The Schwab US Dividend Equity ETF (SCHD) is recommended as a buy due to its unusually high dividend yield of 3.31%, which surpasses both its historical average and the inflation-adjusted S&P 500 CAPE yield. SCHD has a strong track record of growing dividends at over 11% annually for the past 5 to 10 years, enhancing its potential for alpha. However, investors should be aware of near-term risks including technical market weakness and sector-specific challenges from falling energy prices and persistent inflation. Overall, SCHD offers attractive valuation and growth prospects for dividend-focused investors.
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
The Schwab U.S. Dividend Equity ETF (SCHD) has gained 20% year-to-date, outperforming the S&P 500's 10% rise. SCHD focuses on large-cap companies with strong dividend histories and value metrics, avoiding mega-cap tech stocks that led recent market r...
