I love this as a huge sports fan. I could not agree more. I love having a balanced team with VOO as my all around player, SCHD is my defensive rim protector, and VGT and QQQM are launching 3 pointers left and right to score points (: When VGT and QQQM start throwing up bricks, SCHD is there to shut down the other teams fast break.
Boooo! Just kidding, I like the Bills. I'm a PNW guy so I have to be a Seahawks fan by default (I go to a couple games each year). My diehard, branded at 3 years old, team that I (sadly) watch every game of to this day is the Portland Trail Blazers. I know, I know, it has been ROUGH lately (: I was born in Portland and my dad loves the Blazers. He went to a couple of the home games in 1977 when we won our first (and maybe last lol) title. My other team 'was' the Sonics. And I love the Mariners as well. My college football team, and this gets me in trouble in WA State, is the Oregon Ducks (waves for everyone to bring on the boos).
I love it! Part of my account is VGT complimented by SCHD. This has been a great one-two punch. When I first saw the dividend for this past quarter for SCHD, I thought it was a typo. Thanks for your great videos Jeff!!
Oh man, you and me both Robert. I saw it was just over 82 cents and just stared at it for a minute. It was awesome. I hope SCHD has a turn around in the coming months / year on its price return as well. I don't hold it to 'beat the market', but it has been a slow 2 years. I'm not going anywhere though. I love the underlying methodology of SCHD. It pairs so nicely with the growth ETFs.
Fantastic info ! Being 4-5 years away from retirement, I will use SCHD as a buffer to minimize downturns, your presentation of what SCHD is and how it fits into a portfolio is a individual decision, and like you have said now and before, when the tide turns and it always will, having a substantial amount is SCHD will be advantageous, especially those nearing retirement, and also a good things when rate cuts will begin at some point - keep up with these great learning videos !
Just shared this with the caption “Jeff Teeples is my spirit animal. 😂 I don’t need to make a SCHD STAN UA-cam channel because he’s saying everything I would, just much smarter.” Another great video Jeff! 😎
Hey Kevin. I think that is a great question. DGRO is a nice hybrid fund. It has a high dividend yield *FOR* a *dividend growth* centric fund. It starts at 2.36%. I know this feels low, but it's 'like' competition, VIG, starts at 1.83%. DGRO is screened to specifically grow its dividend. SCHD has ironically been better over the past 10 years, but DGRO is very, very consistent in all markets. SCHD 'almost' didn't grow last year. DGRO never came close to that. DGRO dividend growth: 1Y = 8.01%, 3Y = 11.65%, 5Y = 10.26% and 10Y = 8.44%. Again, SCHD has been higher on dividend growth. I personally do not think that will continue (I think both will grow the dividends, but DGRO will rise more consistently). DGRO has an incredible mix of growth / tech / dividend payers. It's top 10 holdings are: Microsoft Corp 4.01% JPMorgan Chase & Co 3.41% Broadcom Inc 3.40% Exxon Mobil Corp 3.11% UnitedHealth Group Inc 2.67% Visa Inc Class A 2.40% Procter & Gamble Co 2.26% Mastercard Inc Class A 2.16% Costco Wholesale Corp 2.09% This is a very nice mix that has outperformed SCHD by a lot recently (including dividends reinvested, talking total returns here). Here are the total return comparisons for the past 3 years and less DGRO: YTD 8.46%, 1Y 15.11%, 3Y 22.31% SCHD: YTD 3.04%, 1Y 9.94%, 3Y 13.71% I think DGRO gets a nice mix between dividend yield, dividend growth, and price appreciation (holding tech companies that SCHD misses). This is actually why I like SCHD better. I hold VGT / VOO / QQQM, so I want less overlap with my value/dividend holding. DGRO has a lot of overlap with the growth funds. But, on the flip side, DGRO does a lot of things well. It is a jack of all trades fund. And even better, it holds 416 companies in nice balance. All of them have grown their dividends for multiple years in a row.
