SCHD: Dividends Are Still A Losing Hand
Summary
- SCHD remains poorly positioned for 2025, lacking exposure to tech and AI growth drivers fueling the S&P 500’s outperformance.
- Q1 data confirms underperformance: SCHD’s top 10 holdings grew revenue by 5% and earnings by 7%, versus 21% and 26% for S&P 500 leaders.
- SCHD’s focus on mature, dividend-paying sectors systematically excludes high-growth mega-cap tech stocks, creating a structural performance gap.
- Given persistent growth disparities and lack of innovation exposure, I maintain a 'sell' rating on SCHD heading into 2025.
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.
Not financial advice
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