Unveiling SCHD: Schwab's Dividend Equity ETF, Reconstitution Process, and Dividend Information for Asset Management
SCHD - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| SCHD | ETF | Equity Dividend ETF | Dividend Equity | Quarterly | US | 0.06% | Schwab |
SCHD Overview - The Schwab U.S. Dividend Equity ETF
The Schwab U.S. Dividend Equity ETF (SCHD) is a passively managed fund designed to mirror the performance of the Dow Jones U.S. Dividend 100 Index. It aims to provide investors with income from high dividend-yielding U.S. equities, alongside the potential for capital appreciation.
SCHD invests in companies with a consistent history of dividend payments and strong financial health, emphasizing dividend growth as a key criterion for stock selection, with the goal of delivering stable returns over the long term.
As of Apr 02, 2024, SCHD had an average dividend yield of 3.92%, according to Morningstar. Investors also monitor SCHD’s latest stock price which was $76.652 and dividend history on platforms like TipRanks.
SCHD - Price / Yield
SCHD - Portfolio and Asset Allocation
The Schwab U.S. Dividend Equity ETF (SCHD) is a fund focusing on large-cap, dividend-paying stocks across various sectors. The top holdings exhibit a diverse mix of companies from different industries, such as technology (Microsoft, Nvidia), consumer discretionary (Apple Inc., Amazon.com), communication services (Meta Platforms, Alphabet Inc.), and consumer staples (Costco Wholesale Corp.).
The sector breakdown further emphasizes the fund's diversification strategy, with significant allocations to Technology (49.41%), Communication Services (16.48%), Consumer Cyclical (15.14%), and Healthcare (6.24%). This allocation suggests a balanced approach between income generation and potential for growth while managing risk through exposure to various sectors.
The presence of companies like Microsoft, Nvidia, and Costco Wholesale Corp. among the top holdings underscores a focus on established, dividend-paying companies with strong market positions. These companies typically have a history of consistent dividend payouts and are perceived as stable investments.
However, it's noteworthy that the fund also includes exposure to sectors like Communication Services (16.48%) and Consumer Cyclical (15.14%), which may exhibit higher volatility and sensitivity to market conditions. Nonetheless, the fund's allocations to these sectors indicate a balanced approach aimed at avoiding overexposure to potentially risky areas.
Top 10 Holdings
As of April 19, 2024, the top 10 holdings of the Schwab U.S. Dividend Equity ETF (SCHD) are:
| Name | Weight |
|---|---|
| Microsoft | 8.82% |
| Apple Inc | 7.58% |
| Nvidia Corporation | 6.22% |
| Amazon.Com, Inc. | 5.47% |
| Meta Platforms, Inc. | 5.16% |
| Broadcom Inc. | 4.42% |
| Alphabet Inc. Class A | 2.70% |
| Alphabet Inc. Class C | 2.62% |
| Costco Wholesale Corp. | 2.39% |
| Tesla Motors | 2.12% |
Asset Allocation
The Schwab U.S. Dividend Equity ETF (SCHD) has the following asset allocation as of April 19, 2024:
| Sector | Weight |
|---|---|
| Technology | 49.41% |
| Communication Services | 16.48% |
| Consumer Cyclical | 15.14% |
| Healthcare | 6.24% |
| Industrials | 4.76% |
| Consumer Defensive | 3.80% |
| Basic Materials | 1.63% |
| Utilities | 1.27% |
| Energy | 0.51% |
| Financial | 0.50% |
| Real Estate | 0.26% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
SCHD Dividend Data |
The Schwab U.S. Dividend Equity ETF (SCHD) pays quarterly dividends. The most recent ex-dividend date was on Mar 20, 2024, with a dividend payment of $0.611 per share on Mar 25, 2024. |
SCHD Dividend Yield |
As of Apr 18, 2024, the 30-day SEC yield for SCHD is 3.92%. This means that for every $100 invested in the fund, investors would receive approximately $3.92 in dividends per year, assuming the yield remains constant. |
SCHD Dividend History |
SCHD has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund. |
SCHD Dividend Growth |
SCHD's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed. |
SCHD Dividend Stability |
SCHD aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of larger U.S. companies. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio. |
SCHD - Chart
SCHD - Comparative Analysis
Let's compare SCHD with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)
| SCHD | VIG | DVY | |
|---|---|---|---|
| Investment Focus | High-quality, dividend-paying stocks of larger U.S. companies | High-quality U.S. companies with a history of increasing dividends | High dividend-yielding U.S. stocks |
| Current Yield | 3.53% | 1.85% | 3.76% |
| Expense Ratio | 0.06% | 0.04% | 0.39% |
| Investment Strategy | Actively managed, focuses on attractively valued companies with consistent dividend growth potential | Passively tracks the NASDAQ US Dividend Achievers Select Index | Passively tracks the Dow Jones U.S. Select Dividend Index |
| Strengths | Potential for higher returns through active management, emphasis on dividend consistency and growth | Low expense ratio, focus on companies with a strong history of dividend increases | High dividend yield, broad exposure to dividend-paying stocks |
| Weaknesses | Higher expense ratio than passively managed funds, potentially higher volatility | Less emphasis on dividend growth compared to actively managed funds like SCHD | Higher expense ratio compared to SCHD and VIG, potential for lower returns |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 17, 2024 | $0.18 | Mar 18, 2024 | Mar 25, 2024 |
| Feb 19, 2024 | $0.18 | Feb 20, 2024 | Feb 27, 2024 |
| Jan 21, 2024 | $0.18 | Jan 22, 2024 | Jan 29, 2024 |
| Dec 27, 2023 | $0.17 | Dec 28, 2023 | Jan 07, 2024 |
| Nov 19, 2023 | $0.16 | Nov 20, 2023 | Nov 28, 2023 |
News
Technical Analysis
Additional Information and Risks
Investing in SCHD, the Schwab U.S. Dividend Equity ETF™, entails various factors to consider. SCHD focuses on dividend-paying stocks issued by U.S. companies, aiming to track the Dow Jones U.S. Dividend 100 Index. As of 2024, SCHD pays dividends quarterly, with its dividend payout ratio reflecting its commitment to shareholders.
It's crucial to note SCHD's investment strategy, which prioritizes high-dividend-yielding stocks. However, this focus may lead to a reduction in the fund's performance during periods of market volatility. Additionally, SCHD's performance relative to its peers and the broader market, as measured by the S&P 500 index, should be considered.
Investors should also be aware of the fees and expenses associated with SCHD, including management fees charged by Charles Schwab Investment Management (CSIM). While SCHD's expense ratio is relatively low, these costs can still impact overall returns.
Furthermore, SCHD's dividend history, dividend growth, and portfolio allocation should be analyzed to understand its historical performance and future potential. Investors should also assess SCHD's sector weighting, as certain sectors may perform differently under varying market conditions.
Overall, while SCHD offers the potential for dividend income and growth, investors should conduct thorough research, considering factors such as risk-adjusted returns, fund performance, and market dynamics before making investment decisions.