SCHD’s Uncomfortable Truth for Dividend Investors

SCHD's recent underperformance isn't too concerning, but there is something else to be aware of with this popular dividend ETF. We did a deep dive on SCHD's holdings and where the fund could be headed next.

Thanks for watching!

[RB-jeyj]

Currently own 5k shares of SCHD! This is my retirement fund plus 500 shares of VGT! It's all I need!

[katiem]

Really good video, Brian. As a holder of SCHD, Im more interested in safety and stability rather than high growth. Appreciate you taking the time to do this.

[HoldTheLine]

I own SCHD. It is a good fit in my portfolio.
Also, if people complain about it then they don’t know what it buys and how.
That’s the problem…people won’t read and do their homework.
I like how they select the stocks, quantity, and low expense costs.

[thare]

I own SCHD as I like to sleep at night.

[razzbuddy]

When I first subscribed to SSD a few years ago, you were kind enough to give me a call and asked about my reasons for subscribing. I honestly gave a reply that I’m embarrassed about today but my answer was to follow my dividend stocks through your system for a year and verify things in my portfolio to give me confidence in my approach. I did not intend to renew and thought once I thought my portfolio was on point I could put myself in a set it and forget it mode. Needless to say, I am still a subscriber and indeed my holdings are no longer set it and forget it even though I work to keep a low turnover rate and have that as my goal. SSD goes a long way to giving me confidence as an amateur retired investor that gives me much more back in value than what I pay in subscription.

[PauleAraiza]

initially did the big ticket buy, 125k into SCHD, 75k TSLA, 25k VYM, 25K VUG. Now I'm dca buying roughly 2k every week of whatever is on sale, and looking to add more tech positions to my portfolio. I'm looking to hold long term 15 - 20 years, so hopefully my lump sum buy in doesn't bite me in the ass long term.

[RichDiaz-hw]

I own SCHD and DGRO. Also a handful of dividend stocks.

[JAVAR]

SCHD's synthetic dividend growth is based mainly on a buy low sell high concept. But this not only happens during the yearly reconstitution but also the quarterly rebalancing. So for example, LMT and ABBV might be pared back in Sept to 4% and that profit would be allocated to stocks that have gone down like CVX or VZ which have a higher yield than LMT and ABBV.

[atl]

I love SCHD and currently own 604 shares. I do buy shares regularly but I also love growth stocks/ETFs and buy those also. I’m a bit more focused on growth right now but plan to eventually sell those off and replace them with dividend paying value stocks/ETFs.

[joshhotz]

I currently have $46, 000 in SCHD with 25 plus years of investing to go, I think I’m off to a pretty good start!!!!

[loakland]

ThanX Brian... Great video.. Long SCHD.... pair it w/ DGRO and JEPI for some cash - Retiree here.... Thanks for your informative & quality videos along with SSD which is excellent for any dividend investor or watcher.... Please be well....

[Sandlapper]

Nice work Brian! I appreciate Simply Safe approach to investing.

[lowp]

A back test of 50/50 SCHG and SCHD has performed like the S&P 500 with a higher yield.

[IronKneeClimbing]

I choose SCHD as my bond equivalent. I've been very happy with that choice for stability and increasing dividends each year.

[davidmoolekampcpa]

Great video Brian. I'm a long term holding of SCHD so very timely as well. Wish they would have kept AVGO but understand the rebalancing.

[joec]

Hey Brian, I've been following information on your website for years now. It's nice to see you starting a YouTube channel. Thanks for sharing your thoughts on SCHD.

[thorsten]

Fantastic deep dive!

However, I stick to individual stock picking which is made pretty comfortable because of Brian´s dividend one stop service!

[colbydodson]

I’m up 18.31% as of February 23 not including dividends and feel super safe. This is a well managed fund and everyone should be involved. 😘

[JohnBean-hmsm]

As usual, a great video! To the point and addressing the pro's and con's of SCHD.

[tulsatom]

Paid Subscriber Question: I see that you pulled SCHD up in Your - “Play Portfolio”, and that there are both an ‘Import’ and an ‘Add’ to build that (Play Portfolio);
- Did you Manually Build that SCHD Portfolio ( by Add)
- Or is there a way to ‘Import’ the Holdings of Core ETFs like SCHD, DGRW, MOAT, etc?
( So that we SUBSCRIBERS can Monitor and Evaluate the Holdings in our Core Holdings in addition to the Evaluations that we make on our Satellite or Explore Individual Holdings (stocks)
Thank you for your time and kind consideration in responding . . .
* BTW: Isn’t it tiring and impractical for people to compare SCHD to ‘the Market’ (S&P) when that is not really SCHD’s Benchmark or, more importantly - not the reason that people diversify and/or hold SCHD. Frankly it is to build a more conservative and INCOME producing Portfolio like alternate 80/20, or 70/30 portfolios or ETFs - like FBALX.
* Someone with substantial holdings could - live off of the Income produced by Dividend Growth Portfolios and watch their capital increase for a legacy/family portfolio that weathers the market better and, in addition to funding retirement - is able to fund vacations with grandchildren, their college, weddings, and first home down payments. Aren’t those the goals and objectives of Dividend Growth Portfolios?