Thank you for confirming my believe in SCHD. To me it is simple if you want to generate income through selling shares buy S&P500 ETF, but if you want to generate income through dividend buy SCHD. I have been buying SCHD for last 3 years and will keep buying until I retire.
This could also apply to Realty Income, O was trading below $50 and so many dividend investors considered the company to be finished. The buy high sell low mentality will never leave. Great video!
Nice Video. The problem with Bonds is that the value of the asset is constant. If you invested $100,000 in a Treasury Bond and another $100,000 in the S&P back in 1980 and you spent only the interest or the dividend as you received them at first you would be making more in income with the bonds . But after 30 years you for the bond you would only have your initial 100,000 dollars but The S&P would be worth 2.5 million and yielding About $38,000/year vs the bonds $5000/year.
Hey InfoRanker! Man I remember seeing your comments from back in 2019! Great to see you again! Yeah I wouldn't mind paying a very slightly higher expense ratio for it to be paid monthly.
Great stuff as usual man! I actually am currently dollar cost averaging into three different Index funds, The SPY is my main baby just because it mirrors the S&P 500 so at minimum it’ll match the market. Recently I have been buying SCHD dollar cost averaging to balance it a little because I do firmly believe we will have a massive course correction at some point in the near future. When the SPY’s returns will go down, the dividends yield will go up in SCHD is my thought. The other index I just started buying is the QQQ. Can’t hurt to have your eggs in multiple baskets.
Comparing SCHD to the S&P500 is nonsensical. They exist for different purposes. The same with people criticizing covered call ETFs for underperforming the underlying asset. Those are different investments for different purposes. They are comparing apples to oranges. Know your purpose and then choose the investments that match it.
I have been looking into SCHD for months now as I am approaching retirement. After our call a few weeks ago Jake, I picked up 12,9993 shares. Freaked out a bit because the share price is down and I "lost" $6k in the last month.... BUT I haven't gotten a dividend payout yet, and I am still have a "growth investor" mindset. I need to stop focusing on the price and just hold out for the dividend payout. It's a rocky entry into dividend investing for me but it's about changing my viewpoint.
Hey!!! Great chatting with you! Whenever I buy something it always goes down right after lol I think thats just how it works... The important metric to watch now is how your yield on cost goes up over time! Last quarter the dividend growth rate was around 15%! I don't know many people who get a 15% raise at their day job! Some years it may be 15% and some years it may be 3%. Keep a long-term mindset and enjoy the journey. With that many shares, you might be looking at a +$10,000 dividend check in December!
@@DividendGrowthInvesting Yeah, not sure if I made it before the ex-div date... (?) what's the Dec. cut-off date? You know.... one other thing I think people miss (and this is an idea for you for an upcoming video)..... when people rag on SCHD and dividend investing, I think they are focused way too much on growth vs. total returns like you said, but what no one seems to talk about is the other side of that coin. I did the math and ran this out for 30 years with many MANY models and the numbers were pretty astounding. The total $ on a 4% or 5% drawdown vs. holding dividends and collecting 7% 9% is unbelievable. So sure, SCHD might be a point or two behind the SP500 ramping UP to retirement, but it's lightyears ahead when someone is actually IN retirement.... and there is no sell off of stocks. The numbers really don't even come close after you stop investing into the market and you start living your life.
@@michaelgonda962 You didn't miss the ex-dividend date for SCHD for the December payout. The ex-dividend date will be sometime in early December. Such a good point! People get blinded by flashy bright things and overlook that part! That is why I think if the yield is too low relative to how much you can invest, then combine it with another ETF that has a higher yield. If you want more yield, my favorite is JEPQ! SCHD/DGRO/JEPQ when equally weighted will give you a 5% starting yield and you can work your way from there depending on your income goals.
Great video, Jake! SCHD is one of my main holdings (I basically invest in VTSAX, SCHD and SMH). I have been following your channel for sometime and I would enjoy a lot some insight about two unusual etfs, NANC and KRUZ. There is some hype going on around them.
