Dave says, "If you like this content please click the thumbs up, then click the subscribe button and hit the notification bell." Well Dave, I like all your content. Your a wise man!!
Thank you for doing this video, it was a big help to me. I subscribed and clicked the Bell, so please keep these good Videos coming. Do some more on these etf and some on common stocks. Thank you very much!!!!
👆👆Invest in a secure platform and broker where you will not lose your funds. I'm new to trading, but i met Mr. Steven Kurt here on RUclips where he teaches people to trade forex and stocks. which he guides me with a super platform and amazing strategy. I thought it was a scam, but finally I cashed my first $ 57,000 profit last week, he is very reliable and honest,he always tells me the actual time for buying and selling with 100 profit from his one-on-one master training...Stay bless 👆👆
I like your very clear explanation. I only need to watch your videos once to get it, whereas other investment videos fling field jargon around so quickly its like watching a video in another language. I'm subscribing! Thanks!!!
Good video! As of this weekend, 9/7/22, NAV for SCHD has dropped to $67.59, for a yield of 3.35%. One thing you did leave out, is the difference between an ETF and a mutual fund. ETFs typically have a lower management expenses.
I like ETF’s because they are easy to get out of, where as a Mutual Fund can take a couple of days. When a market is showing a massive week long drop you can bailout. Or if the market rotates to a different market theme you can rotate quickly as well.
Thank you for making this. It hit home for me as my stepmother is in the situation you discussed with managing a stock portfolio after my dad’s unexpected passing.
I have been following DVK for many years and highly respect him and his advice. I do not own SCHD yet but rather enjoy holding several dividend growth stocks. This is certainly a consideration once I am no longer interested in managing my own portfolio. I look forward to future videos from DVK.
Thank you so much for your video. Very well explained and I learned a lot. Subscribed and looking forward to see more videos from you. 👍😀👍 Just bought some SCHD last week after researching and will continue to buy 😄
Is there something similar for foreign stocks? SCHD is 100% US-based companies, although many of them are internationals. It'd be nice to diversify into other countries and currencies; they have lower valuation and higher yield too.
👆👆Invest in a secure platform and broker where you will not lose your funds. I'm new to trading, but i met Mr. Steven Kurt here on RUclips where he teaches people to trade forex and stocks. which he guides me with a super platform and amazing strategy. I thought it was a scam, but finally I cashed my first $ 57,000 profit last week, he is very reliable and honest,he always tells me the actual time for buying and selling with 100 profit from his one-on-one master training...Stay bless 👆👆
Great presentation Dave. I have been reading your work for years on SA. You are a big part of why I switched to DGI. Your a wonderful writer, and are great at videos too. My biggest holding is SCHD. The hardest part of holding it is that anxious three month wait for my next dividend. 😁
Great analysis in the video Dave. I have a feeling that it’s going to be tough finding this under 77 moving forward, but I guess that’s what limit orders and patience is for.
Hey Dave, long time follower, and I want to thank you (and Jason) for such great content over the years. I just had to ask is it just me, or do you and Jason look like father and son. Of course, since I am very friendly with Jason outside of the investing world, I will say you are much better looking 🤫 Again, many thanks. Been loading up on your top 4 etf recs / other DGI stocks for years, and am a very happy 53 y/o that doesn’t have to work for a few years now. I want to work, and do, but knowing that if something happened to me and I couldn’t, that 6 figure dividend stream I have coming in will cover the bills. That is the ultimate SWAN event.
Hi Andrew, Thanks for the kind words. I bet Jason is pleased that you said I look like his father rather than his brother. I’m glad DG investing has worked out well for you. -Dave
Thank you for the education; it’s Jan 2022 now and I’m just watching your video; I wish I found it earlier. SCHD is near $81 now, can you perhaps share what might be a fair price in 2022 for us that wants to get into SCHD? Thanks again.
The price is currently $77.70 or so. That is above your desired cost basis. How do you feel about it now? Been watching this one because of your analysis. I've been pretty aggressive and tactical but am wanting to settle down, mostly so I can buy and hold and don't have to watch things so closely.
