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I love ETFs. Ended up buying QQQM in my Roth, SCHD and some individual stocks in my brokerage account. I have a considerably larger position of SCHD, which are well managed.
so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How effective are your managed efts with this lot?
SCHD is About 35% of my Roth IRA SPDR S&P 1500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs.
Kenderdine tbh adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. It’s truly great to see steady growth.
I'm looking to start a position in JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow over time. Okay if I ask for referral from you.
@@MrGiggity890 That is correct, however if you buy fractional shares you cannot set limit prices (you can only buy market), at least not on two of my brokerages.
I want to start a new portfolio. While I usually focus on dividends, I decided to add a bit of growth to my investments. I have $80,000 to invest and I'm considering SCHG, AMZN, MSFT, and UNH. Should I spread my money across all of these, or put it all into SCHG?
I’ve moved a lot of my investments to growth stocks for the short to medium term. I think we're in a bull market and that growth stocks will do well. Since SCHG is a growth-focused ETF, I think it’s best to invest a great portion in it and then diversify the rest.
I’m working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 50% SCHD, 25% SCHG, and 25% VOO, thanks to my financial advisor. This strategy has helped me earn $36,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
Melissa Elise Robinson is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
SCHD is very popular in other countries and as far as I know, people in other countries cannot buy fractional shares like we can in the US (I can be wrong) Also, they may not have a lot of capital to buy a whole share frequently if they were DCA.
From Germany: It's not possible to buy schd here, it's US only. But many similar ETFs. We can fractions but usually only if you buy with a fixed payment rate, monthly, quarterly, etc.
I’m buying an SC HD tomorrow and I’m glad that it’s gonna split cause I’ll get more shares and I get in on the low share price. Awesome I plan on holding this for 10 to 12 years.
Why not just wait for the split and buy then? Either pay $85 now for 1 which will split to 3 making the new value $28. Or buy 3 shares are $27 once it splits. It’s relatively the same.
@@Stil1_loading huh? The etf represents the price of the underlying stocks. Overtime popular etfs like voo can absolutely drive the prices higher. What’s your point?
So after the split I'll have 6942 shares 🎉 SCHD has performed well for me this year second only to SPYI so I'm happy I am extremely grateful for this video I would've missed this information and reinvested my dividends at the wrong time so thanks a ton!
SCHD has requirements to be in the ETF. Broadcom was likely removed due to not meeting those requirements anymore. If you wanted to start a company and be included in SCHD you’d need 25 years of paying dividends and never reducing that payment.
Can you make a video on SCHD vs DGRO. Also maybe make an analysis of combining the 2 which can be beneficial as you can be invested in the tech sector with DGRO.
i dotn like DGRO much, it lean too much into tech sector. it dividend % and dividend growth is not as good as schd, and it appreciation is not as good as voo. it liek somewhere in teh middle iwth some dividend stock and growth stock which imo hurt its dividend since it not as good as schd and also hurt is growth since its not as good as voo in that sector.
Likely there are pension funds that have purchase limits, like $50 or $75/share. By splitting 3-1 the fund has room to grow and those pension funds can still buy them. It also gives the beginner investor a “budget” priced fund to buy without sticker shock.
It’s all about competing with SPHD which pays monthly and has a lower price. Likely with appeal to retail and pension funds. They are very similar and competitive. Actually a very smart move over time.
@@mikecumbo7531 yeah it’s all about share price and competition with SPHD. Most hold both. SPHD pays monthly and has a lower price. Smart move for SCHD
I have a question regarding reinvesting dividends I currently do this with QDTE while not a stable value like SCHD would I not be getting more growth from compounding since it's a weekly dividend instead of SCHD's quarterly payouts?
SPHD has monthly payouts and a lower price. Likely a move to be more competitive. I mean being an etf, I wouldn’t expect this to adjust price much. Maybe help having a smaller share price over time sure.
A recent Vanguard study found that, on average, a hypothetical $500K investment would grow to over $3.4 million under the care of an advisor over 15 years, whereas the expected value from self-management would be $1.69 million, or 50% less.
I agree; for over 17 months, I've maintained regular contact with an investment advisor. Nowadays, it's really simple to invest in trending stocks, but the challenge is knowing when to sell or hold. To support me with entry and departure points, my advisor steps in. Within 18 months, I've accrued almost a million dollars from an originally stagnating reserve of $450K.
“Jessica Lee Horst” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up {an appointment.
Do you trade out of positions if you believe they are fully valued? For example, I bought ABBV last year at 138 and now it’s at 191 and 66x earnings, last time it was that high it was in 2015 and it sold off around 28 percent. It feels ABBV is at the juncture and historically trades around 30x earnings. I have never heard you indicate either and seems your a holder of stocks long term. So am I, but dang ABBV seems at nose bleed levels. Buffet bought ABBV in 2020 at like 13x earnings and sold after a little run up . I actually used charting off seeking alpha after watching your DG video. I am not a fan of trading in and out of stocks.
@danwesson1934 Short answer is YES, but have u done your homework on your holding? Avg analyst PT is $197 for next 12mo.. so at 191, it needs to deliver in earnings or receive upgrades to warrant much further upside. But idk their pipeline, prospects etc.... you should tho. Never fall in love with a stock or buy and hold forever. When at these levels with big gains, you can trim 20% of the position. Nobody ever got hurt taking a profit. You can sell upside calls at $200+ to bring in income and partially offset losses from pullbacks. You could buy puts 5-10% OTM to protect your gains when it's overextend but u otherwise want to hold it longer term. People lo e to buy incrementally on the way down, but rarely have an exit plan. General advice would be to incrementally reduce your position as it goes up. Sell 20% now and additional shares every 5% up from here. Put the gains to work elsewhere or buy back in after a sizeable draw down of 15%+. Best of luck
Its just to make it more affordable to those who want to own it but don't want to throw 80 buck at it. 25-30 is more affordable to those of us who live paycheck to paycheck and instead of buying fast food we invest.
I believe it’s all about competition with SPHD which has a lower price and monthly payouts. To retail and other funds this makes SPHD more attractive. the additional compounding of Monthly dividends is big. Smart move by SCHD.
Fantastic news, i pair it with vanguards VHY. The split is no real benefit, all psychological really. But still makes it nice. Drops from $130 a share to $40.
So we now need 3 shares to receive the same total dividend payout ($0.75) that we would have received from 1 share before the split? What if the share price goes back up to $80? One share would receive only $0.25?
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
I suggest not selling. One month is a very small amount of time when investing. Investing is about the long game. 10, 20, 30 years etc. A tip when you feel this way is to hit your max time investing and look at the growth there. In regard to does the S&P500 and TSM overlap too much. The TSM contains the entire S&P500 so yes it’s generally considered not necessary to have both unless you want an even higher exposure to the top 500 companies. You’re going to do fine if you keep investing, and grow your knowledge. 🙂
I’m happy because a split usually means new investors and better stock price. But I’m usually happier when a stock buys back their shares meaning a greater share of profits. I guess we’ll see…
Stock Splits is typically a technique to make an "expensive" stock more accessible to retail investors. For example, the recent nVIdia's 10-for-1 split and Chipotle's 50-for-1 split. This was more relevant in the old days when an investor had to pay a trading fee and had to buy in whole lots (ie 100 shares blocks). However, nowadays, trades are free and many brokerages allow for trading fractional shares. That said, there is still the primal appeal of being able to see "numbers go up!" in your positions on a regular basis, so having a "cheaper" market price is great for those who are accumulating or DRIPing to be able to get whole shares rather than fractions of shares. I think all those already in SCHD will continue to hold because it doesn't affect them, but I don't think there will be a surge of new buyers because SCHD isn't as sexy as the ultra high yield ETFs. So a slight increase in additional shareholders, at best.
@@FJX716 I agree, this is typically what would happen. I do wonder though, given the reputation of it, if it does the opposite because it provides a better buy-in price for some, therefore we see an increase in buying. Either way, it's still a long term winner.
I’m very new to investing. I am going to start investing in stocks soon with plans to start putting extra money into it each month and start buying stocks that have steady dividend payouts to create a passive income. I would love any advice from others. I am 40 and I want a long term plan where I can be really set up within the next 5 years or so.
Man, getting a $850 dividend for three months seems low compared to what you can get with a covered call options ETF. I made $8,700 in premiums last month alone.
It's a tough one, if you add the price appreciation and dividend growth, believe it or not SCHD has beat out such funds in the long term. But if you need the cash flow now, I fully understand. I own both, have SCHD as my long term holding, and a bunch of the high dividend stickers for 'right now' cash flow.
Smart strat is to go for these high income funds now and get your monthly payments up to 5 figures or so. Then you start buying the boring slow and steady stuff like SCHD 10-20k at a time every month
@TheCampdragon I agree it is a tough one. Disclaimer I do love me some SCHD and have 15k in my Roth . I am a bit unorthodox when it comes to my strategy. I am already maxing 401k, Roth IRA, and HSA. I wanted to increase velocity of me getting to financial independence from a W2 job so I took a heloc loan for 80k and invested in options etfs. The debt costs me $1200 a month, but I net $5800-$13,000. I don't want to trade the healthiest years of my life waiting for these retirement accounts to have enough money. After the debt payments I reinvest half into options etf and the other half in SPY.
In reality, the split will have very little impact on the share price of $SCHD. $SCHD is an ETF made up of around 100 companies, so it's very unlikely we see the share price drift far from the Net Asset Value. Don't let the timing of the split effect when you decide (if) to invest into $SCHD.
They probably want to do something similar like Walmart, they want to keep share prices within a certain range to encourage more people to buy them. It’s a psychological thing.
Not just psychological if buying on Schwab. $30 can't buy a share, $60 can't either, and there's no fractional on ETFs on Schwab. Post split, now it can buy 1 or 2 shares.
This is to attract all investors into this fund. Great move in my opinion because stock splits usually are a plus and we’re in a recession. Eventually more money will flow into this fund.
Why do you say there's dividend growth? This last div is 75 cents, while the div 3 months ago was 82 cents... l rec`d LESS...this month. Their dividend is not constant, and not growing, it appears.
I'm curious because when nvida split the dividend went from 10 cents a share to 01 cent a share so I am curious does the dividend drop as well persay or is that only regarding individual company's and not etfs.
@@jeffaragon You're right on this boss, when a stock split occurs (3:1 in this case), the dividend also "splits" and "decreases", but you would still get the same dollar amount as you would have gotten if the split didn't occur. Hopefully I made it easy to understand lol
SPYD is a much better way to collect SPY dividends. Higher Yield and more Capital Appreciation. Why do you avoid talking about the most important thing which is the Dividend rate and not Dividend growth?
@@nunoduarte8984 for example if you sell a put option the buyer has the right to sell you 100 shares for the strike price. you can abuse this in the EU to get shares. if the buyer exercises his right to sell you shares you will suddenly receive them in your account. this doesn't count as you buying them. I can only speculate why EU bureaucrats left this loophole open but probably because they themselves want access to US ETFs. If you read up on basics of options you'll get it.
The only reason why Schwab does this is because they don't offer fractional shares. They want to attract all sorts of investors so they keep the price down by splitting shares.
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I love ETFs. Ended up buying QQQM in my Roth, SCHD and some individual stocks in my brokerage account. I have a considerably larger position of SCHD, which are well managed.
so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How effective are your managed efts with this lot?
SCHD is About 35% of my Roth IRA SPDR S&P 1500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs.
Kenderdine tbh adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. It’s truly great to see steady growth.
I'm looking to start a position in JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow over time. Okay if I ask for referral from you.
a lot of people into ETF let it ride for the long-term given its solid returns overtime.
a 3 for 1 split is kinda strange since it's only 84 dollars. oh well, it's fun to own loads of shares
Yeah that’s weird. I guess I could just buy $80 a week worth of SCHD going forward rather than 1 whole share
@@mikeyman1974 do you buy any cc funds?
I feel the same
It’s because Schwab doesnt allow fractional trades on their platform. They like to keep their ETFs cheap to encourage people to buy their ETFs.
@@o0usf0o doesn't
Love my 515 shares of SCHD, they will be bringing enough to buy me 4.5 more shares or 14 shares after split... Sweeeeet!
Puts me over 200 shares. 2 covered calls! Already 14%
Higher dividend than 2023. Where are all the complainers about the reconstitution now?
Wish Vanguard would split some of their shares.
wish SPY & QQQ do a split...
@@MiddleClassAmericanQQQ did in 1999.
@@AndyXie-yo7ti why? You can just buy fractional shares nowadays
@@MrGiggity890 E-Trade doesn't have fractional shares
@@MrGiggity890 That is correct, however if you buy fractional shares you cannot set limit prices (you can only buy market), at least not on two of my brokerages.
Other RUclips channels were knocking SCHD. Kudos to all who own it.
Performance wise it was justified
I do love the psychological effect of stock splits lol. I’ll have a ton of shares all of a sudden 🎉😂
@@o0usf0o 🤡
I want to start a new portfolio. While I usually focus on dividends, I decided to add a bit of growth to my investments. I have $80,000 to invest and I'm considering SCHG, AMZN, MSFT, and UNH. Should I spread my money across all of these, or put it all into SCHG?
I’ve moved a lot of my investments to growth stocks for the short to medium term. I think we're in a bull market and that growth stocks will do well. Since SCHG is a growth-focused ETF, I think it’s best to invest a great portion in it and then diversify the rest.
I’m working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 50% SCHD, 25% SCHG, and 25% VOO, thanks to my financial advisor. This strategy has helped me earn $36,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
Melissa Elise Robinson is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
My favorite ETF is splitting on my birthday. I take that as good luck.
It’s splitting on my 10 year wedding anniversary.
Good luck to both of you and happy investing!!
Happy birthday and anniversary :)
Viewers need to be reminded that after the 3 to 1 stock split 10/10/2024 the next dividend payment will likely be around .25 cents per share.
1 share worth 0.75 or 3 shares for 0.25. All counts the same
The split though puts me over 100 shares which means it’s time to sell covered calls baby!!!
@@mgauthi3I think the point is people will freak and think it’s a big dividend cut.
Probably closer to .30 cents
@@FJX716 I think the premiums on SCHD calls are very low sadly :( still gonna do it though.
This is great news imo, it allows you to expose less of your overall position to assignment while selling covers calls.
Love it lol will push my SCHD and SCHG to be over 100 shares now will just keep adding to both
SCHD is very popular in other countries and as far as I know, people in other countries cannot buy fractional shares like we can in the US (I can be wrong) Also, they may not have a lot of capital to buy a whole share frequently if they were DCA.
From Germany: It's not possible to buy schd here, it's US only. But many similar ETFs.
We can fractions but usually only if you buy with a fixed payment rate, monthly, quarterly, etc.
We can get it here in Australia, plus most brokers allow fraction shares as well.
Dam about to have 300!
Currently have 50 shares DCA every week💪🏽💪🏽💪🏽
I’m buying an SC HD tomorrow and I’m glad that it’s gonna split cause I’ll get more shares and I get in on the low share price. Awesome I plan on holding this for 10 to 12 years.
Why not just wait for the split and buy then? Either pay $85 now for 1 which will split to 3 making the new value $28. Or buy 3 shares are $27 once it splits. It’s relatively the same.
That's a little weird as it isn't that high priced.
Schwab doesn't allow fractional trading, so it makes sense to keep prices low to attract all levels of investors.
They are competing with SPHD, which pays monthly and has a lower price. Actually a very smart move with them being so similar
@@Stil1_loading don't know what?
@@Stil1_loading huh? The etf represents the price of the underlying stocks. Overtime popular etfs like voo can absolutely drive the prices higher. What’s your point?
So after the split I'll have 6942 shares 🎉 SCHD has performed well for me this year second only to SPYI so I'm happy I am extremely grateful for this video I would've missed this information and reinvested my dividends at the wrong time so thanks a ton!
So with that shares what do you get in dividends yearly from them alone?
@@braxtonvestal777 That would prolly be around $1600 per quarter or $6400 per year without DRIP.
@@braxtonvestal777do the math. It's easy to look up
I just got 150 shares last week....
Nice, you’ll have 450 now 😂
This is great for you then
I only got 4 shares but I’m climbing! I’ll get to 10 than 50, and so on and so forth.
Schwab keeps their ETFs cheap bc they don’t allow fractional trading on their platform.
Schwab is doing a 4 for 1 stock split with SCHG as well. It’s more expensive than schd which they’re probably trying to align.
Ah yes okay that makes sense. Otherwise I was like wtf
They do but only for specific stocks
@@josephlance9262they need that sweet sweet expense ratio lol.
@@FJX716 not ETFs… the idea is to encourage retail investors to buy their ETFs on their platform.
Wouldn't each individual stock's dividend also be reduced by the split ratio?
Splits dont effect the etf, juzt makes it easier to buy shares and trade options
Yesssss $SCHG & $SCHB as well. 🎉🎉
Holy poo, that means I'll have 3921 shares after the split. Also pumped for the $986 divy!
I don't own any now. Does it matter if I buy $1000 worth before or after the split?
Great analysis and will enjoy my new amount of shares!!!
SCHD does not pay high dividends! BDCs and REITs do. Furthermore it was no good idea of them to them to kick out Broadcom.
I like REITs and BDCs. Check out Van Eck BDC ETF which is ticker BIZD
Bdc’s and reits are taxed as ordinary income in a brokerage account. Good if I’m tax sheltered account.
SCHD has requirements to be in the ETF. Broadcom was likely removed due to not meeting those requirements anymore. If you wanted to start a company and be included in SCHD you’d need 25 years of paying dividends and never reducing that payment.
With a 3 to 1 split doesn't that mean you also have to divide the dividends by 3 to get dividend per share?
Yes. Noone is getting 3x dividends than now
Can you make a video on SCHD vs DGRO. Also maybe make an analysis of combining the 2 which can be beneficial as you can be invested in the tech sector with DGRO.
Also DGRW
Might as well toss in FDVV and DIVB. They also have a decent percentage of tech.
i dotn like DGRO much, it lean too much into tech sector. it dividend % and dividend growth is not as good as schd, and it appreciation is not as good as voo. it liek somewhere in teh middle iwth some dividend stock and growth stock which imo hurt its dividend since it not as good as schd and also hurt is growth since its not as good as voo in that sector.
If I buy SCHD tomorrow, will I be available to receive the split?
Yes
@@palimo3653ty
Good to know. I’ll be backing up the rock truck tomorrow.🤟🏼
Why? That makes no sense.
Likely there are pension funds that have purchase limits, like $50 or $75/share. By splitting 3-1 the fund has room to grow and those pension funds can still buy them. It also gives the beginner investor a “budget” priced fund to buy without sticker shock.
It’s all about competing with SPHD which pays monthly and has a lower price. Likely with appeal to retail and pension funds. They are very similar and competitive. Actually a very smart move over time.
@@mikecumbo7531 yeah it’s all about share price and competition with SPHD. Most hold both. SPHD pays monthly and has a lower price. Smart move for SCHD
I have a question regarding reinvesting dividends I currently do this with QDTE while not a stable value like SCHD would I not be getting more growth from compounding since it's a weekly dividend instead of SCHD's quarterly payouts?
SPHD has monthly payouts and a lower price. Likely a move to be more competitive. I mean being an etf, I wouldn’t expect this to adjust price much. Maybe help having a smaller share price over time sure.
If buying the ETF isn´t an option in my country, would it be worth to make a pie of the first 50 stocks of SCHD and invest in those stocks?
We don’t have SCHD in Europe. What you recommend instead? VUAA?
A recent Vanguard study found that, on average, a hypothetical $500K investment would grow to over $3.4 million under the care of an advisor over 15 years, whereas the expected value from self-management would be $1.69 million, or 50% less.
In other words, an advisor-managed portfolio would average 8% annualised growth over a 25-year period, compared to 5% from a self-managed portfolio
I agree; for over 17 months, I've maintained regular contact with an investment advisor. Nowadays, it's really simple to invest in trending stocks, but the challenge is knowing when to sell or hold. To support me with entry and departure points, my advisor steps in. Within 18 months, I've accrued almost a million dollars from an originally stagnating reserve of $450K.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
“Jessica Lee Horst” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up {an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
Do you trade out of positions if you believe they are fully valued? For example, I bought ABBV last year at 138 and now it’s at 191 and 66x earnings, last time it was that high it was in 2015 and it sold off around 28 percent. It feels ABBV is at the juncture and historically trades around 30x earnings. I have never heard you indicate either and seems your a holder of stocks long term. So am I, but dang ABBV seems at nose bleed levels. Buffet bought ABBV in 2020 at like 13x earnings and sold after a little run up . I actually used charting off seeking alpha after watching your DG video. I am not a fan of trading in and out of stocks.
@danwesson1934 Short answer is YES, but have u done your homework on your holding? Avg analyst PT is $197 for next 12mo.. so at 191, it needs to deliver in earnings or receive upgrades to warrant much further upside. But idk their pipeline, prospects etc.... you should tho.
Never fall in love with a stock or buy and hold forever. When at these levels with big gains, you can trim 20% of the position. Nobody ever got hurt taking a profit. You can sell upside calls at $200+ to bring in income and partially offset losses from pullbacks. You could buy puts 5-10% OTM to protect your gains when it's overextend but u otherwise want to hold it longer term.
People lo e to buy incrementally on the way down, but rarely have an exit plan. General advice would be to incrementally reduce your position as it goes up. Sell 20% now and additional shares every 5% up from here. Put the gains to work elsewhere or buy back in after a sizeable draw down of 15%+. Best of luck
gotta learn to hold for 20 plus years ...
Why a stock split ?
It's to screw all of those youtubers who are buying 1 share a day as a flex. 😁
Higher price than they want to be trading at I’d guess
Makes it more affordable
Its just to make it more affordable to those who want to own it but don't want to throw 80 buck at it. 25-30 is more affordable to those of us who live paycheck to paycheck and instead of buying fast food we invest.
@@HowHingPau No, it doesnt make a bit of difference.
Is the logic behind a split to increase options ?
I believe it’s all about competition with SPHD which has a lower price and monthly payouts. To retail and other funds this makes SPHD more attractive. the additional compounding of Monthly dividends is big. Smart move by SCHD.
Fantastic news, i pair it with vanguards VHY. The split is no real benefit, all psychological really. But still makes it nice. Drops from $130 a share to $40.
1300 shares for me and adding more today.
How to choose an ETF, on which metrics? thanks
Is the dividend going to split with the stock or are they keeping it at the usual range?
Dividend will split as well.
I only have 238 so far. I am glad it is splitting.
Is there a benefit to buying more SCHD now before the split ?
So we now need 3 shares to receive the same total dividend payout ($0.75) that we would have received from 1 share before the split? What if the share price goes back up to $80? One share would receive only $0.25?
The dividend grows...wake up.
So if I buy 10 shares now it’ll be 30 shares in October 11?
Technically yes you would have 30 but it would be ⅓ the value of your 10 shares
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
I suggest not selling. One month is a very small amount of time when investing. Investing is about the long game. 10, 20, 30 years etc. A tip when you feel this way is to hit your max time investing and look at the growth there.
In regard to does the S&P500 and TSM overlap too much. The TSM contains the entire S&P500 so yes it’s generally considered not necessary to have both unless you want an even higher exposure to the top 500 companies.
You’re going to do fine if you keep investing, and grow your knowledge. 🙂
this is good because i can't buy fractional shares.
Yeah the next question is how much are the dividends gonna pay per share next quarter?
$.25
I am excited!
got 86 shares of schd guess ill have around 250 shares now!
Getting ready to own 375
Won’t the dividend be less because it is divided by the amount of shares?
Would it take eleven years or so for SCHD to go back up to $83? Dividend yield will stay around 3.58 percent?
So what you’re saying is buy as normal. Got it… 🎉
Do you run covered calls on any of your shares?
I’m happy because a split usually means new investors and better stock price. But I’m usually happier when a stock buys back their shares meaning a greater share of profits. I guess we’ll see…
Better to buy now or wait until after split? How do we think buyer's perspectives will be affected?