Great video, Jeff! Your last video (no bonds) and this one is, in my mind, reinforcing my decision to go 50% VOO, 25% SCHG, and 25% SCHD. My plan is to rebalance 5% per year in favor of SCHD from SCHG as I get closer to my retirement window. Lets grow!
That is an awesome balance Nick. I love the plan to transition more to SCHD when you need the cash in retirement. I am naturally going to get my S&P 500 higher as well because we are still maxing my wife's 401k as our only 'default like a bill investing'. My money used to even everything out. I'm hoping this channel slowly grows so I can help even it out a bit more. But, if one thing is going to get overweight right now, the S&P 500 is my pick. So it's not the end of the world (:
@@JeffTeeples SCHG is rolling as of late and it’s helping carry my SCHD holding. I’ll take what the S&P gives, as well. As I’ve learned through my own investing journey and the advice of friends, FOMO is real. I’m happy with this mix and have learned to stay the course!
I’m up to 590 shares of SCHD now. Love it paired with my growth positions. Seems like I’m always trying to figure out how I can invest more money. The recent dividend payment bought me 6 shares of SCHD. The 3rd quarter dividend should buy me at least that many shares again.
Very nice. I love the feeling of reinvesting dividends! It is so nice to accumulate more shares over time. I can't wait for the 3rd quarter dividend for SCHD.
Only have 5% in SCHD with 7 years until retirement. Slowing moving to get it to 1/3 of my portfolio for retirement. I am heavy growth right now at 65%. I would be 90% growth if I had the option. Limited in some of my funds to a Core.
I think that is a nice strategy Daman. Everyone has different risk tolerances and goals, but I think it makes sense 'in general' to have more growth when accumulating wealth and more dividend + dividend growth in retirement. I personally go with an even mix during accumulation, but most people roll with growth when the downs won't hurt as bad long-term (still DCA in during working years, so ultimately accumulating more wealth on the dip).
I hlam long SCHD. I have 5 in my taxable account and 15 in my roth. What is your growth position? I also have swppx in both and swlgx. In the taxable account I ko and pfd and f 👍🏾.
Dang, nice! Also, love the combo. Eventually VGT and QQQM will drop, and SCHD will keep the ship steady. When the masses start saying SCHD is the best and VGT and QQQM are terrible... That is when we will load up on more QQQM and VGT (:
Did you know that putting your $82,000 into a 5% p.a high interest bank account would bring you in more money per year than what you received in dividends
@@user-neo8888 Thanks for watching and commenting. In the first year, sure. Cash-flow over time? Not even ball park close, SCHD wins. Compound truly is the 8th wonder of the world (dividend growth in this case).
I appreciate it! Thank you for the consistent support and for the *EXTRA* support of being a member. I want to make more Thursday videos in the future. It is difficult right now with my life-flow (kids are 2 and almost 4). When they go to school full time I hope to consistently get 2 videos out there per week. Possibly other stuff too. It will be a slow build in the meantime. One thing for sure, I'm not going anywhere (: I'll be here for many years to come. I quit my job to help as many people as possible reach financial freedom & to spend more time with my kids.
I love how interactive you are with your viewers.. it could be hard to keep up with as your channel continues to grow, but that’s a good problem to have.. have a good day..
I appreciate that feedback. My goal is to help as many people as possible with this stuff. I try to get back to every comment. It is time consuming, but it is worth it. When the channel grows (hopefully), I should naturally have more time to put into it with where I'm at in life at that time. Right now is a tough 'free time' state with a couple kids under 4 y/o.
My portfolio is currently 60% QQQM and 40% SCHD. It's tempting to go all in on QQQ, but like you said it is important to have a balanced portfolio with etfs that compliment each other.
