SCHD: The Perfect Blend Of Yield And Growth In A Rising Rate Environment

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Steven Fiorillo
23.63K Followers

Summary

  • Standard equity dividend ETFs aren't as attractive as they were in 2021 as larger yields can be found in CDs or T-bills.
  • SCHD provides a perfect blend of yield and prospects for capital appreciation which could be more enticing than 4.5% yields from traditional investments.
  • SCHD has outperformed SPY over the past 5 years and has a total return of over 80% when its dividends are factored in.
  • I do much more than just articles at Barbell Capital: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Financial and business background for Stacking of money coins. Savings and Accounts, Finance Banking Business Concept Ideas, Investments, Funds, Bonds, Dividends and Interest.

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The Schwab U.S Dividend Equity ETF (NYSEARCA:SCHD) has been a favorite among investors for many reasons. Prior to rate hikes, SCHD offered a considerable amount of yield in a yield-starved environment. Now that the tide has turned, and investors can generate

Price

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Dividend Yield

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SCHD

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SCHD

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ETF Total Return

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This article was written by

Steven Fiorillo profile picture
23.63K Followers
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha or https://dividendincomestreams.substack.com/

Disclosure: I/we have a beneficial long position in the shares of SCHD, VYM, SPYD, AAPL, CSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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