I think SCHD’s best application is for older investors trying to lower volatility while still having a large equity position entering retirement. Solid argument for combining SCHD, DGRO, DGRW, CGDV, etc with a basket of high yield funds like QQQI, JEPQ, GPIQ, etc that are more tech-weighted. Maybe add a 2-5% allocation of Bitcoin on top via FBTC, MSTR or MSTY for income and you have a really solid portfolio with high income that’s probably going to closely track or even beat the market, and majorly outperform in any down years. Something that’s been demonstrated by many other finance TH-camrs over the years. Still, I think it would be fairly easy to pick your own DGI stocks according to some basic rules and outperform SCHD if you have the time and desire.
Schd is just under a third of my portfolio. I'm 46 and only been investing for a year. I need that snowball. I also have voo for foundation, vgt and qqqm for growth, main and o for stable monthly payments, and jepi and jepq for monthly payments that i use to buy my other positions. I have no intention of investing in anything else.
I really hate the "well it underperformed ___" argument. You can always point to something that made more in retrospect. Even compared to the s&p you can point to things that made more
Jake I’ve always loved your videos! Schd is a little too heavy in the top 10, so I feel less inclined to hold as a major position. Though past performance is a bit less with some of the other dividend indexes, I find them a bit safer. Are the holdings set to perform well during both times of growth and a more recessive economy? Thanks for all your videos!
Hey!!! Yeah that’s a big reason I like combining it with another ETF as your core and then round it out with other satellite positions. Thanks for watching!!
@DividendGrowthInvesting It is! AND ALWAYS BE! Just because SCHD doesn't gives a ton of dividend as much as an active managed ETFs, doesn't mean it's not great! 😆 Can we also gets more videos about comparison between passive x active-managed ETFs as well? I think people are forgetting how cheap SCHD vs other ETFs gets when its get much bigger.
I believe you might add some GPIQ or JEPQ in your portfolio for income boost.... That's my prediction. By the way, what's your thoughts on SPDG etf? It's a new dividend etf that seems interesting.
Investing becomes much easier when you really know why you are doing what you are doing and not worrying about what other people think. Small side tangent ti your ibond comments. Since ibonds are still paying a fixed rate > 1% above inflation i am continuing to park cash there as part of my emergency fund. Once the fixed rate drops below 1% i will probably stop putting money there.
They can be a great place to park your money if you need the cash in the near future. The important thing is to understand your goals. Everyone’s goals are different. The issue I have with people going all in on bonds and not diversifying is thinking they can time the market and get out of bonds before the market/ stocks go up.
2,000 shares and adding 30-40 a month with goal of 3,000 of purchased shares (not including the dripped shares). Retirement in a couple years and the dividends will cover all my current taxes and then some! 🤞
Wait a second…. Something is missing here…🤔 Wait, I know what it is! Where’s my friend at?! My partner!? He’s always tells me that he’s glad I came! That’s craaaaazy! 😂😂
In October our government on the behalf of the EU made it impossible for us to buy more of this ETF to “protect us” because the KID document is not in our local language. I can however buy any publicly trading stocks with no issues. So I can put all my money in a single stock, but can’t buy a diversified ETF, because that’s too risky according to the EU. 🙄
A bond or a high yield savings account give you no growth of your principal. And interest is fully taxable. SCHD pays a fully qualified dividend. Look up IRS treatment if you aren’t aware of the advantages.
Have you ever looked at ONEY? Similar historical performance to SCHD. Higher expense, smaller dividend but still good. Totally different stocks. I find it a nice balance to SCHD.
You don't give yourself enough credit, all your portfolio review episodes are schd videos 😜 Definitely smart to check out what the bears are talking about though
Interesting, was having a debate with an American friend about me doing SCHD before IVV, about returns. He wasnt happy when i pointed out the Australian S&P300 over the last 100 years has outperformed the S&P500, and thats before franking credits. The Mag 7 in the last 10 years has kinda twisted the market, and the gamble is, do you think they still have that much more growth to do? Apple and Microsoft have nowhere to go, Google is also up there. Telsa is fighting tough competition etc. Im willing to take the gamble that the S&P500 will have slower growth, not because of the US market, i think its strong, but that there isnt that much more huge growth left in the Mag 7. Also still think SCHD 3.5% and VHY 6% are a wicked dividend strategy. With some growth etfs thrown in.