I approach ETFs like I do stocks - ultimately it comes down to deep analysis of the individual ETF. I tried to demonstrate some techniques in this video. No opinion on QQQ. -Dave
I modified models that I use for stocks and applied them as best I could to SCHD. Overall, too much to go into here. If you want the details, click on the first bullet beneath the video, where it says "Prefer to read?" That takes you to the written article upon which this video was based. There I expalin in some detail how I did it. -Dave
are the dividends from these or any ETF qualified? do they pass the mustard as a QDI? QDI from individual stocks are taxed free as opposed to mutual fund dividends (1099). also not good to have them in a tax deferred account because when you draw from the account eg> RMD's those tax free dividends are taxed as ordinary taxable income rate. QDI stocks should be held in Roth or taxable accounts. that's my understanding
Qualified dividends. No REITs in SCHD. Whether dividends are paid by stock, ETF, or mutual fund is not relevant. What's relevant is the source of the dividend. If it's qualified at the source, it's qualified when it gets to you. Each investor's actual tax rate will vary depending on personal factors, such as their total taxable income. Everything drawn from a tax-deferred account is taxed at ordinary rates; doesn’t matter where it came from. My IRA is filled with stocks that pay qualified (and some unqualified) dividends. Consult your tax advisor for specific advice.
Dave - I got a question. NOBL had a div cut in 2017 and SCHD has none. However, your table shows the 5 yr DGR of NOBL > SCHD. I wrote to you about this on Seeking Alpha in the last few days under Ron1634. We have the exact same philosophy of what we want out of our investments. Eliminating NOBL because of a cut may be a blind spot. "I" have my own blind spots. We are about the same age, and I want to talk to you further about other investments I want your opinion on.
Hi, As I said on SA, SCHD's DGR comes on top of a much higher starting yield than NOBL. Glad to talk about any stock or ETF; if I don’t have any insight or opinion, I’ll simply tel, you that.
@@davevanknapp5344 - The midcap sister fund REGL has had even better div growth than NOBL (2018-2020) and starts at a somewhat better yield. Have you looked at that? I also started a new position in a very new and thinly traded ETF which might have as good or better prospects.
@@rydertruck3071 REGL too small and too young. My cutoff is 5 years of existence. “New and thinly traded” ETFs don’t attract my attention. I think I made my minimum requirements clear in the video. I want proven performance to consider, same as when I’m looking at stocks.
@@davevanknapp5344 - Just an FYI. From the Proshares website: NOBL AUM (Assets Under Management) =8.66B. REGL AUM = 1.0B (not that small). REGL ipo around 6.5 yrs ago. However, REGL is not the new thin ETF I was referring to.
This was an amazing video and I’ve really learned a lot but I’m new at this and I’ve been having a hard time trading, what platform should I use? Robinhood hasn’t been really helpful
My company might retire me soon, I have about 600k in my 401k in limited number of ETFs that the Schwab plan provides. I have mostly S&P 500 and some small and mid cap growth and value there. I want to transition it to growth and income. I have a bunch in commercial residential syndications for ~5-10% a quarter. I have about 25k in Vanguard and was going to put it 50/50 into VYM/VIG. I was going to roll all the 401k into SCHD, but now I'm curious what you would recommend. SCHD is above your $77 price right now.
Hi, I can't make personal recommendations. I'm sure you understand. Speaking personally, just for myself, I don't buy stocks (or an ETF) that is more than 10% above my calculation of fair price. -Dave
Someone should rate a dividend etf not just from total overall growth but if you are looking for maximum income NOW as well as capital preservation with capital growth as a bonus. Could you do that? Thanks Total growth is great but to access the money you have to sell portions and face a gains tax. How does this compare to dividend tax etc In other word, what’s the best income etf if you are 70?
With all due respect, the video is about growing an income stream. The rankings are not based on total return. I spoke about SCHD's total return to round out the full story, but it played no role in the ranking process. Please watch it again. Maximum income NOW from a fund wouldn’t even come from an ETF, it would come from a CEF. I have no recommendations among them.
I own VYM (3rd choice on your list) have you ever done a work up on it like you did SCHD? If so I would really like to see what you came up with. Let me know if that is possible, thank you for your time.
Hi, thanks for you video. Subscribed and liked! I have a question that you might be able to help me with If the dividend yield of SCHD is 2.8% and the growth per year is 12%, can I theoretically compute that the dividend yield will be 8.7% in 10 years? Since they reconstitute their stocks every year, how will they be able to hold that growth per year of 12%?
