Everyone’s still obsessed with SCHD… Why?

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  • Опубликовано: 13 дек 2024

Комментарии • 129

  • @derekross6649
    @derekross6649 3 месяца назад +56

    Remember, the goal is to NOT have to sell you shares in order to fund your lifestyle. SCHD's gives you a true buy and hold forever option, thus ONLY living off of dividends.

    • @khafreahmose8768
      @khafreahmose8768 3 месяца назад +1

      Yep. Plus you can leverage your dividend holdings with a sbloc to diversify your investment portfolio.

    • @mikeyis009
      @mikeyis009 3 месяца назад +3

      Bingo.
      Can be up to $123k qualified dividends 100% tax free when married filing jointly and not selling any shares is pretty epic.

    • @derekross6649
      @derekross6649 3 месяца назад +1

      @@mikeyis009 Insane! What $ amount did you notice the dividend snowball effect? Thanks!

    • @CrazyWormLady
      @CrazyWormLady 3 месяца назад +5

      Some people are just too dense to get this.

    • @darkman35
      @darkman35 3 месяца назад +4

      ​@mikeyis009 Don't worry Kamala Harris will change that with new taxes

  • @bold2013
    @bold2013 2 месяца назад +101

    I value, value etfs

    • @daviswatkinsyt
      @daviswatkinsyt  2 месяца назад

      @@bold2013 nice!

    • @Iamjacob-x3o
      @Iamjacob-x3o Месяц назад +8

      I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more shares, creating a snowball effect that allows your investments to compound over time. It's one of the most passive and effective ways to build an income stream. well managed steady growth for me.

    • @Msmelissa-u1w
      @Msmelissa-u1w Месяц назад +2

      Jacob have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.

    • @Iamjacob-x3o
      @Iamjacob-x3o Месяц назад +5

      To be honest I keep compounding, 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 in the past year while participating behind a top performer. effectively remits over hundred k annually and increasing.

    • @AsandeMonwabisizondi
      @AsandeMonwabisizondi Месяц назад +3

      Msmelissa a lot of people let their dividends ride for the long-term given its solid returns effects overtime

  • @rickredfern5459
    @rickredfern5459 3 месяца назад +19

    I'm a few years away from retirement. SCHD really broadens my portfolio. When the market dips SCHD's value really kicks in. I'm not really all in on the dividends as much as I am on its diversification. SCHD can be a substitution for bonds in some cases.

  • @NoahNollens
    @NoahNollens 23 дня назад +258

    Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

    • @BrigetGstar
      @BrigetGstar 23 дня назад

      It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.

    • @AvelineOztas
      @AvelineOztas 23 дня назад

      We have been in a depression since 2008, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party.

    • @MesutMilleliri
      @MesutMilleliri 23 дня назад

      I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

    • @BrigetGstar
      @BrigetGstar 23 дня назад

      *Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

    • @MesutMilleliri
      @MesutMilleliri 23 дня назад

      _Julianne_ sure knows her onions in this industry, from her intimidating profile which I went through, on her web home page. I started off last year tailoring a colleague's tradin strategies but it didn't pan out well. Hopeful that she will attend to my message.

  • @fuz4623
    @fuz4623 3 месяца назад +22

    I’m about 1 year from retirement. When the market dropped last week, SCHD held pretty well. I like having that backstop. I also like having the dividend regardless of whether the market is up or down.

  • @SCHDSTAN
    @SCHDSTAN 2 месяца назад +3

    Thanks for the shout out Davis! Great video! SCHD is great and of course it shouldn’t be anyone’s only investment. When comparing the past performance of stocks and ETFs, it’s important to remember that while historical data can offer insights, no one knows what will happen in the future. SCHD is great for stability, capital growth that has the potential to keep up with the S&P while paying a growing dividend that is more consistent and dependable than the fluctuations of the market.

    • @daviswatkinsyt
      @daviswatkinsyt  2 месяца назад +1

      @@SCHDSTAN Well said! I’ll have to have you on my podcast sometime.

    • @SCHDSTAN
      @SCHDSTAN 2 месяца назад

      @@daviswatkinsyt let’s do it!

    • @SCHDSTAN
      @SCHDSTAN 2 месяца назад

      @@daviswatkinsytanytime

  • @sarawilliam696
    @sarawilliam696 Месяц назад +5

    I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.