You can go back to an older video where he talks about his entire portfolio and holdings, including options trades to juice the income. It was one of my favorites, along with the one about investing with leverage.
I have a feeling again it’s just a feeling you are adding more dividend aristocrats and dividend kings which if that is the case that so far is the best way I think to generate dividends safe and secure
Okay, let me guess: You’re increasing your share in covered call funds and adding new positions in addition to JEPI and JEPQ. QQA! Definitely not SVOL… 😂
@@DividendGrowthInvesting Right xD but what I mean to say is in a situation where the top companies are cutting dividends. I wonder if the ETF itself could remain active with zero holdings due to its selectable universe being turned to ash.
OMG HASBULA!!! I had no idea that interaction with Tyson happened. "I thought he was a baby! He like 26" I'm dead hahahahahahaha!🤣🤣 and SCHD vids are fine since I own a ton of it, I'm curious what to do with it in retirement :)
Thanks for watching!
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SCHD is my #1 position with 157 shares and counting😊 buying it weekly
Heck ya!!!! One share at a time! Thanks for watching jay!
Same here. Buying SCHD and SPYI once a week if I can.
Thank you for confirming my believe in SCHD. To me it is simple if you want to generate income through selling shares buy S&P500 ETF, but if you want to generate income through dividend buy SCHD. I have been buying SCHD for last 3 years and will keep buying until I retire.
Can’t wait to see the changes you’ve made to your portfolios!
SCHD my biggest holding by far. Set it and forget it. It’s on dividend reinvestment.
sweet and simple!
This could also apply to Realty Income, O was trading below $50 and so many dividend investors considered the company to be finished. The buy high sell low mentality will never leave. Great video!
Good point!
Finished? Lol!
Who were those people? 😂😂😂
Nice Video. The problem with Bonds is that the value of the asset is constant. If you invested $100,000 in a Treasury Bond and another $100,000 in the S&P back in 1980 and you spent only the interest or the dividend as you received them at first you would be making more in income with the bonds . But after 30 years you for the bond you would only have your initial 100,000 dollars but The S&P would be worth 2.5 million and yielding About $38,000/year vs the bonds $5000/year.
"If I knew I wouldn't be making YT videos, I'd be on a yacht in the Bahamas" 😂 I liked the video right there
That Mike Tyson clip had me dying laughing. 😂😂😂
lol
Thanks for the video!
MORE videos on SCHD!!! 💕💕
yessssssssssss
I only wish it paid monthly.
Hey InfoRanker! Man I remember seeing your comments from back in 2019! Great to see you again! Yeah I wouldn't mind paying a very slightly higher expense ratio for it to be paid monthly.
Me too.
I’ve learned to budget quarterly instead of monthly, it helps with self employed income in my situation and plan for a bit longer time horizon
That would be sweeeeeet!
It’s my money and I want it now! 😂
Solid !....going to think about diverting some of my VOO holdings to SCHD and DGRO
Great stuff as usual man! I actually am currently dollar cost averaging into three different Index funds, The SPY is my main baby just because it mirrors the S&P 500 so at minimum it’ll match the market. Recently I have been buying SCHD dollar cost averaging to balance it a little because I do firmly believe we will have a massive course correction at some point in the near future. When the SPY’s returns will go down, the dividends yield will go up in SCHD is my thought. The other index I just started buying is the QQQ. Can’t hurt to have your eggs in multiple baskets.
Thanks! Yeah those 3 ETFs are great to build wealth! Each have their own pros and cons.
qqq and spy have 50% overlap. personally i would replace qqq and spy with a single total market
@emsea1658 - for most people, they want to concentrate that 50% overlap. Switching to VTI dilutes the growth aspect of QQQ/QQQM.
Comparing SCHD to the S&P500 is nonsensical. They exist for different purposes. The same with people criticizing covered call ETFs for underperforming the underlying asset. Those are different investments for different purposes. They are comparing apples to oranges. Know your purpose and then choose the investments that match it.