I know you asked Dave, but you can estimate that your yield on cost may be that. The current yield at that time would be somewhere between 2.5 and 3.5 because share prices increase about the same rate as dividend growth (normally). When they rebalance, they sell what has gone above 4 percent of holdings (meaning the share price is currently high, making the current div low), and buy what has gone below 4 percent (making the share price lower, and therefore the div higher) to rebalance the portfolio. This will naturally raise the dividends collected. This is all based on no dividend cuts. I hope that helps.
Well first, the yield on cost is what you are asking about. The ETF's current yield will stay about the same, because the price will move up at about the same rate as the dividend. You can’t predict the growth rate into the future. Neither can they. Their algorithm and rules for selecting and changing stocks has worked very well, but one can only speculate about how well it will work into the future. I like to think that the past holds clues about the future, but “past performance does not guarantee future results.”
If you had a large lump sum making almost zero in an account, and with schd and the s&p at current prices, would you invest heavily in schd etc. now or wait for some sort of pullback. I hate seeing money making nothing but if a small wait period would provide a better lifetime yield.... Do you have any kind of chart or reference that compares the statistics of buying in high with a lower yield versus income lost waiting for a pullback but higher yield?
I went briefly through valuation in the video. I think SCHD is selling at an acceptable price now, but it’s not a discounted price. Waiting has its own risks, such as the yield may continue to sink. My practice is to identify fair prices, and to buy when the price is in a fair range. -Dave
Love to see more focus on WHAT you're investing IN, Besides just how much they PAY! I want my $$ to be a Force for GOOD. It IS POSSIBLE! ESG/Impact investor. Any GREEN ETF's that pay dividends? Renewable energy, Social Equity, Green technology, LOW CARBON (No fossil fuels) etc?
Can you do one for Non-US dividend etfs, schwab this week came out with its own foreign dividend stock etf SCHY......maybe you can take a look and see what you like/don't like
Thanks for the suggestion. Unfortunately, I focus almost exclusively on stocks traded on US exchanges, so I don't think I could add much value to an analysis of ETFs focused on non-US stocks. Also, by the way, I would not consider an ETF that's been newly introduced, not even from Schwab or Vanguard, unless its underlying index has been back-tested and shows that the index would have compiled a dividend-growth streak of at least 5 years. That's just one of my basic ground rules. -Dave
Dave newbie question for ya. If I have 3 DIV ETFs that I add to each month am I losing anything by not concentrating funds? Does spreading things out a little affect compounding? Ty! : )
No. Each ETF will compound at its own rate, whether or not you also have other ETFs going. Of course, if one ETF is inherently “faster” than the other two, that one will compound faster. -Dave
My public portfolio does not hold SCHD. As I said in the video, I’m planning to add some shares if/when I can get them at good value. In my IRA, I hold about 5% in SCHD.
Hard to see your what rate of return you are referring to. Neither has a dividend increase streak longer than 1 year. Neither has matched the plain-vanilla S&P 500 over their lifetimes in price return. -Dave
No. I am not a fan of NOBL. Their expense ratio is way too high for a publicly available list of stocks - those that have increased dividends 25 years and are in the SP500. As a result of that expense ratio, NOBL's yield is about the same as the SP 500's yield, even though NOBL contains only Dividend Aristocrats. -Dave
Dave says, "If you like this content please click the thumbs up, then click the subscribe button and hit the notification bell."
Well Dave, I like all your content. Your a wise man!!
*blushing*
Thank you for doing this video, it was a big help to me. I subscribed and clicked the Bell, so please keep these good Videos coming. Do some more on these etf and some on common stocks. Thank you very much!!!!
I>
I do like SCHD, DIVO, NuSI, SPYD and PEY. Enjoyed your analysis.
👆👆Invest in a secure platform and broker where you will not lose your funds. I'm new to trading, but i met Mr. Steven Kurt here on RUclips where he teaches people to trade forex and stocks. which he guides me with a super platform and amazing strategy. I thought it was a scam, but finally I cashed my first $ 57,000 profit last week, he is very reliable and honest,he always tells me the actual time for buying and selling with 100 profit from his one-on-one master training...Stay bless 👆👆
SCHD, VYM, HDV, DJD, DGRO are my favs for low expense ratios. Awesome video as always
I originally held VYM, but sold and moved into SCHD after about 6 months. Very happy with it.
Literally the same move. Better growth and good Div at a smaller price point. Yes please.
My two favorite monthlys are QYLD and RYLD... Great video.
I like your very clear explanation. I only need to watch your videos once to get it, whereas other investment videos fling field jargon around so quickly its like watching a video in another language. I'm subscribing! Thanks!!!
