use CLOZ 8% yeild. The cash dividend for 100K is $8000 per year. Or you could use QQQI 13% yield which would generate 13K A YEAR cash inflow into your account. So even if you cannot contribute money to the cash will still flow into the account.
Here is my stack since 12/29/2025 SCHG 45% SCHD 25% SGOL (Just bailed after making 6%) SMH 20% with a 15% Trailing Stop GOOGLE with a 10% Trailing Stop (totally speculative, I think they are going to own AI after the bubble bursts, probably going to sell and wait until the next dip) SGOV (Parking cash here for dollar cost averaging and buying dips) VYMI (Just sold after making 2.5%) COF (Bought it when dropped 10% on Trump's push to 10% APR on Credit Cards, already made 3%, did a sell to cover) The S&P returned 1.5% this year and I am already up 3.5% I am not going to VOO and chill. I am going to be aggressive, buy the fear like COF, chase the SEMIs, and chase the growth with SCHG then use SCHD to keep plowing dividends back into more cash and stock. So far I have beaten the market nearly every day of the year (NASDAQ, DJIA, S&P 500) including today which they were all down and I was still up .07% I am not fanatical about it but watch it at least every couple of days and trade at lunch based on news. My goal is to hustle 20% or better this year and I have 16.5% to go and 3.5% just at Jan 16th isn't too bad. My macro investor friends keep screaming about the Schiller Cape and are predicting a crash around August-December timeframe 2026. Everything is so dynamic right now it scares me a little.
See, I believe money is everything and it’s all I want. If I had 2M right now I could put it in SCHD and never have to work a day in my life and live life on my terms. I feel like a slave having to give up the best hours of the best days of my life to pay my bills
I would’ve done SCHG SCHD VTI
Park most of that money in SCHD or something and live comfortably. That's my goal once I get enough built up.
SCHD finally having a good year thanks to oil
I'm lowkey kinda hoping for a quick dump and recovery because for once I'm mostly in SCHD
Well i dont know the allocation percentages but what i can work with this. Id negate VXUS. Ill meet you in the middle. Nows a great time to start your DRIP snowball with a dividend ETF. SCHD is always a great choice but because it appears you want an international (minus US) ETF, id say VYMI. Solid growing international dividend etf minus US with div. stats comparable to SCHD. Otherwise, i wouldnt overthink what youve got. 3ish decades from now id like have this portfolio looking like this: 75% VOO, 15-20% SCHD/VYMI. 10ish% individual stocks.
I didn't say it was. I was just saying having some percentage of SCHD is fine, because it's less volatile than owning growth stocks.
SCHD is for someone who is 74 lol. Should be in VTI / VOO + growth picks.
Personally Alibaba for me.. already up 66% for me and has been my one of my best portfolio performers in my portfolio since I can remember and one of my earliest buys. (Started investing on my main platform in 2018) I think Baba has a big upside especially considering their price in the past. Stag a real estate reit I really like that offers monthly dividends and has performed well. I think reits have been beaten down so hard that they offer great value. ARE and O are other goods choices. SCHD 24% of my portfolio low cost ETF offering dividends and good defensive stock
I sold all my SCHD about 3 years ago because it was stagnating. Consider looking at other options.
I like SCHD because by definition it must be holding companies that actually make money
SCHD or SCHG. Both ETF and are in the $30 range. Don't try to predict the future. Be smart with your money. I'm in SCHG now.
Look into it. Most brokers, I use Schwab and Fidelity, treat treasuries as cash. So if you buy a 2 year for 3.55% yield you maintain everything you spent on that Treasury as collateral. Or margin. Whatever you want to call it. So find a stable fund like SCHD and sell a put a year out about 20% OTM. You'll get maybe a 0.3-0.5% premium to add to your Treasury.
SCHD hit $29 today and hasn't corrected, the alarms are blaring my guy
If you think you are overweighed in the Mag 7 you can always pick a few individual stocks or an ETF like SCHD or pick one that focuses on a specific sector. I like SCHD because it's value stocks that are a hedge against AI and will do great if the AI bubble pops. Just food for thought.
Idk man, money seems to be everything. Maybe I say that because I’ve been poor my entire life. All I want is $2M in SCHD shares so I can live off the dividends and never have to work a job again unless I want to. Money buys freedom, and that is what I’m after. I just feel like a slave having to take orders from my boss and have no authority or autonomy. I feel trapped. I’ve been applying for jobs but never get callbacks
I would sell all my SCHD first thing tomorrow
Then I would sell SCHD and diversify into VXUS. 100% of SCHD is in VTI, so no need to have overlap.