    • @carssimplified2195
      @carssimplified2195 Месяц назад +2

      Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k

    • @Justinmeyer1000
      @Justinmeyer1000 Месяц назад +1

      You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl Месяц назад +1

      I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

    • @Justinmeyer1000
      @Justinmeyer1000 Месяц назад +1

      I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl Месяц назад

      Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info

  • @AlbrechtChristoph016
    @AlbrechtChristoph016 2 месяца назад +136

    As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

    • @LieselKaroline
      @LieselKaroline 2 месяца назад

      I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown

    • @ConradFriedrichj1z
      @ConradFriedrichj1z 2 месяца назад

      A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

    • @ConradFriedrichj1z
      @ConradFriedrichj1z 2 месяца назад

      Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.

    • @BerchtwaldElias1EH
      @BerchtwaldElias1EH 2 месяца назад

      I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

    • @ConradFriedrichj1z
      @ConradFriedrichj1z 2 месяца назад

      NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

  • @johnbob5137
    @johnbob5137 Месяц назад +1

    Thanks!

  • @DougSnyder-uh7rg
    @DougSnyder-uh7rg 2 месяца назад +5

    Finally, a video that steps back and looks at SCHD and other dividend stocks/funds. Dividends are just forced stock sales - nothing more, nothing less. You can always create your own meta-dividend stock/fund by selling a small portion of your underlying stock/fund when you need the income - a meta-dividend. This is even better than a standard dividend stock/fund. If you don't need the income, don't sell and then don't pay taxes on the meta-dividend. If you need more income than a dividend stock/fund yields, sell the amount of stock that you need - your meta-dividend can be at any rate you want (as long as it is less than the long-term growth of the underlying stock/fund). You aren't tied to the forced stock sale that the dividend forces you to take. Qualified dividends and long-term capital gains are taxed at the same rate.

    • @daviswatkinsyt
      @daviswatkinsyt  2 месяца назад

      Well said

    • @123lowp
      @123lowp 25 дней назад

      WRONG.
      Qualified dividends are not a forced stock sale.

  • @JamesCaballero-q2r
    @JamesCaballero-q2r 3 месяца назад +4

    I'm in retirement now. I own SCHD instead of bonds. I like the dividend/growth aspect. I own 50% SCHD, 40% S&P500, and 10% SCHG. I really liked the last dividend SCHD paid, and I really liked how SCHD held up in the recent downdraft in the market. SCHD is up 13.1% YTD vs VOO at 19.4% YTD, but being in retirement, I really like the defensiveness provided by SCHD.

  • @TheLeFam3
    @TheLeFam3 3 месяца назад +12

    I am investing in both VOO and SCHD long term horizon. You will win no matter which one you choose; well, I chose both. 😊

    • @TheTyberZann
      @TheTyberZann Месяц назад

      VT and SCHD for me. I enjoy the international and smallcap exposure.

  • @maria_maria33
    @maria_maria33 3 месяца назад +6

    I use SCHD in place of BND, and it's a small part of my portfolio. I love it, but to say it's the only etf you need is nonsense if you're young.

  • @Abdul_Rahman86
    @Abdul_Rahman86 3 месяца назад +5

    Here’s my approach!
    Growth because I’m young.
    As I approach retirement I’m going to slowly sell off and invest in dividend growth.

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад

      Great plan imo!

    • @Callofdutylover01
      @Callofdutylover01 3 месяца назад

      ​@daviswatkinsyt pretty sure that it would be better to let the dividends compound over a long period of time then rely on growth stocks/ETFs.

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад

      @@Callofdutylover01 growth stocks and growth ETFs also pay dividends

    • @Callofdutylover01
      @Callofdutylover01 3 месяца назад

      @@daviswatkinsyt QQQ and QQQM at .065 is not comparable to the 3.44 that SCHD is offering

    • @ahkeem0
      @ahkeem0 2 месяца назад

      dividend growth is also for long term investors too the early you start the better

  • @matthewszasz1895
    @matthewszasz1895 3 месяца назад +5

    Some folks don't seem to speak to how one fund can be just a part of the portfolio. So in the case of SCHD, only if it's one's only investment does Value underperforming Growth strategies in a bull market make sense. I'm not saying this is the argument in the video, only that the other people who post about SCHD is currently underperforming the market, yes, that's true but it's a matter of not understanding the roles of different investments within a portfolio. If one was an advocate for bonds, why? Similar thoughts on having SCHD play a role in the portfolio. Nobody talks about their portfolio being 100% bonds, but often enough context is left out in RUclips videos.

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад +3

      Yes, exactly. I’m referring to all the people who think it’s the “one and only ETF you need.” These are all great points!

  • @brucehazen8982
    @brucehazen8982 Месяц назад +1

    The point of funds like SCHD that some people miss is not beating the S&P 500, but lowering risk in a portfolio. SCHD -should- do better in a market downturn.