A lot of people don’t understand this. Good call out
SCHD + SCHG = awesome performance
2100 shares. Love SCHD, have other positions too
nice!!!
I have been looking into SCHD for months now as I am approaching retirement. After our call a few weeks ago Jake, I picked up 12,9993 shares. Freaked out a bit because the share price is down and I "lost" $6k in the last month.... BUT
I haven't gotten a dividend payout yet, and I am still have a "growth investor" mindset. I need to stop focusing on the price and just hold out for the dividend payout. It's a rocky entry into dividend investing for me but it's about changing my viewpoint.
Hey!!! Great chatting with you! Whenever I buy something it always goes down right after lol I think thats just how it works... The important metric to watch now is how your yield on cost goes up over time! Last quarter the dividend growth rate was around 15%! I don't know many people who get a 15% raise at their day job! Some years it may be 15% and some years it may be 3%. Keep a long-term mindset and enjoy the journey.
With that many shares, you might be looking at a +$10,000 dividend check in December!
@@DividendGrowthInvesting Yeah, not sure if I made it before the ex-div date... (?) what's the Dec. cut-off date?
You know.... one other thing I think people miss (and this is an idea for you for an upcoming video)..... when people rag on SCHD and dividend investing, I think they are focused way too much on growth vs. total returns like you said, but what no one seems to talk about is the other side of that coin.
I did the math and ran this out for 30 years with many MANY models and the numbers were pretty astounding. The total $ on a 4% or 5% drawdown vs. holding dividends and collecting 7% 9% is unbelievable.
So sure, SCHD might be a point or two behind the SP500 ramping UP to retirement, but it's lightyears ahead when someone is actually IN retirement.... and there is no sell off of stocks.
The numbers really don't even come close after you stop investing into the market and you start living your life.
@@michaelgonda962 You didn't miss the ex-dividend date for SCHD for the December payout. The ex-dividend date will be sometime in early December.
Such a good point! People get blinded by flashy bright things and overlook that part! That is why I think if the yield is too low relative to how much you can invest, then combine it with another ETF that has a higher yield. If you want more yield, my favorite is JEPQ! SCHD/DGRO/JEPQ when equally weighted will give you a 5% starting yield and you can work your way from there depending on your income goals.
@@DividendGrowthInvesting SCHD ex-dividend date is on 12/11/24
@@michaelgonda962The next ex dividend date is 12/11/24...
Great video, Jake! SCHD is one of my main holdings (I basically invest in VTSAX, SCHD and SMH). I have been following your channel for sometime and I would enjoy a lot some insight about two unusual etfs, NANC and KRUZ. There is some hype going on around them.
Thanks!! I’ll check them out
I did watch some post election shuffling with holding order in SCHD. Blackrock was in position 1 then back down to 3.
I think SCHD’s best application is for older investors trying to lower volatility while still having a large equity position entering retirement.
Solid argument for combining SCHD, DGRO, DGRW, CGDV, etc with a basket of high yield funds like QQQI, JEPQ, GPIQ, etc that are more tech-weighted. Maybe add a 2-5% allocation of Bitcoin on top via FBTC, MSTR or MSTY for income and you have a really solid portfolio with high income that’s probably going to closely track or even beat the market, and majorly outperform in any down years. Something that’s been demonstrated by many other finance TH-camrs over the years.
Still, I think it would be fairly easy to pick your own DGI stocks according to some basic rules and outperform SCHD if you have the time and desire.
Schd is just under a third of my portfolio. I'm 46 and only been investing for a year. I need that snowball. I also have voo for foundation, vgt and qqqm for growth, main and o for stable monthly payments, and jepi and jepq for monthly payments that i use to buy my other positions. I have no intention of investing in anything else.
all really great choices!
Also, when I retire, my employee stock and 401k will be worth over a million to put in a rollover ira. I'll never have to sell a position.
I really hate the "well it underperformed ___" argument. You can always point to something that made more in retrospect. Even compared to the s&p you can point to things that made more
yeah... you can too easily cherry pick the time frame and make a very biased comparison.