Only ETF Dividend that I have in my portfolio, thanks for doing a video on this. Great value and explaining SCHD 🙏🏾
Good video!
As of this weekend, 9/7/22, NAV for SCHD has dropped to $67.59, for a yield of 3.35%.
One thing you did leave out, is the difference between an ETF and a mutual fund. ETFs typically have a lower management expenses.
I like ETF’s because they are easy to get out of, where as a Mutual Fund can take a couple of days. When a market is showing a massive week long drop you can bailout. Or if the market rotates to a different market theme you can rotate quickly as well.
Best dividend video I’ve found on RUclips
Fine video. I appreciate your presentation style and clarity. Thanks.
Thank you for making this. It hit home for me as my stepmother is in the situation you discussed with managing a stock portfolio after my dad’s unexpected passing.
I have been following DVK for many years and highly respect him and his advice. I do not own SCHD yet but rather enjoy holding several dividend growth stocks. This is certainly a consideration once I am no longer interested in managing my own portfolio. I look forward to future videos from DVK.
Thank you for the energy put into great presentations. Just came across this, very thoughtful in the organization! Thank you
Excellent video and analysis. Thank you for taking the time to share this.
SCHD plus some REITs and some oil and gas companies makes a good portfolio with a good yield.
Thanks for the great info in your video. I also have SCHD. What will be a close second to SCHD in your opinion, DGRO?
I love your positivity and honesty
Thank you so much for your video. Very well explained and I learned a lot. Subscribed and looking forward to see more videos from you. 👍😀👍 Just bought some SCHD last week after researching and will continue to buy 😄
Thanks for providing list of top rated Div ETFs
Is there something similar for foreign stocks? SCHD is 100% US-based companies, although many of them are internationals. It'd be nice to diversify into other countries and currencies; they have lower valuation and higher yield too.
SCHY is the foreign version of SCHD. Just introduced last year.
Love it! Subscribed! Thanks so much for sharing!!
Very good vidéo. First i ever watch from You and looking foward to more contente.
Would you consider JEPI ETF a good or bad buy? A lot of dividend investors are talking about it, but I am not sure.
👆👆Invest in a secure platform and broker where you will not lose your funds. I'm new to trading, but i met Mr. Steven Kurt here on RUclips where he teaches people to trade forex and stocks. which he guides me with a super platform and amazing strategy. I thought it was a scam, but finally I cashed my first $ 57,000 profit last week, he is very reliable and honest,he always tells me the actual time for buying and selling with 100 profit from his one-on-one master training...Stay bless 👆👆
See my video on JEPI here: ruclips.net/video/NroOy32qwvA/видео.html
Great presentation Dave. I have been reading your work for years on SA. You are a big part of why I switched to DGI. Your a wonderful writer, and are great at videos too. My biggest holding is SCHD. The hardest part of holding it is that anxious three month wait for my next dividend. 😁
Just have faith that the overall direction is up, even when the next one is 20% less than the last one. 😎
Well. I just got the dividend. It was larger than a quarter ago. Yes.
@@supersteve8305 Yay!
This was really helpful for me, thank so much for sharing. I will subscribe!
Thanks, great material
Hi Dave I always look forward to your videos. Your a great asset to this channel.
Thanks Billy. That is a kind thing to say. -Dave
Great analysis in the video Dave. I have a feeling that it’s going to be tough finding this under 77 moving forward, but I guess that’s what limit orders and patience is for.
SCHD's average price since this video was posted has been about $76.50, so it has been available under $77. It's also spent some time above $77. -Dave
SCHD ended today at $74. (Friday June 18)
Thank you so much for this analysis. Much appreciated.
Happy to see my #1 investment in this analysis. Thanks Dave!
Hey Dave, long time follower, and I want to thank you (and Jason) for such great content over the years. I just had to ask is it just me, or do you and Jason look like father and son. Of course, since I am very friendly with Jason outside of the investing world, I will say you are much better looking 🤫 Again, many thanks. Been loading up on your top 4 etf recs / other DGI stocks for years, and am a very happy 53 y/o that doesn’t have to work for a few years now. I want to work, and do, but knowing that if something happened to me and I couldn’t, that 6 figure dividend stream I have coming in will cover the bills. That is the ultimate SWAN event.
