Market Volatility Builds The Case Why To Own SCHD

Millennial Dividends
7.38K Followers
(11min)

Summary

  • SCHD has faced negative commentary for lacking total returns, slow dividend growth, and relative poor performance compared to SPY and QQQ.
  • Despite criticism, the Fund offers a defensive balance with quality holdings that better withstand market shocks and outperform during economic recessions.
  • Schwab U.S. Dividend Equity ETF is a best-in-class, dividend-oriented ETF that provides a safe haven during turbulent times.
  • Market rout, spiking volatility, 3.6% dividend yield, and diversification away from Mag 7 are all reasons to add SCHD to one's portfolio.

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A lot of negative commentary has been recently published via articles and comments on Seeking Alpha on behalf of Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD):

  • Lacking total returns
  • Relative poor performance on the SPY/SCHD pair
  • Slow dividend growth

This article was written by

7.38K Followers
With 30 years until retirement, I’m leveraging my role as a Financial Analyst at a Fortune 500 firm to build a market-beating portfolio that targets both strong capital appreciation and aggressive dividend growth.My focus is on blue-chip companies with wide moats, competitive advantages, industry-leading market share, and profitability, priced at attractive valuations relative to forward growth across US and European markets."Beyond mere yield chasing, dividend investing for me primarily is about free cash flow."

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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