News about SCHD

The article compares holding a $945,000 income portfolio entirely in SCHD, entirely in JEPQ, or split evenly between them. Based on forward payout rates, moving everything from SCHD (3.10% forward yield) to JEPQ (11.57% forward distribution rate) would lift projected annual income from about $29,318 to about $109,306, roughly $79,988 more a year. JEPQ's high payout comes mostly from option premiums that rise with Nasdaq volatility, so monthly income varies and upside is capped, and its payouts are generally taxed as ordinary income. SCHD offers steadier quarterly dividends from established companies with a history of dividend growth. A split between both funds would generate about $69,312 a year, a combined yield of 7.33%.

After roughly three years of AI stocks dominating the market, money is starting to rotate into other sectors, and the Schwab U.S. Dividend Equity ETF (SCHD) is up 26% over the past year, excluding dividends. The fund tracks the Dow Jones U.S. Dividend 100 index, keeps technology below 10% of holdings, and is weighted toward healthcare (20.7%), consumer staples (20.4%) and energy (14.1%). The article cites a 3.2% yield, a 0.06% expense ratio, a blended price-to-earnings ratio under 20, and a distribution increase of over 550% since its late 2011 inception. The author suggests the ETF could be a smart portfolio move regardless of what the AI trade does next.

The Schwab U.S. Dividend Equity ETF (SCHD) is up 21.7% year to date versus 10.9% for the Vanguard High Dividend Yield ETF (VYM), and yields 3.2% compared with 2.4%. Its strong return is largely due to a 14.1% energy weighting, well above the S&P 500's 3.4%, as the energy sector gained 50.2% this year, although SCHD has cut its energy stake from 23.9% in late March. SCHD rebalances quarterly with a 40.6% portfolio turnover rate and now has heavy weightings in healthcare (20.7%) and consumer staples (20.4%). VYM, by contrast, keeps its largest holding, Broadcom at 6.9%, even though Broadcom's yield has fallen to 0.7%, and has more balanced sectors including 21.1% in financials and 13.7% in technology. The author argues VYM is the better long-term buy because its broader mix includes sectors that tend to grow faster over the long term.