Schwab U.S. Dividend Equity ETF (AMEX:SCHD): A High Quality Dividend ETF
The Schwab U.S. Dividend Equity ETF (AMEX:SCHD) is a best-in-class ETF that focuses on high quality dividend companies. SCHD outperforms peers while charging less, too, with its 0.06% expense ratio. Investors who added the Schwab U.S. Dividend Equity ETF (AMEX:SCHD) at its September lows have benefited markedly from its mean-reversion.
The SCHD ETF's strategy focuses on companies that have at least 10 years of consecutive dividend payments. The fund selects investments based on certain metrics such as dividend yield, dividend growth, and dividend coverage. The fund's portfolio is composed of more than 200 stocks, the majority of which are large-cap, with a few mid-caps in the mix.
Outside of past performance, SCHD is a well-balanced ETF that has a well-rounded investment strategy, and solid dividend growth characteristics. It is well diversified across sectors, and its holdings are strong in terms of both dividend yield and dividend growth. The fund has a tilt towards value stocks, as expected, as well as a focus on quality and dividend sustainability.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SCHD ETF, with a decrease of 3.54 million shares. This is a noteworthy number that implies Investors are buying into SCHD. Thus, SCHD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider Strategic Trust - Schwab U.S. Dividend Equity ETF (AMEX:SCHD), as I have followed it since 2020, and it has been a reliable fund.
The SCHD ETF has a sector weighting of 31.6% in financials, 16.9% in consumer staples, 15.8% in industrials, and 10.6% in energy. Industrials and energy are overweighted, while tech is underweighted. Schwab U.S. Dividend Equity ETF (AMEX:SCHD) has a Morningstar rating of 4 stars, based on the quality of its underlying holdings.
SCHD is a low-cost option for Investors looking for a high-quality dividend ETF. It is well diversified across sectors, and its holdings are strong in terms of both dividend yield and dividend growth. The fund offers a reliable income stream with its focus on companies that have a history of dividend payments. SCHD's strategy also emphasizes dividend sustainability and dividend coverage, making it a great choice for those seeking to maximize their returns.
Recently, SCHD made headlines when the company said that a toilet was clogged and needed to be sanitized before the building was reopened. But, a spokesperson for SCHD told FOX13 that the company was committed to the safety of its customers and employees, and that the issue had been resolved.
SCHD is an excellent option for Investors looking for a high-quality dividend ETF. It outperforms peers, charges less, and has a well-rounded investment strategy. The fund's portfolio is composed of more than 200 stocks, the majority of which are large-cap, with a few mid-caps in the mix. SCHD's strategy emphasizes dividend sustainability and dividend coverage, making it a great choice for those seeking to maximize their returns.