I think that is a great mix. Your patience will very likely pay off, long-term. QQQM may very well make more money in the next 20 years. But we will never know that for certain. Your well balanced approach will set you up nicely for more scenarios. There is something to be said for having a stable floor and sleeping well at night. Plus, SCHD 'may' crush QQQM in the next 10 years. I wish I had a crystal ball (:
Time will tell. Value has been better in many long stretches in the past. That is the point. I think QQQM and VGT will 'usually' outperform SCHD and VOO in 'most' markets. But when they fall...
I think one most aren’t considering is that Schd is the perfect etf to have and hold to avoid having your retirement sitting in bonds. Bonds are safe but give you squat. Yeah Schd is not flashy like qqq or Voo but it doesn’t have the volatility either.
I completely agree with this Kevin. I know people are down on SCHD right now because the other ETFs are smoking it on total returns. But I think when we zoom out 10 to 20 more years, people will commonly consider it the perfect 'floor protector + dividend grower'. Right now, traditionalist still get furious when stuff like this is mentioned. It is early in the journey. I think it will be fun to see the sentiment change long-term.
Holy TEEPS Thursday Batman…!!!A TEEPS video drop mid week..?? How wonderful. Keep on spoiling us. Great SCHD video lesson Jeff. Not a rocket ship but a steady Eddie that keeps plugging away dropping dividends to you. Thank you so much for the video. Happy Independence Day to you and the family. Happy Birthday - soon - and lastly have a wonderful weekend together.
Thanks Lance! Enjoy the 4th with your (same birthday!) wife (: Now I need to think about how I'm going to get next Sunday's video done with my wife having a few days off and wanting to hang with her & the kids. Night owl time!
Very nice! TQQQ is too crazy for my blood, haha. BUT it has done incredibly well. I'm certainly not saying it is a bad investment. SCHD is there to help smooth the ride for you. Love the overall balanced strategy.
I think having a large position in SCHD is a great move in retirement. You are right int hat it has been a pretty lame couple years on the price growth front. But the solid yield and dividend CAGR keep it producing in these times. When the growth/tech run cools off, you'll be a happy camper. SCHD will protect the portfolio value that other holdings have built over the past couple years.
Thanks for watching and for dropping a comment. Major bag alert! Great job holding SCHD as the investing world told us to go 100% growth (: These swings will always happen, and it is great to have a balanced portfolio.
Hi Jeff, every time after watching your video, I also enjoy reading comments from the other investors and your responses, some echos my own situations and found helpful. Thanks again for the great video!
Hi Cindy! Thank you for watching and dropping a comment. I appreciate the support you have given the channel. I try to do my best to answer the questions in detail. I'm here for this journey with the community.
I love the accumulation process. Your shares only go up as your buy regardless of the current price. This is how I brace myself for VGT volatility. My portfolio was down 6 figures in 2022, and as much as it hurt, I couldn't help to notice my 'all-time high' share count for everything (: These low-cost, passively managed ETFs always 'eventually' hit all time highs. I like our odds with our shares never going down, and new all-time highs being inevitable in the future.
I think we all, as investers, focus on what is doing well in the moment. It is hard to focus on what a long term goal is when we think account growth in the now is the right path. Maintaining our portfolio balance will ensure we buy on the dip. If growth was to spend two years dropping while value was increasing, we would all be reminiscing the days of SCHD being under $80/share. Thanks for helping us to stay the course by reminding us why we want Value/Dividend & Growth together.
Spot on Roy. Couldn't have said it better myself. It is tempting to jump on the new trends that everyone is raving about. Especially when the charts are blowing up and 'the few' (that were in all along) are getting crazy rich. If it was that easy everyone would be rich. We hear about the 1 person that made it big but we mysteriously don't hear about the other 99 that lost money doing it or something similar. It is dangerous, and a major reason I started this channel. Of course I do think it is important to stay open-minded in investing. There may be some ETFs or new strategies that end up being amazing for the portfolio. I like to see more data before I dive in, but I'm sure things will change over the long haul and I don't want to be the guy saying 'because this is the way I've always done it'! It is a fine balance.