Jake I’ve always loved your videos! Schd is a little too heavy in the top 10, so I feel less inclined to hold as a major position. Though past performance is a bit less with some of the other dividend indexes, I find them a bit safer.
Are the holdings set to perform well during both times of growth and a more recessive economy?
Thanks for all your videos!
Hey!!! Yeah that’s a big reason I like combining it with another ETF as your core and then round it out with other satellite positions. Thanks for watching!!
@ okay that makes way more since, I didn’t really understand the core/satellite concept until now. Thanks so much again Jake!
Another SCHD video?.. lol Happy Sunday Jake!🤙
lol Happy Sunday!!
@@DividendGrowthInvesting A dividend index that doesn't hold enough non-dividend stocks? OMG! 🤦♂😂
@@norttorres LOL....
Did everybody FORGET that it's an ETF that focus on dividend growth with the lowest expense ratio????? 😂
It really is a unicorn of a dividend etf!
@DividendGrowthInvesting It is! AND ALWAYS BE!
Just because SCHD doesn't gives a ton of dividend as much as an active managed ETFs, doesn't mean it's not great! 😆
Can we also gets more videos about comparison between passive x active-managed ETFs as well?
I think people are forgetting how cheap SCHD vs other ETFs gets when its get much bigger.
Sounds like those covered call etf are calling your name lol
maybe ;)
I'm guessing options over covered call ETFs.
Thanks for the video. I'm pretty sure, I know what you're doing next. If you know, you know.
:) ya I think you do
I believe you might add some GPIQ or JEPQ in your portfolio for income boost.... That's my prediction. By the way, what's your thoughts on SPDG etf? It's a new dividend etf that seems interesting.
Maybe :) I do like the low expense ratio on SPDG. The index looks pretty interesting. Definitely a candidate for a satellite position.
Thank you 🙏
Thanks for watching!
Investing becomes much easier when you really know why you are doing what you are doing and not worrying about what other people think.
Small side tangent ti your ibond comments. Since ibonds are still paying a fixed rate > 1% above inflation i am continuing to park cash there as part of my emergency fund. Once the fixed rate drops below 1% i will probably stop putting money there.
They can be a great place to park your money if you need the cash in the near future. The important thing is to understand your goals. Everyone’s goals are different. The issue I have with people going all in on bonds and not diversifying is thinking they can time the market and get out of bonds before the market/ stocks go up.
Covered call funds are calling...
;)
2,000 shares and adding 30-40 a month with goal of 3,000 of purchased shares (not including the dripped shares). Retirement in a couple years and the dividends will cover all my current taxes and then some! 🤞
Nice!!
Wait a second….
Something is missing here…🤔
Wait, I know what it is! Where’s my friend at?! My partner!? He’s always tells me that he’s glad I came! That’s craaaaazy! 😂😂
lol!!!! Omg Mike! I am so glad you noticed! I changed it up for the first time in like 3 years hahaha I'm glad you noticed!
In October our government on the behalf of the EU made it impossible for us to buy more of this ETF to “protect us” because the KID document is not in our local language. I can however buy any publicly trading stocks with no issues. So I can put all my money in a single stock, but can’t buy a diversified ETF, because that’s too risky according to the EU. 🙄
Covered call content coming from DGI??
Maybe ;)
What happened to the sucribe ending? I now feel empty...
lol changed it up for the first time in 3 years
Put it back haha@@DividendGrowthInvesting
@@DividendGrowthInvesting How dare you. Bring it back immediatly.
Currently at 2000 shares
nice!!!
Gotcha! I knew you a yacht in the Bahamas!
lol if only
The only thing I don’t like about SCHD is that the top 10 stocks are 40% of the total holdings
Ya that’s a fair argument
Check DUK stock for dividends along with SCHD.
DUK and SO are great satellite positions!
A bond or a high yield savings account give you no growth of your principal. And interest is fully taxable. SCHD pays a fully qualified dividend. Look up IRS treatment if you aren’t aware of the advantages.
exactly!!!!!!!!
Have you ever looked at ONEY? Similar historical performance to SCHD. Higher expense, smaller dividend but still good. Totally different stocks. I find it a nice balance to SCHD.
Interesting index! I think that could be a great satellite position. It focuses more on smaller/mid cap companies compared to the large cap of SCHD.
You don't give yourself enough credit, all your portfolio review episodes are schd videos 😜
Definitely smart to check out what the bears are talking about though
lol well I talk about SCHD/DGRO in most of my videos so if it quacks like a duck and looks like a duck it must be a..
Interesting, was having a debate with an American friend about me doing SCHD before IVV, about returns. He wasnt happy when i pointed out the Australian S&P300 over the last 100 years has outperformed the S&P500, and thats before franking credits. The Mag 7 in the last 10 years has kinda twisted the market, and the gamble is, do you think they still have that much more growth to do? Apple and Microsoft have nowhere to go, Google is also up there. Telsa is fighting tough competition etc.
Im willing to take the gamble that the S&P500 will have slower growth, not because of the US market, i think its strong, but that there isnt that much more huge growth left in the Mag 7.
Also still think SCHD 3.5% and VHY 6% are a wicked dividend strategy. With some growth etfs thrown in.
yeah there are a lot of different ways that can work. I'm actually thinking about visiting Australia in a few years!! Thanks for watching!!
You're going to write covered calls for extra income? If I got it right, will you make videos about it?
maybe ;)
who says you’re not secretly on your yacht and just bored 🧐
haha I would have a much better tan that's for sure...
More JEPI or JEPQ? Is that what you're going for?
maybe :)
I’m guessing you are venturing into options selling for the added income. Most likely covered calls/puts?
Maybe ;)
You can go back to an older video where he talks about his entire portfolio and holdings, including options trades to juice the income. It was one of my favorites, along with the one about investing with leverage.
@@mikesurel5040 ;)
Probably you're going to sell covered calls. I'm curious with what stocks.
I have a feeling again it’s just a feeling you are adding more dividend aristocrats and dividend kings which if that is the case that so far is the best way I think to generate dividends safe and secure
Maybe :)
Okay, let me guess: You’re increasing your share in covered call funds and adding new positions in addition to JEPI and JEPQ. QQA! Definitely not SVOL… 😂
@@Yield-Ahead lol very good guess! Maybe :)
Could do a quick review of DXYZ? I heard it holds Space X :)
I’ll check it out
All I wonder is, How DGRO and SCHD methodology would survive during a lost decade or something akin...
Like with the market, you would likely see lower than average (compared to recent averages) total returns.
@@DividendGrowthInvesting Right xD but what I mean to say is in a situation where the top companies are cutting dividends. I wonder if the ETF itself could remain active with zero holdings due to its selectable universe being turned to ash.
@@ImxxFuZe- those companies would turn to ash slower than the latest high fliers like tesla.
Just look at McDonald’s and the like. There’s your answer. 😂😂😂
Might be adding KURV as a satellite?
nope :)
I have just under 10000 shares... one of my biggest holdings as well. 😊
nice!!! I bet you are really happy in March, June, September, and December!
generate more income = options lol
Maybe ;)
I agree. It's either that or emerging markets. I could be wrong but that's the only way you can do it
So you're going to the dark side...FEPI, YMAX and SVOL.🤣
lolol ;)
Hi
hey!!!!!!!!
JEPQ
My largest holding :)
@@DividendGrowthInvestingand soon to be larger.
Selling puts
Maybe ;)
What you guys think about the YieldMax High Yield Funds
I personally prefer JEPQ/JEPI
Garbage funds that are yield traps… 😂😂😂
What they say
this and that
How to get a million subs:
Step:1 make a lot of SCHD videos
Step:2 ????
Step:3 profit
😂
OMG HASBULA!!! I had no idea that interaction with Tyson happened. "I thought he was a baby! He like 26" I'm dead hahahahahahaha!🤣🤣 and SCHD vids are fine since I own a ton of it, I'm curious what to do with it in retirement :)
lol omg! I couldn't stop laughing hahahaha