The Stock Watcher
Sign InSubscribe
Breaking News

Is SCHD a Good Investment for Dividend Growth?

Share this article

Evaluating the potential of the Schwab U.S. Dividend Equity ETF (SCHD).

description: an anonymous image showing a graph with an upward trend, representing consistent growth in the investment.

The Schwab U.S. Dividend Equity ETF (AMEX:SCHD) is one of the most popular dividend ETFs available, and for good reason too. Launched on October 20, 2011, this passively managed exchange-traded fund is designed to provide a broad exposure to U.S. companies that have a track record of consistently paying dividends. Both of these ETFs have garnered the attention of investors for years.

Dividend Growth investing made sense for retirees when short-duration bonds yielded next to nothing and valuations were reasonable. SCHD offers investors an opportunity to participate in the growth potential of dividend-paying stocks while mitigating the risk associated with individual stock selection.

When comparing SCHD to similar ETFs, it's worth considering the Vanguard S&P 500 ETF (AMEX:VOO) and the Vanguard High Dividend Yield Index ETF (AMEX:VYM). These two ETFs, along with SCHD, are among the largest and most well-known options available in the market.

Both SCHD and JEPI (JPMorgan Equity Premium Income ETF) have been in the spotlight recently. While JEPI focuses on providing income through an options strategy, SCHD is more focused on dividend growth. Investors interested in dividend-focused strategies should carefully evaluate both options.

The total assets under management for SCHD have shown consistent growth, indicating that investors are attracted to its dividend growth strategy. This is a positive sign for those considering SCHD as an investment option.

While the year-to-date return for SCHD in 2023 has been -2.3%, trailing behind some of its competitors, it's essential to consider the long-term potential of dividend growth. Investments in dividend-paying stocks often require a patient approach, as the primary goal is to generate income rather than chase short-term gains.

In conclusion, the Schwab U.S. Dividend Equity ETF (AMEX:SCHD) presents a strong investment option for those seeking dividend growth. Its popularity, consistent growth in total assets under management, and focus on dividend-paying stocks make it an attractive choice for investors looking for long-term income generation. However, it's crucial to evaluate SCHD alongside other options and consider the potential risk and rewards before making any investment decisions.

schdschwab u.s. dividend equity etfinvestmentdividend growthetfpopularitytotal assets under managementyear-to-date returnAMEX:SCHDAMEX:VOOAMEX:VYM
Share this article