Thanks for watching and for the question. The answer is a few of them, haha. But this one shows that SCHD is better than a 5% interest savings account (that hasn't existed) over the past decade. ua-cam.com/video/zvsiEqyv75Q/v-deo.htmlsi=Z48XABpeAunYvstn
Hey Chris. Thank you for the positive feedback about the channel. I appreciate it. I don't think the rate cuts (or increases) have a 'long-term' impact on SCHD looking to the next 20 years and beyond. I do think that cuts will help it in the short term though. The drop of money markets and HYSA make SCHD a comparatively more attractive place to stash 'cash' (well, cash-flow really) for the long-run. People like me will be there all along with target allocations (growth vs value, the underperformer gets my new dollars in all markets). But a lot of people like to jump around, and I think SCHD will see more inflows as rates drop.
That is ball autographed by Clyde the Glide Drexler. He was my favorite player growing up, and is easily my favorite of all-time still. And oh wow did I just age myself (:
@@JeffTeeples it’s ok. I’m a couple years older than you. I liked watching Clyde. I was always a Celtics guy with Bird, McHale, Parrish, Ainge… Thanks for your response
Thanks Jeff - I am late to the SCHD party, but, thanks to your channel, I am holding. This video actually helps explains my abysmal performance over the past five years. I was too light on growth, and too heavy on value, and, even worse, too heavy on bonds - ouch! And, I am definitely hearing you when now I am too anxious to load up on growth just as growth becomes unsustainable. I am example A1 of - sometimes simple is better.
Hey Kent. Thanks for watching and for leaving a comment. I found myself on one extreme of the equation when I used to go with my gut. It may take a little time to get your target allocations as you slowly move assets or put your new dollars to the underweight areas. The beauty is that once you are there the target allocation investing will allow you to go on auto-pilot. Simply buy the underweight holding when new money goes in (or dividends get reinvested). It took me a while to find my favorite target allocations. There is definitely no one size fits all.
The share price has been stagnant for a couple years now. This has created an opportunity to add more shares at a reasonable price. All investments will look bad at times over a year or two. The secret is to buy the 'bad ones' as the others are high. Same goes for the other side. When value has a comeback and growth is crashing, it will be time to buy growth when everyone says it is bad. Target allocations will out 'math' any genius. It is impossible to not 'time the market' (relative terms) correctly if it is systemized.
I got a lil over $300 from SCHD last week. Love it! I just keep reinvesting though. Considering DGRO but the yield is a bit low so I’m not sure if it’s worth it.
Very nice on the $300 of qualified dividends! I think DGRO is another solid option. I see a bright long-term future for both. Thanks for watching and for dropping a comment.
Jeff, Thank you for the 4th of July video. I am watching twice each and every video you make 🙏. My question today is, you mention a lot that you load a lot of SCHD now because growth is going crazy and value not, and eventually value will go up and growth won't. Does it have to be one or the other? If growth doing well then value not and vise versa?
Hey Idan. Thanks for watching and for dropping a comment. I just got back from a 4th party (always have to leave early when I'm the one with toddlers lol). Growth and value are not always night and day different. There are many markets when they will go back and forth. At that time, I will be buying them equally to keep them at the target allocation. This has been quite the growth market, which is why I have been swooping up SCHD. The nice thing is that I never have to think 'hmm... what should I buy? What market am I in?'. This is because the portfolio will tell me. I assess the current allocation (by %), and buy the one that is underweight. It can mean buying a few shares of SCHD and VGT if they are 'about the same' in my portfolio. It has been very black and white lately, but normally it is a bit more gray.
Hey Jeff. I just noticed on M1 that you can choose to have dividends reinvested back into the underlying security that paid the dividend. If you don’t choose that option, any dividend that is paid gets evenly distributed into each ETF in the pie. Which option do you choose? I would like that option but if dividends are paid back into the security that paid it, would it cause the percentages to go out of wack causing automatic rebalancing issues???