Buy now bro
@@theegress3131 Why though?
Stock Splits is typically a technique to make an "expensive" stock more accessible to retail investors. For example, the recent nVIdia's 10-for-1 split and Chipotle's 50-for-1 split. This was more relevant in the old days when an investor had to pay a trading fee and had to buy in whole lots (ie 100 shares blocks). However, nowadays, trades are free and many brokerages allow for trading fractional shares. That said, there is still the primal appeal of being able to see "numbers go up!" in your positions on a regular basis, so having a "cheaper" market price is great for those who are accumulating or DRIPing to be able to get whole shares rather than fractions of shares.
I think all those already in SCHD will continue to hold because it doesn't affect them, but I don't think there will be a surge of new buyers because SCHD isn't as sexy as the ultra high yield ETFs. So a slight increase in additional shareholders, at best.
The stock will likely dip after the split according to history. Long term though you will want to load up whether it’s before or after.
@@FJX716 I agree, this is typically what would happen. I do wonder though, given the reputation of it, if it does the opposite because it provides a better buy-in price for some, therefore we see an increase in buying. Either way, it's still a long term winner.
Nice can run some option strategies on it.
do i buy the dividend SCHD shares in Interactive Brokers?
You can!
That's not how the dividend payout will work. The dividend will be divided by 3 as well
For Q4, yes.The dividend will impacted by the split. Not for the Q3 payment.
Does it matter if you buy now or after the split?
Not really. But the smaller figure will feel easier
I’m very new to investing. I am going to start investing in stocks soon with plans to start putting extra money into it each month and start buying stocks that have steady dividend payouts to create a passive income. I would love any advice from others. I am 40 and I want a long term plan where I can be really set up within the next 5 years or so.
Man, getting a $850 dividend for three months seems low compared to what you can get with a covered call options ETF. I made $8,700 in premiums last month alone.
It's a tough one, if you add the price appreciation and dividend growth, believe it or not SCHD has beat out such funds in the long term. But if you need the cash flow now, I fully understand. I own both, have SCHD as my long term holding, and a bunch of the high dividend stickers for 'right now' cash flow.
Smart strat is to go for these high income funds now and get your monthly payments up to 5 figures or so. Then you start buying the boring slow and steady stuff like SCHD 10-20k at a time every month
Tax implications could help the decision. This is a qualified where a lot of the high yielders are non qualified. Good luck!
@TheCampdragon I agree it is a tough one. Disclaimer I do love me some SCHD and have 15k in my Roth . I am a bit unorthodox when it comes to my strategy. I am already maxing 401k, Roth IRA, and HSA. I wanted to increase velocity of me getting to financial independence from a W2 job so I took a heloc loan for 80k and invested in options etfs. The debt costs me $1200 a month, but I net $5800-$13,000. I don't want to trade the healthiest years of my life waiting for these retirement accounts to have enough money. After the debt payments I reinvest half into options etf and the other half in SPY.
@@elliesdad9342 exactly! Get you from point A to B faster
The split is being used to drive volatility down.
Increased share count will allow for more shorting and options. The share count was already plenty high enough to avoid low float volatility
@@chris-zc7rp why would they want that on there etfs? Lol
I'm new to ETFs and was wondering if I should be buying stock before the split or after?
In reality, the split will have very little impact on the share price of $SCHD.
$SCHD is an ETF made up of around 100 companies, so it's very unlikely we see the share price drift far from the Net Asset Value.
Don't let the timing of the split effect when you decide (if) to invest into $SCHD.
@@Dividendology Thanks for the advise!
They probably want to do something similar like Walmart, they want to keep share prices within a certain range to encourage more people to buy them. It’s a psychological thing.
Not just psychological if buying on Schwab.
$30 can't buy a share, $60 can't either, and there's no fractional on ETFs on Schwab. Post split, now it can buy 1 or 2 shares.
The only thing that changes is it makes it easier for someone to buy Are you sure but the value is still the same
This is to attract all investors into this fund. Great move in my opinion because stock splits usually are a plus and we’re in a recession. Eventually more money will flow into this fund.