Hi Andrew, Thanks for the kind words. I bet Jason is pleased that you said I look like his father rather than his brother. I’m glad DG investing has worked out well for you. -Dave
Great video! SCHD is my favorite way to diversify my dividend holdings. I am wanting to make a similar video for my channel, thank you the content!
Dave,
What you think of QYLD ETF?
Just curious...🙂
Join the other 143k who have viewed my video on QYLD here: ruclips.net/video/0exa28omOTg/видео.html
Thanks!🙂👍
73's from,
Tim
Thank you great work
SUPER useful video. Thank you so much!
Thank you for the education; it’s Jan 2022 now and I’m just watching your video; I wish I found it earlier. SCHD is near $81 now, can you perhaps share what might be a fair price in 2022 for us that wants to get into SCHD? Thanks again.
Look at current yield instead of price. 2.8-2.9% yield indicates a fair price.
@@davevanknapp5344 Thank you
Thank you so much
Thankfully something I already own!
The price is currently $77.70 or so. That is above your desired cost basis. How do you feel about it now? Been watching this one because of your analysis. I've been pretty aggressive and tactical but am wanting to settle down, mostly so I can buy and hold and don't have to watch things so closely.
Check the current yield. Anything above 2.8% or 2.9% indicates a good value for SCHD.
Nice job. Hard to beat SCHD without more risk.
wonderful presentation , loud and clear
Great video. Thanks so much Dave!
I am new to the channel so I was wondering if you considered Closed End funds?
I haven’t invested in any.
Excellent Video. Keep them coming.
Great video. Details perfect.
Thank you. Excellent explanation; clear and consice.
Great content. This man is honest.
I wonder if anyone know how Dave has determined the fair value of SCHW
Long. SCHD and JEPI
Great video, thank you!
Great info.
Very good and thorough explanation.
Trouble is May 2021 to Oct 2022 the price of all these ETFs fell 7% - 10%. Easy to beat with risk free CDs and T-Bills.
any thoughts on SCHY ? any thoughts on having international exposure? thanks
My favorite ETF and I have lots of it. Thanks for the info !
Great Info! What's your opinion on other ETFs like QQQ?
I approach ETFs like I do stocks - ultimately it comes down to deep analysis of the individual ETF. I tried to demonstrate some techniques in this video. No opinion on QQQ. -Dave
@@davevanknapp5344 Thank you!
Nice video how do you know that the fair price of a schd etf ? How to find out the fair price of the etf ?
I modified models that I use for stocks and applied them as best I could to SCHD. Overall, too much to go into here. If you want the details, click on the first bullet beneath the video, where it says "Prefer to read?" That takes you to the written article upon which this video was based. There I expalin in some detail how I did it. -Dave
Excellent analysis of schd. Do you have your own channel, Dave?
No, I’m posting my videos on this channel, Dividends & Income. It’s a team effort.
are the dividends from these or any ETF qualified? do they pass the mustard as a QDI? QDI from individual stocks are taxed free as opposed to mutual fund dividends (1099). also not good to have them in a tax deferred account because when you draw from the account eg> RMD's those tax free dividends are taxed as ordinary taxable income rate. QDI stocks should be held in Roth or taxable accounts. that's my understanding
Qualified dividends. No REITs in SCHD.
Whether dividends are paid by stock, ETF, or mutual fund is not relevant. What's relevant is the source of the dividend. If it's qualified at the source, it's qualified when it gets to you.
Each investor's actual tax rate will vary depending on personal factors, such as their total taxable income.
Everything drawn from a tax-deferred account is taxed at ordinary rates; doesn’t matter where it came from. My IRA is filled with stocks that pay qualified (and some unqualified) dividends. Consult your tax advisor for specific advice.
very useful, thank you! stumbled on the video by accident and watched it all, great for new investors
Subscribe to the channel, then you won't need to stumble on future ones! Thanks for watching and commenting. -Dave
thanks for sharing, enjoyed
Dave - I got a question. NOBL had a div cut in 2017 and SCHD has none. However, your table shows the 5 yr DGR of NOBL > SCHD. I wrote to you about this on Seeking Alpha in the last few days under Ron1634. We have the exact same philosophy of what we want out of our investments. Eliminating NOBL because of a cut may be a blind spot. "I" have my own blind spots.
We are about the same age, and I want to talk to you further about other investments I want your opinion on.
Hi, As I said on SA, SCHD's DGR comes on top of a much higher starting yield than NOBL. Glad to talk about any stock or ETF; if I don’t have any insight or opinion, I’ll simply tel, you that.
