Thoughts on High yield dividend ETFs (SCHD)

US Market & Sectors
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1

Hi Vested fam!

In this very volatile and tariff-ied market scenario, what are your thoughts on entering SCHD : Schwab High yield Dividend stock ETF?

Some points from my research:

  • Delivered decent returns of ~11.5% CAGR in the last 10 years with less drawdowns when compared with SPY
  • Composite stock dividend yield close to 4% (very high)
  • After the recent ETF rebalance, stock composition has changed from finance-heavy to energy-commodities focused around US and these stocks don’t have any exposure outside US.
  • low expense ratio of 0.06%

If someone already has a tech-heavy portfolio, does it make sense to include SCHD into their portfolio? Or do you see any other alternatives which are more stable with lesser drawdowns?

Thoughts and criticism appreciated :slight_smile:

2

Solid research. But I think high dividend focus may underperform if rates stay elevated or rise further, as income-seeking capital may prefer bonds

3

Anyone tried monthly dividend etfs? This guy in youtube seems to be doing good. https://www.youtube.com/live/DpB8a2x-keI

However, looks like there are a lot of moving parts and not just a buy QQQ and hold.

Also if a company pays dividend does it get added to the vested account balance to Buying Power ?

4

Of ourse the paid dividend minus withholding taxes, gets added to the buying power. I have only held dividend paying assets. Schd , in my opinion is good. Also lvhd which is lower volatility dividend payer. Try a little hesm, a pipeline company, so lower risk and decent dividend

1 Like
5

Thank you :+1: