This Dividend ETF is Considered The Golden Standard For Dividend Growth Income! 💰💸

Описание: The King of Dividend Growth ETFs! This Dividend Growth ETF is Considered The Golden Standard For Long term Dividend Growth Income #Dividends #ETFs #FIRE

👉   • From $0 to $250,000 (7 Years of Dividend I...   : Where we are at in our current dividend journey.

⌚ Time Stamps so you can jump to any point in the video
►1:47 - Why Dividend Growth Investing is such a popular investing strategy
►2:09 - 6:48 - Review of SCHD Schwab US Dividend Equity ETF
►6:48 - 8:34 - Examples: of How $10,000 Invested would grow!
►8:35 Final thoughts and cons regarding this investment

Reviewing ticker symbol SCHD (Schwab US Dividend Equity ETF)

Article from Seeking Alpha: https://seekingalpha.com/article/4435...

The Schwab U.S. Dividend Equity ETF (SCHD) is arguably the leader in the dividend growth ETF space. The underlying index applies many of the same rules dividend investors will apply. The companies that meet the stringent requirements are a group of dividend-growing stocks poised for future growth.

The Schwab U.S. Dividend Equity fund holds 100 companies that meet qualitative and dividend-centric metrics.
Shares yield 2.7% and cost only six basis points.
Add additional holdings around the edges for a well-rounded dividend growth portfolio.
Current valuation looks expensive, but should do well long term.

SCHD passively tracks the Dow Jones U.S. Dividend 100 Index. Here's the overview direct straight from the prospectus:

Represents 100 high dividend-paying U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios.

Now to be considered for inclusion, stocks must pass three initial screens:

A minimum of 10 consecutive years of dividend payments (note that does not mean consecutive growth).
A minimum market cap of $500M.
A minimum average daily trading volume of $2M.
After those initial screens are performed, the result set is sorted by dividend yield, and the top half of stocks are kept. Now, each stock is ranked by four fundamental metrics.

Cash flow to total debt
Return on equity
Indicated dividend yield
The five-year dividend growth rate

Current holdings will remain in the index as long as they stay in the top 200 rankings by composite score. So it's possible the index doesn't change in the annual review. That said, the turnover rate is 43%, so, in reality, plenty is changing each year. After that, the index will add companies until they reach the target of 100 holdings. If two non-holdings have the same score, the index will select the one with the higher dividend yield.

The index is re-weighted quarterly, and a capped market weight approach is used. No single stock can be more than 4.0% of the index, and no sector can represent more than 25% of the total index. The index rebalances at the end of March, June, September, and December after the quarterly dividend payment.

Over the past five years, SCHD has performed exceptionally well, running essentially even with the S&P 500. Under the backdrop, SCHD typically has a yield somewhere between 50-100% higher than SPY (currently 100%).

Competitors
In the broad, dividend-paying ETF space, SCHD has several competitors. I'd argue there are few drop-in replacements. Some of the closest competitors include the iShares Select Dividend ETF (DVY), Vanguard Dividend Appreciation ETF (VIG), Vanguard High Dividend Yield ETF (VYM), and the SPDR S&P Dividend ETF (SDY).

Risks
SCHD has a 0.94 correlation to the broader market. If markets fall, SCHD will fall closely with it. 2020 was a great breeding ground for seeing the risks funds face. During extreme market turmoil, this fund may fall substantially again. The market (and SCHD) experienced a 30% drawdown in a month to then miraculously finish up for the year.

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