  • @international_dividend
    @international_dividend 3 месяца назад +2

    Need to think longterm with schd, compound dividend growth. The numbers get astonishing. But agree with you that the best formula is to mix with growth. I'm older than you, but pair VUG with SCHD and DGRO as the core of my portfolio.

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад +1

      @@international_dividend That’s very true! Nice work

  • @micaht4718
    @micaht4718 3 месяца назад +3

    It underperforms the S&P becomes it’s not a growth focused ETF. You buy it for dividends and dividend growth. When the market shifts back to value, SCHD will benefit massively

    • @xyz-pg3zd
      @xyz-pg3zd 3 месяца назад

      So buy now?

    • @micaht4718
      @micaht4718 3 месяца назад

      @@xyz-pg3zd I dollar cost average so I’m always buying it

  • @jimknarr
    @jimknarr 7 дней назад

    Many many months ago, I replaced my 60/40 fund with SCHD for half of my portfolio... best decision ever. The rest of my portfolio is in Mag7, QQQ, Midcap Growth, and sectors like cloud computing and software. Everything is going for the markets right now (seasonality, low volatility, rising US dollar, sentiment, lower rates, etc.). Gut feel from looking at the charts is that MAG7 and QQQ is going on one last ridiculous parabolic run, but could be wrong. At some point down the road (weeks/months), the theme is going to change, maybe a swing to international, energy, bear market, etc. I'm ready when it happens but for now doing nothing ... just letting the 401K ATM print money.

  • @don951
    @don951 3 месяца назад +9

    As a long time investor I was surprised to see so many young people going crazy for SCHD. Somehow it has become the darling with the RUclips crowd at a time it was able to hang with the SP500. Most of these people have limited experience in the market. So, that is all they know. But, in a normal rising market SCHD is typically going to underperform. In a down market it will fall less than the SP500. So, not a bad value safety play after a huge runup. But for someone that is young and has many years to invest, you should certainly be more aggressive. The stock market always goes up over the long-term. Cheers!

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад +3

      @@don951 Totally agree. It’s a great ETF depending on your investment style.

    • @NickDisantillo
      @NickDisantillo 3 месяца назад

      Schg
      Voo or VTI
      Schd is what needs to be bought and in that order and Schg being bought around 70% of the time followed by voo then Schd

  • @burtoncarlisle4810
    @burtoncarlisle4810 3 месяца назад +1

    My core funds are SPLG and VTI, also invest about 10% each in SCHD, AVUV and BND. Feel like I’m diversified with these funds and I’m very happy with my total returns from this mix:-)

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад +2

      @@burtoncarlisle4810 Great to hear! Sounds like a solid portfolio to me 👍

  • @RS-lw9cd
    @RS-lw9cd 3 месяца назад +2

    Investors that are young (and thus their time horizon is long term) should invest in growth and concentrate on total return. I see too many youtubers and people that are young emphasizing dividend (and dividend growth) stocks. Their justification is to build a portfolio of income/dividend producing stocks or ETFs. However, if they are simply reinvesting that income/dividends, it would be better to get a better overall total return, and then later in life transform their portfolio to stocks that produce income/dividends. So, much emphasis on high yield dividend stocks/ETFs at a young age just to invest those type of stocks/ETFs willl mean less overall wealth in the future. They can turn that higher wealth into income/dividends later in their financial life.

  • @jdgolf499
    @jdgolf499 Месяц назад +1

    It still amazes me that people still compare SCHD to s&p funds! They complement each other, not compete.

  • @sultanahmed3854
    @sultanahmed3854 Месяц назад +1

    I got 35% plus return by investing in VOO during the past year. I can now sell VOO, buy 50% more SCHD than I would have if I started with SCHD a year ago. What do people say to that?
    The dividend snowball affect requires 15+ years of investment in SCHD. A lot of people do not have that kind of timeline. A lot of those who do have that kind of timeline are likely NOT watching investment videos on RUclips.

    • @daviswatkinsyt
      @daviswatkinsyt  Месяц назад

      @@sultanahmed3854 interesting point

    • @markjou9799
      @markjou9799 Месяц назад

      I have both SCHD and VTI which I bought both 10 years ago. My return with VTI is alot more compared to SCHD.

  • @bufordthecamel6369
    @bufordthecamel6369 3 месяца назад +1

    Are these returns including dividend distributions as well as reinvested? Your point may still stand, but the math will look different than just looking at share price appreciation.

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад +1

      @@bufordthecamel6369 Yes, it’s including dividends reinvested.