A recession?????😂😂😂😂😂
Can you get fractional shares on etrade
No you cant. you can only buy whole shares. I use robinhood for fractional shares.
Good for option trading as each option contact has a minimum of 100 shares.
Curious as to how many brokers still only deal in full shares? Any major ones?
Vanguard
@@IaMDubya apparently also Schwab
Does Schwab ever buy back shares of their ETFs?
I think all of Schwab's ETFs are splitting. SCHO, their Gov securities ETF is doing a 2-1 split the same day.
Added a few more shares - why not?!
thanks
sad that i can't buy them from Belgium 😒
I read that Schwab’s stock splits will affect 10 of their funds. Although not a dividend fund, any thoughts on SCHG?
SCHG will split 4/1
@@mikeo7769 yes, I read that. Sounds great!
It's actually about 20 of them
It be nice if it was available in the eu :(
I assume the dividend per share will also be divided by 3? If not you'd be getting 3x more in dividends
Correct
If I had a dollar for every time a stock split didn't result in actual gains... well, I'd probably just reinvest in SCHD! 😂
Wait what? You have 93,957 Shares?? That doesn't add up. That would be 7M in SCHD and your account is $200k not 8M
I didnt hear you say if the dividend will be the same or also reduced by a third?
everything will be split 3 way
Why do you say there's dividend growth? This last div is 75 cents, while the div 3 months ago was 82 cents... l rec`d LESS...this month.
Their dividend is not constant, and not growing, it appears.
Look at all the previous dividends. It's growing hugely. Or just sell and get out..up to you lol
i would buy Schwab ETFs if they had good option market... I will just stick with SPY & QQQ so I can sell covered-calls week in week out...
options will fuck you hard eventually. but you won't stop until it happens 😆
@TanManFixes u will never get f'ed selling covered calls... first go watch a video what covered calls are...
@TanManFixes lol, guy obviously has no idea what covered call is..
What does it do tonthe dividend per share
Doesn't a stock split mean the dividend is technically smaller?
I'm curious because when nvida split the dividend went from 10 cents a share to 01 cent a share so I am curious does the dividend drop as well persay or is that only regarding individual company's and not etfs.
@@jeffaragon You're right on this boss, when a stock split occurs (3:1 in this case), the dividend also "splits" and "decreases", but you would still get the same dollar amount as you would have gotten if the split didn't occur.
Hopefully I made it easy to understand lol
SPYD is a much better way to collect SPY dividends. Higher Yield and more Capital Appreciation. Why do you avoid talking about the most important thing which is the Dividend rate and not Dividend growth?
YAY!!
Stock splits are non-events as far as the value of your investment goes.
Its my 2nd highest Position. Need that VTI Stock split lol
any advice for european investors who can’t buy schd?
You can at Freedom24
European here. You can get SCHD by using options. Getting the shares assigned doesn't count as buying it 😂. That's how I do it
@@GinJ1337 what do you mean assigned? Honest question
@@GinJ1337I buy them at Freedom24
@@nunoduarte8984 for example if you sell a put option the buyer has the right to sell you 100 shares for the strike price. you can abuse this in the EU to get shares. if the buyer exercises his right to sell you shares you will suddenly receive them in your account. this doesn't count as you buying them. I can only speculate why EU bureaucrats left this loophole open but probably because they themselves want access to US ETFs. If you read up on basics of options you'll get it.
You can kill it with covered calls
Now imagine if you had nvdy cony msty amzy fby you’d be getting 5k a year
Stock splits don't matter at all. Especially for funds, where people are mostly buying for the long term vs. short term speculation.
The only reason why Schwab does this is because they don't offer fractional shares. They want to attract all sorts of investors so they keep the price down by splitting shares.
yes but usually splits bring in more buyers, and rising stock price. so it's a good thing.
@TanManFixes yea, makes it easier for all sorts of investors.
no UCITS etf for this :')
If this doesnt change the fundamentals why is SCHD down 2% today, 09/25
Emotions. An investors greatest tool.
Ex div date
@Xairos84 thank you I missed that, explains some of it
Dividend payment on 9/30