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My resolve is not shaken
I've seen quite a few analysts of late downgrading or deriding the Schwab U.S. Dividend Equity ETF™ (NYSEARCA:SCHD). It failed to rally as much as the market did
SCHD: Calling Arthur Burns
Summary
- Schwab U.S. Dividend Equity ETF™ underperforms short term but remains a top long-term income vehicle amid rising rate cut expectations.
- Fed pressure parallels 1970s history; Powell may be replaced by a more dovish, rate-cutting Chair in 2026.
- Dividend ETFs like SCHD offer better tax-adjusted yields than cash equivalents in taxable brokerage accounts.
- SCHD’s downside protection, consistent yield growth, and energy exposure make it a durable cash alternative.
- Reiterated buy: Using SCHD as a liquidity tool with superior long-term income potential and rate sensitivity.
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and Fortress Investment Group.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD, VIG, VOO, DIA, QQQ 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.
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