Charles Schwab: Snowball SCHD to Live Off Dividends

Charles Schwab: Snowball SCHD to Live Off Dividends

Investors looking to harness the power of dividends for a stable retirement might consider the Charles Schwab U.S. Dividend Equity ETF (SCHD). Renowned for its robust dividend yield, SCHD operates with a methodology focused on high-dividend stocks, making it a top contender among dividend ETFs. Its strategy, rooted in dividend consistency and financial health, aims to snowball returns through reinvestment and dollar-cost averaging. With a detailed SCHD review revealing a mix of strong sector allocations and prudent stock selections, this ETF stands out for those planning to retire off dividends, providing a steady income stream in the investor's golden years.

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DISCLAIMER
We are not licensed financial advisers. These videos are intended for educational purposes only. No official financial advice is being given. Please always check with a licensed professional before making any investments or financial decisions. Your investments are your sole responsibility, and in these videos, I merely share my own opinions with no guarantee of gain or losses.

[BrewerVera]

Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

[tonysilke]

Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!

[Ericbabacan]

Dividends from SCHD are typically taxed at the qualified dividend rate, which may be lower than ordinary income tax rates for many investors. However, the main focus for markets now is Nvidia, which has powered a large chunk of the S&P 500’s recent earnings. Nvidia’s stock, up more than 90% this year, rose 2.5% in New York on Monday, sending the Nasdaq 100 index to another record high. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[theTeslaking]

Given reduced inflation signals and as the Federal Reserve has halted rate hikes, what are the best additions for a $120K portfolio to enhance the overall performance of my portfolio this year

[RichardCharleseo]

What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.

[Frozenwinter]

To anyone starting out, it may seem daunting when videos like this use an initial investment of 20k and 1500/month for the example but don't let that discourge you. The best time to start investing was yesterday, the second best time is today. I started off with just $165 to invest and could only contribute 300/month. But through working hard, paying off high interest debt and discipline I've increased that amount. You can do it to.

[AminaCasazza]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[christinamare]

I put in an initial investment of just over 20k in SCHD and DCA $400-500 monthly. Any additional lump sum gains from other investments will also go into SCHD. Once/if I have secured my position in SCHD, I plan to start investing in VGT.

[hakalamusic]

just hit 500 shares of schd, sleep well at night knowing my retirement is now automated.

[wn]

$1, 500 a month is not starting small for the average person.

[yvelf]

$1, 500/mo...yep, its a mortgage and a car payment...thats $3, 000 and i havent paid for utilities or anything related to my kids...
not everyone has that left over cash to invest. most are very luck if they have $500/mo to invest.
its best to start when youre young and be disciplined about your periodical contributions.
i bought enough of $SCHD for the DRIP to be at least 1 share (its my rule of thumb). that way the snowball effect is seen much faster.

[AsianVideoGamer]

Comments aren't what they used to be. So many bots

[R._L.]

9:12... _"With an annual inflation rate of *2%*..."_

You may want to check on that inflation figure again: It has been *much higher* for years now.

[Andy-is]

I read that the projection for Schd is 6 % from EPS and 4% by dividen and 6 % CAGR going forward and growth has slowed down with the reconstitution. What are your thoughts on this projection by factsheet?

[dustinshirley]

I like a blend of SCHD, SPHD, and a few reits. SPHD pays quarterly, so despite being probably slightly worse than SCHD, the extra compounding will make a huge difference over 15 plus years. Additionally you always want to diversify payouts, as well as ETF’s even if they are very similar.

[Bumeism]

That rate of return of 11.6% is not realistic and should not be counted on as reliable. The sp500 has rate of return of around 10% not adjusted for inflation.

[malikbeluga]

2 year returns
QQQM - 55%
VOO - 31%
SCHD - 1.4% including dividends

Glad it’s only 15% of my port but what a pig

[roadzy]

What program does this drawing? I’ve seen it more and more in videos.

[dwade]

"Starting small"
*1500 a month* ⚰️

[simplyjeff]

Can you share the program you use to make these videos? I would like to replicate it for my policy class in college.