The #1 Dividend ETF for Every Investor (SCHD ETF)

⬇️ Timestamps:
0:00 → Intro
1:05 → Overview
3:31 → Dividend Yield and Performance
5:19 → Dividend Sustainability
7:35 → Ad Break
8:24 → SCHD vs VOO
10:11→ My verdict
12:14 → Conclusion

SCHD has had impressive historical dividend yield of over 3.5% plus solid capital gains each year. But as the saying goes, if it sounds too good to be true, it might just be. Let's examining everything - from its expense ratio and performance to dividend sustainability and how it stacks up against the S&P 500!

SCHD, or the Schwab US Dividend Equity ETF, tracks the Dow Jones U.S. Dividend 100 Index, including some of the largest U.S. companies known for paying high dividends and having a strong financial track record. These companies are essential to everyday life, offering products and services we all use, which makes them solid choices for a dividend ETF. Their mature business models often mean lots of free cash flow, enabling them to pay out dividends regularly.

When assessing dividend sustainability, you'll consider several financial metrics: average dividend yield, free cash flow payout ratio, and dividend coverage ratio may give you some clues whether they are capable of continuing their dividend payments.

Comparing SCHD to VOO, an S&P 500 ETF, we'll find out that they cater to different investment strategies due to their varied risk profiles. SCHD offers a focus on dividend-paying stocks with less volatility, whereas VOO leans more towards high-growth tech companies. So be clear of what you want before deciding which one suits you better!

In conclusion, while SCHD presents a strong case for dividend investors, especially those looking for consistent payouts, it may not suit everyone, particularly non-U.S. residents facing higher tax burdens. All said and done, let me know what you think!

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Disclaimer: This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

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[ZietInvests]

Do let me know if you’d like me to cover more ETFs like this one!

[jasonxjia]

Bro, ur videos are so informative, short and concise. One of my favourite channel. Keep it going. 👍🏼

[edwardong]

Well done. Keep it up Ziet. Was looking into this SCHD etf and you did a YouTube on it. Thanks. Learn a lot from you. Can you also share which app you use to check on the NAV return

[woodliao]

thku for sharing this ETF, Ziet ! SCHD is also part of my portfolio for long term stable stock for retirement ! i din know the two layer of tax but i guess worth it for stabilize and not so volatile for investor like me.

[ahmadrifqi]

Hey Ziet, awesome video yet again. Would you consider to review the Wahed FTSE USA Shariah ETF (HLAL)? There are many reviews on this but would like to get your thoughts on it. Thanks!

[dolfo]

Hi Ziet, I follow you since a time.. I am based in KL and you have made part of my live here.
I have a question on IBKR... what do you think on the fact that tehre is no Transfer on Death options for non-US residents? Carlos.

[LouiePomzo]

Hi Ziet, can you please explain to me how do we make money from our investment in growth etf vs dividend etf with the 30% WHT? I believe you can explain me better since im still trying to differentiate both specifically. Thank you so much 🤝

[ANON-yc]

Hi Ziet...ETF SCHD..Stock split 1 to 3, FED interest rate expected to be as low as 3.4 in 2025/26...good time to invest inti SCHD??

[royhuaijun]

Hi Ziet, as always fan of your work and thrilled that u covered this Etf. Can I know how they payout the dividend? Is it to the IBKR account or bank account?

[ljxmax]

Hello Ziet, is there an SCHD equivalent ETF domiciled in Ireland? I can't find one so I assume there is none?

[evas]

Thanks Ziet for the video !! And can you provide Msia ETF? Thanks again...

[lunakick]

Hi Zeit, can you please review a good clean energy US and Irish ETF?

[jackyinhere]

Ziet what's your general view of HDLV vs SCHD?
Personally am trying to avoid investing too much into the tech focus ETF for now and am looking to diversify into more non-tech dividend ETFs.
Is the extra tax from SCHD worth it?

[captainhook]

I'm interested in building a dividend income stream, but as a non-US citizen, I'm aware of the 30% withholding tax on dividends. I've been looking at SCHD, which offers both dividend payouts and potential for capital appreciation in the long run. i feel capital growth could potentially offset the withholding tax impact. Any advice or insights?

[chewsoonyi]

does ziet has a video showing where and how to buy ETF?

[saravanansabaratnam]

Hi Ziet, 1. how about making a video on Spore Reits ETFs 2. About IBKR- it's recognized in many counties but not In Msia- should this be a concern, honestly please...

[BasilLeaf-oc]

So what is your bottom line? Which is the best no US resident like Malaysian Dividend ETF in your opinion ?

[raymondlau]

SCHD has a historical 10 years dividend GROWTH rate of 11.39%.

So if I buy SCHD today at a dividend yield of 3.46% and deduct 30% withholding tax (non-US resident), I would get a nett 2.42% to start off with.

So using a compounding calculator, my dividend yield would be:

Year 5 4.15% Sad
Year 10 7.1% Not bad
Year 20 20.9% Nice!
Year 30 61.5% Wow!
Year 35 105.5% OMG!

While impressive, I would only invest in SCHD if I have $500k spare cash. Otherwise I’ll be better off with other companies or ETFs. It requires great patience to reap the rewards and it doesn’t hurt to live a long life too like Warren Buffet and Charlie Munger.

[jae]

What are your thoughts on exness brokerage?

[drbenirusani]

Does BURSA or Singapore have any ETF that gives good income/dividends? at least we wont get 30% taxed