If it were me, I’d sell the SCHD and buy international etfs like vea, veu, or vxus as a hedge. You already have Vti so you already have plenty of exposure to us equities. Those three tickers are currently beating the s&p500 so take it for what it’s worth.
This sub and other investing subs hate SCHD for anyone who isn’t almost dead. But if you go over to r/dividends or whatever and everyone says you are stupid to not buy SCHD because it’s the mostest bestest things ever. I’m 38 and have a good bit (for my modest self) of SCHD in my Roth. Way I look at it is last week I put in my $7500 to max out my contribution for the year. But my SCHD PORTION (capitalized for emphasis, oh and it’s about 20% of my Roth) will contribute an additional $1700 this year for me. Maybe I could guess the next small cap winner and make a bajillion dollars hairs next week but man I think it’s cool to get the ball rolling early on some dividends. Yea it’s been flat through 25’ but that means my ~ $1600 last year in dividends bought more for me than it otherwise would have. I like to look at what companies are in etfs and there’s a lot of companies I interact with on a daily basis on SCHD. I don’t see them going away in my lifetime or my children’s lifetimes.
Your investments should have a purpose. What was the initial purpose of your SCHD holding? For what it's worth I feel like one flavor of equity for another isn't great strategy for rebalancing fuel. Broad equities versus say long bonds? That might be something. And 1.5% isn't really much of a dip. I wouldn't chase that kind of thing.
This is why I added SCHD to my portfolio. Not for the dividend. Holds a bunch of those companies. Damn thing is 1.25% up while SPY is 1% down. It's been my best performing ETF since I bought it in December.
SCHD, RKLB, and CIFR keeping my port green today.
Oh you want to be holding assets 100%. Personally I've tried to diversify my accounts to offset major downside risks, while raking in gains from precious metals. I'm holding VEU, IAU/GLD, GLTR, mining companies, S&P index funds, SCHD, defense etfs (including foreign ones like KDEF and EUAD), BRKB, SOXX, and large cap growth mutual funds.
You are over exposing yourself by choosing VTI and VOO since they share similar holdings. Personally I'd keep VOO but either works, swap QQQ with SMH unless you want less volatility but since you're pretty young I would go with SMH. SCHD isnt bad but if you want more growth given your age again I would go with SCHG or add VXUS as well for international exposure.
SCHD and JEPQ are gonna pop next Monday when Aaron Rodgers' financial guy pivots him over to dividend income.
I’m 30 years old (USA) and planning to start investing for long term. I already do around $1000 in 401K (company matches around $600), have 6 months emergency fund in HYSA, 30k in Robinhood in stocks, options and some etfs. I wish BUILD something for my long term (10 plus years outlook) - planning to start with $2000 per month in ETFs. How do this look : VOO - 30% QQQ - 25% SCHD - 20%
To many mistakes for like 2 years in the row it’s like no luck 🍀 lol starting with BTC 1.4 BTC in 2021 I spend about 5k to buy is and sold it in 2023 when drop around 25k lol it’s crazy 🤪 second time did with the weed stock when liberals win at the presidential I bough low and after jump like 3 times but I sold like 10% profit crazy me, and third is NVDIA and Palantir SOFI I had 120 NVDIA in 2022 before the split and sold it lost coz I was worried will drop like usual before the split, Sofi I had like 630 shares at 4,85$ was waiting for 2 years to run and sold it at 8$ because I was tired of waiting and palantir sold it around 11$ and I bought around 9$ my worst trading ever, I know for some people that is not lot of money but for me was lot of money and I was so scared to not lose the money so put your money in ETF best choice so u can sleep 🛌 with no worries, my best investment in VTI QQQ SCHD I can relax and no enjoy life with no worries about anything
I suggest checking out the link above which lists many different portfolio strategies, and then use testfol.io with 2000 - 2010 year range to find the allocation that works for you. There are many different ways to build, and bonds may not have to be a large part as long you use other assets to balance the stock portion out. E.g. this portfolio has no long term bonds, only intermediate, but still has very good risk-adjusted returns. https://portfoliocharts.com/2018/10/01/try-a-modern-spin-on-a-classic-idea-with-the-pinwheel-portfolio/ As for SCHD, I know some people swear by it, but personally I am not a big fan. If you are curious, falling interest rates have pushed a lot of BDCs down, like MAIN and ARCC, even though they have very respectable total returns. Might be worth checking out.
yeah I'm heavy in SCHD. that is my 'bond' play
I should have noted that 20% of my U.S. holding are SCHD. Not a huge bond fan.... but I do know I need to move into them. It's just with the $ devaluing, long term bonds are a bad call right now.