  • @asterisk911
    @asterisk911 4 дня назад

    SCHD is underperforming the S&P recently. But a decision to buy today won't give you the growth of the past decade: it's about the future. So unless you have a good reason to believe that the very small number of non-dividend high fliers that have driven most of the S&P growth will continue to outperform instead of reverting to the mean, citing that recent history is meaningless. We can also find historical periods in which dividend growth stocks have outperformed non-dividend payers (Jeremy Siegel wrote a whole book about it).

  • @KL-ii6dt
    @KL-ii6dt 3 месяца назад +1

    VOOG has an expense ratio of .1
    I really wish people would acknowledge the facts before comparing funds

  • @mariex800
    @mariex800 3 месяца назад +2

    Kool contents, Dav. I hold SCHD in the portfolio. Luv this quality ETF, never disappoint. I also diversify into others. Our world will always changing so do our economy. Therefore, certain funds will rotate in & out, some appreciate today but others may depreciate tomorrow. It is a rotation process. So it is advisable to stay diversify. Never put all your eggs in one basket! To-D-Moon-

  • @Ronney-Aragundi
    @Ronney-Aragundi 2 месяца назад +2

    This video doesn't mention the Tech bubble the magnificent 7 created. The SP is not property valued right now because of the crazy speculation regarding emerging technologies. When the tide is gone we will see who is swimming naked.

  • @123lowp
    @123lowp 25 дней назад

    The problem with VOO is that you have to sell. In a retirement account, this is fine because you don't have to pay taxes. In a brokerage account, you will be f'd with capital gains tax in many situations. After taxes, you'll see you were probably better off buying SCHD and reinvesting dividends.

  • @JulianBenjamin3d
    @JulianBenjamin3d Месяц назад

    I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

    • @ElizabethElijah2g
      @ElizabethElijah2g Месяц назад

      Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.

    • @RubyOliverm5l
      @RubyOliverm5l Месяц назад

      The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.

    • @SofiaJames9H
      @SofiaJames9H Месяц назад

      Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?

    • @RubyOliverm5l
      @RubyOliverm5l Месяц назад

      My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

    • @SofiaJames9H
      @SofiaJames9H Месяц назад

      I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

  • @anhnguyen4443
    @anhnguyen4443 2 месяца назад

    Hi dear! Thank you for your video! Could I all in with SCHD AS BEGINNERS? I plan 70k for it and 700 for monthly contribution!

  • @Jkburd
    @Jkburd 2 месяца назад

    everyone always benchmarks their return back to the S&P performance but that seems unfair since most will do a 70/30 or 80/20 or something to mitigate risk.

    • @danmilligan5132
      @danmilligan5132 2 месяца назад

      @@Jkburd when compared to other dividend ETFs unfortunately because of the expense ratio this also under performs
      overtime that is

  • @ChrisCash720
    @ChrisCash720 3 месяца назад

    Dividends shouldn't even be a thought unless you have over 1million to allocate. Growth every time. Total return over dividends if your not where you want to be

  • @jimerin3533
    @jimerin3533 3 месяца назад +2

    There was only one "fund" in port with a worse performance over a year then SCHD; it was a bond fund. Thank goodness both of those holdings are like 3% of my port each.

  • @masoncnc
    @masoncnc 2 месяца назад

    Fair

  • @mikekeenanphd
    @mikekeenanphd 3 месяца назад +4

    Young people should not be investing in a fund that will underperform the market like SCHD. All for the privilege of getting dividends you have to pay taxes on. I do own a number of shares but I'm ancient (63).

    • @daviswatkinsyt
      @daviswatkinsyt  3 месяца назад

      @@mikekeenanphd I agree!

    • @toyarj37
      @toyarj37 2 месяца назад

      Roth no taxes. Do a mega back door Roth

  • @Positivecuriosity46
    @Positivecuriosity46 3 месяца назад +1

    Not a growth fund people!!!!

    • @danmilligan5132
      @danmilligan5132 3 месяца назад +1

      Absolutely this is a less volatile fund that gives you stability and income
      How to outperform the S&P? Nobody knows good luck 😮
      if you want to match the S&P just buy it.

    • @xyz-pg3zd
      @xyz-pg3zd 3 месяца назад

      @@danmilligan5132buy what

  • @CurieBohr
    @CurieBohr 2 месяца назад +1

    VOO > SCHD

  • @AG-so4gl
    @AG-so4gl 2 месяца назад +1

    SCHD div is crap, go JEPQ

    • @daviswatkinsyt
      @daviswatkinsyt  2 месяца назад

      @@AG-so4gl JEPQ is a good one

    • @123lowp
      @123lowp 25 дней назад +1

      JEPQ is crap. You have to be inexperienced to think a covered call strategy is better than holding the underlying index.