What Israel-U.S.-Iran Military Conflict Means For SCHD

Millennial Dividends
7.69K Followers
(12min)

Summary

  • SCHD's increased energy sector exposure, previously a concern, is now a tailwind, amid surging oil prices, due to the Middle East conflict.
  • Rising geopolitical tensions have driven oil prices up 23% since May, positioning SCHD's energy holdings for outperformance and higher dividends.
  • Short-term market volatility is likely, but historical precedent suggests equity pullbacks during Middle East conflicts are often followed by recoveries.
  • Given the current environment, I am revising my outlook: SCHD appears well positioned in the near/mid-term, due to elevated oil prices and sector rotation.

Rear view of silhouette of soldier in military gear holds weapon against bloody sunset

TRAVELARIUM/iStock via Getty Images

In the past, I've always praised Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) defensive profile, exposed to mature companies with lower beta, particularly during periods of increased uncertainty, reducing overall volatility in one's portfolio, while relying on the

This article was written by

7.69K Followers
I’m a Financial Analyst at a Fortune 500 company, investing with a long runway—30 years to retirement and plenty of compounding ahead. I write about building a thoughtful portfolio that balances strong growth potential with solid fundamentals. My focus is on high-quality businesses, mostly in the U.S. and Europe—companies with staying power, industry-leading profitability, low leverage, and room to grow. I’m especially interested in portfolio strategy, capital allocation, and what makes a business truly worth holding for the long haul. Investing, for me, is about more than just returns—it’s a way to challenge my thinking, stay curious, and move steadily toward financial independence.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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