Because past performance is not an indicator of future performance. VOO has grown 620% so does that not leave ‘200%’ potential growth on the table in comparison for SCHD Haha.
you can look this stuff up online. Broker screeners, Trading View, Morningstar (check your public library database subscriptions). TradingView is free, just has annoying ads. You can go to the stock screener, click on the Dividends tab, and play around. There are also dividend funds BTW. SCHD is a recommended dividend fund. Beware of tax consequences of trading and dividends. Unless you're very safely investing inside of a retirement account and not withdrawing the money, you have to deal with taxes. as usual, do your own research. There's a dividend subreddit: /r/dividends
The long term growth of SCHD vs VOO, including dividends, when viewed on morningstar shows a range from 2011 to current. In that time, SCHD has grown 427% while VOO has grown 620%. There was a brief span of time in 2022-2023 where SCHD had grown more, but other than that VOO has essentially stayed on top. I'm not sure why you think that behavior is expected to change in the next 15-20 years.
Now I have 2 ETFs, SPY/SCHD and 5 single company stocks that I have specific P/L goals and purposes for.
SCHD is actually a fairly good factor play and is expected to outperform the S&P over 15-20 years based upon the expected risk premia in its factor exposure. It could probably do with exposure to midcaps or small cap value though.
Oh, if we are limiting discussion to SCHD, brute force selling VOO shares will win every time, there's no question here. SCHD is not a good investment imo. I went single company as an example of quality dividend stock. In income community both MAIN and ARCC are as well established and known as VOO or VXUS in index investing. My point was that it is not hard to create an income portfolio using BDCs, CEFs, and/or MLPs that will provide sufficient income. If you are interested, I can replace the ticker with an income CEF that will produce similar results.
Op asked about SCHD (which some of my links did use), you went single company?
>When stock pays dividends, its management strategically decides which part of the earnings and assets to use to pay out. There's a reason dividend stocks recover within days after ex-date: all of its income producing assets are untouched. Even with this, a dividend approach may not be the best even during withdrawal phases. Several months ago I ran a "test" on a few dividend funds (VYM and SCHD) compared to US total market (VTSMX) during the withdrawal phase ($500,000 initial value, $5,000 a month withdrawn, dividends reinvested). I've pulled those back up and now added a few additional models (two adjust the start date for my VYM test to match SCHD inception, plus one for each in a 60/40 stock to bond ratio). In all tests the dividend fund either was exhausted before the regular index or as of today doing worse than the index but both still going (often spending little, if any, time above the broader index). * No bonds, US total vs VYM (since VYM inception date): https://testfol.io/?s=egXkcaW4uyd - VYM fully depleted months before VTSMX * No bonds, US total vs VYM, adjusted to SCHD's inception date: https://testfol.io/?s=eREY7dkTXnF - both survive to this day, but VYM is worth far less than VTSMX * Same as bullet 2, but 60/40 stock/bond: https://testfol.io/?s=gh1QzwYfooG - VYM may not even finish the year unless it has massive gains * Same as 1, but using 60/40: https://testfol.io/?s=3QcRhLZfmwn - VYM depleted first again * VTSMX vs SCHD (limited to SCHD inception), no bonds: https://testfol.io/?s=a9RozZvpcQG - SCHD worth roughly 2/3rds of VTSMX * Same as bullet 5, but 60/40: https://testfol.io/?s=8C9h1vXaHLI VTSMX in much better position here as well
Right you are correct… I think your point is “everything” has a dividend? To your example NOBL didn’t break 10% last year and an expense ratio 10x VOO. NVDA’s 4 penny dividend is only to qualify for funds that require it. My point was to long term, high dividend investments will not keep pace. SCHD vs EQWL for example.
Does your return on SCHD of 236 include dividends too?
If you own VOO you pretty much do own SCHD. Most of the companies in SCHD are in VOO
Sure, but your question was about why people would invest in SCHD