@@davevanknapp5344 - The midcap sister fund REGL has had even better div growth than NOBL (2018-2020) and starts at a somewhat better yield. Have you looked at that?
I also started a new position in a very new and thinly traded ETF which might have as good or better prospects.
@@rydertruck3071 REGL too small and too young. My cutoff is 5 years of existence. “New and thinly traded” ETFs don’t attract my attention. I think I made my minimum requirements clear in the video. I want proven performance to consider, same as when I’m looking at stocks.
@@davevanknapp5344 - Just an FYI. From the Proshares website: NOBL AUM (Assets Under Management) =8.66B. REGL AUM = 1.0B (not that small). REGL ipo around 6.5 yrs ago. However, REGL is not the new thin ETF I was referring to.
Do you have a video on the determining the fair price on the fund/ETF? SCHD is sitting at $81, so it's way over your target price.
Check the current yield, because that moves with dividend increases. Any yield over 2.8% or 2.9% is good valuation, in my opinion.
@@davevanknapp5344 Thank you.
Yeah! I put a good amount in SCHD at the beginning of the pandemic. I like it.
Man, if you caught it at those valuations and high yield, you did good! -Dave
This was an amazing video and I’ve really learned a lot but I’m new at this and I’ve been having a hard time trading, what platform should I use? Robinhood hasn’t been really helpful
Try Fidelity or Schwab
What is your opinion on NUSI which is based on puts and calls and pays over 7% monthly?
Sorry, I know nothing about it. Sounds like a CEF, not an ETF. -Dave
Sold it over JEPI. couldn’t be happier…
Great way to invest at relatively low risk.
Brilliant analysis! Thanks.
Awesome video.. thanks a lot.
My company might retire me soon, I have about 600k in my 401k in limited number of ETFs that the Schwab plan provides. I have mostly S&P 500 and some small and mid cap growth and value there. I want to transition it to growth and income. I have a bunch in commercial residential syndications for ~5-10% a quarter. I have about 25k in Vanguard and was going to put it 50/50 into VYM/VIG. I was going to roll all the 401k into SCHD, but now I'm curious what you would recommend. SCHD is above your $77 price right now.
Hi, I can't make personal recommendations. I'm sure you understand.
Speaking personally, just for myself, I don't buy stocks (or an ETF) that is more than 10% above my calculation of fair price. -Dave
@@davevanknapp5344 Thank you, Understood. Do you have a published way to determine fair price?
Someone should rate a dividend etf not just from total overall growth but if you are looking for maximum income NOW as well as capital preservation with capital growth as a bonus.
Could you do that? Thanks
Total growth is great but to access the money you have to sell portions and face a gains tax. How does this compare to dividend tax etc
In other word, what’s the best income etf if you are 70?
With all due respect, the video is about growing an income stream. The rankings are not based on total return. I spoke about SCHD's total return to round out the full story, but it played no role in the ranking process. Please watch it again.
Maximum income NOW from a fund wouldn’t even come from an ETF, it would come from a CEF. I have no recommendations among them.
@@davevanknapp5344 Dave re-read my last comment… that’s all I was looking for. 🙃
Any particular reason why SPYD didn’t make your list?
Too small. Barely over $4B in assets, less when I recorded the video.
Great information. Thank you
I own VYM (3rd choice on your list) have you ever done a work up on it like you did SCHD? If so I would really like to see what you came up with. Let me know if that is possible, thank you for your time.
I’ll see if I can do VYM sometime. Best of luck with it. -Dave
VYM has been going thru the roof. SCHD is half the price, should I sell of the VYM and jump into the SCHD?
I started a new position in SCHD, in my ROTH, figured it could not hurt.
JEPI for the win .
Long. JEPI and SCHD
Hi, thanks for you video. Subscribed and liked! I have a question that you might be able to help me with
If the dividend yield of SCHD is 2.8% and the growth per year is 12%, can I theoretically compute that the dividend yield will be 8.7% in 10 years? Since they reconstitute their stocks every year, how will they be able to hold that growth per year of 12%?
I know you asked Dave, but you can estimate that your yield on cost may be that. The current yield at that time would be somewhere between 2.5 and 3.5 because share prices increase about the same rate as dividend growth (normally). When they rebalance, they sell what has gone above 4 percent of holdings (meaning the share price is currently high, making the current div low), and buy what has gone below 4 percent (making the share price lower, and therefore the div higher) to rebalance the portfolio. This will naturally raise the dividends collected. This is all based on no dividend cuts. I hope that helps.
Well first, the yield on cost is what you are asking about. The ETF's current yield will stay about the same, because the price will move up at about the same rate as the dividend.
You can’t predict the growth rate into the future. Neither can they. Their algorithm and rules for selecting and changing stocks has worked very well, but one can only speculate about how well it will work into the future. I like to think that the past holds clues about the future, but “past performance does not guarantee future results.”
I own SCHD and VYM 🤑
If you had a large lump sum making almost zero in an account, and with schd and the s&p at current prices, would you invest heavily in schd etc. now or wait for some sort of pullback. I hate seeing money making nothing but if a small wait period would provide a better lifetime yield....
Do you have any kind of chart or reference that compares the statistics of buying in high with a lower yield versus income lost waiting for a pullback but higher yield?
I went briefly through valuation in the video. I think SCHD is selling at an acceptable price now, but it’s not a discounted price.
Waiting has its own risks, such as the yield may continue to sink. My practice is to identify fair prices, and to buy when the price is in a fair range. -Dave
@@davevanknapp5344 just a quick question from my side - how do you determine the FV of the ETF?
@@johanwesthuyzen7422 I answered that elsewhere in this comment stream. Too long to repeat. -Dave
@@davevanknapp5344 thank you, i might have missed it. I really enjoy your videos - thank you
Nice..
Do more video like this for qqq and vti 👏🏻
I don’t think those fall into my area of expertise, which is dividend growth investing.
Love to see more focus on WHAT you're investing IN, Besides just how much they PAY! I want my $$ to be a Force for GOOD. It IS POSSIBLE! ESG/Impact investor. Any GREEN ETF's that pay dividends? Renewable energy, Social Equity, Green technology, LOW CARBON (No fossil fuels) etc?
Thanks Dave!
Can you do one for Non-US dividend etfs, schwab this week came out with its own foreign dividend stock etf SCHY......maybe you can take a look and see what you like/don't like
Thanks for the suggestion. Unfortunately, I focus almost exclusively on stocks traded on US exchanges, so I don't think I could add much value to an analysis of ETFs focused on non-US stocks.
Also, by the way, I would not consider an ETF that's been newly introduced, not even from Schwab or Vanguard, unless its underlying index has been back-tested and shows that the index would have compiled a dividend-growth streak of at least 5 years. That's just one of my basic ground rules. -Dave
Well done.
Thank you for the information. I do too I'm investing for the future of my kids.
I'm investing for the PLANET so we HAVE a 'Future'!
Gracias por la información Sr
Great content.
Thank you, sir.
I didn’t know Walter White was a dividend investor too.
Great video
Love all these videos, but Dave crushes it.
Nice video 😊
Great video analysis! Enjoyed watching 👍
I'm team SCHD.
Is there such a thing as a Ex Div Date for ETF's?
I own 7 of the top 10 of SCHD.
Yes. They usually pay the dividends about a week or two after declaring them, so the ex-div date comes on you real fast. -Dave
i went though Fidelity
Dave newbie question for ya. If I have 3 DIV ETFs that I add to each month am I losing anything by not concentrating funds? Does spreading things out a little affect compounding? Ty! : )
No. Each ETF will compound at its own rate, whether or not you also have other ETFs going. Of course, if one ETF is inherently “faster” than the other two, that one will compound faster. -Dave
What % of your portfolio is in SCHD?
My public portfolio does not hold SCHD. As I said in the video, I’m planning to add some shares if/when I can get them at good value.
In my IRA, I hold about 5% in SCHD.
Low rates of returns. Double your money every 20 years with his advice. I prefer HIPS or YYY.
Hard to see your what rate of return you are referring to. Neither has a dividend increase streak longer than 1 year. Neither has matched the plain-vanilla S&P 500 over their lifetimes in price return. -Dave
Would you buy NOBLE along with this?
No. I am not a fan of NOBL. Their expense ratio is way too high for a publicly available list of stocks - those that have increased dividends 25 years and are in the SP500. As a result of that expense ratio, NOBL's yield is about the same as the SP 500's yield, even though NOBL contains only Dividend Aristocrats. -Dave
VYMI ( vanguard international high dividend ) one of the highest dividend i came across
High dividend was only one factor. What does its annual growth rate look like?