I like the 'old way' of rebalancing in real-time. This will make it to where we don't have to rebalance our portfolio as often. Reinvesting in the security can get the holding out of whack. For example, if VGT paid a dividend it would be more VGT (even though SCHD is underweight). Some people like to let their winners run like that. There is no 'right' way to do it. I just love the most balance as possible at all times, personally. It causes less manual intervention. I think one of the main advantages of M1 has been that each security can feed the overall system by not exclusively reinvesting in itself.
@@JeffTeeplesYes Sir. That’s what I thought. Although I’d like to keep reinvesting into SCHD when the share prices are down, I don’t want to get the re-balancing out of wack. So I think I’ll have all dividends from each ETF feed the others evenly.
Hey Jeff, I have a equal split of VOO, VGT, SCHD in my taxable account and then the same thing in my roth ira. Should I be putting as much as possible of SCHD in the roth to avoid the taxes on the dividends? So everything would still be a 33% split overall but the majority of SCHD would be in the roth. Hope that makes sense. Thanks
I think an even mix is a solid way to go. I'm actually the opposite, believe it or not, because the qualified dividend advantage gets negated in a Roth or traditional IRA. In a taxable account, the qualified dividends do NOT add to your ordinary income. They can't push you to a higher tax bracket, and you pay lower taxes on them (treated as long-term capital gains). I like to keep my biggest growers (VGT, QQQM) in the Roth. But there are pros and cons. If you're on the fence, you can use an even mix everywhere. Or you can do it either way, really.
I couldn't help myself after the SCHD dividend payment. I saw $0.8241 and I knew I couldn't wait. I wasn't quite in time for Sunday (was already working on video that week when the SCHD news dropped).
I like your modern three fund portfolio with SCHD - I have a similar one. But I think it will lag the market this year and beyond until the growth stocks come down. VOO and QQQM have 46% overlap now 😮 That's crazy, the 'market' itself has kind of become a proxy for growth now. Maybe this will become a new norm or the market will revert to its historic mix, only time will tell... Btw, your goatie is back, and it looks great 🙂 Happy 4th of July 🎇🎆
Haha, thanks for to comment on the goatee. It's funny because I never had facial hair for the first 37 years of my life. Almost literally not exaggerated. I started in 2020 when everyone was locked inside. Now I experiment here and there. VOO has gotten growth heavy as of late. And specifically tech heavy. What I love about VOO long-term is that it will 'automatically' rotate to the next thing. It reflects what the market is doing. I do think 'my mix' will have its first loss in a decade this year. VOO has been so strong. QQQM + VGT will not be able to drag SCHD over the finish line. But time will tell! The mix was losing through November last year! (I'm a nerd that checks monthly). I still love the mix and I think it will perform well in the long run.
That's a monster dividend! As we are nearing retirement we are add more of $SCHD to our bridge account for security as our "growth" option as the bottom was only a -4.14 at it lowest in our bridge. We are really thinking of pairing it with $FDVV at a 50% / 50% split... for a 7 year horizon in the bridge - 5 Years cash equivalent & 2.5 Years worth in $SCHD/FDVV split. That way we can preserve the cash to live off of the first 5 years (bucket 1) and the next 2.5 years we can let it grow a bit with those 2 EFTs and gain from the dividend drops even if the market doesn't perform well. What we like most about the $SCHD/$FDVV split is when one side of the market is down, the other end is up and it moves the bottom to a -3.13 potential loss which with dividends is completely negated in the worst of markets. The overlap on the 2 ETFs is only 15% weighted as well.
I love the split. FDVV has been very solid, slightly outperforming SCHD overall over the past 5 years. And more than slightly crushing it during shorter durations. Doesn't hurt to mix it in. I should probably add it to my 'dividend ETFs' when I make my quarterly videos to compare everything. Maybe I will. The thing that has held me back is the lack of dividend growth over the years. I'm a huge stickler for that. I also hold a lot of VOO and QQQM, and FDVV has a 35% and 29% overlap with these respectively (which explains the outperformance of SCHD lately). For me, SCHD is more of a stabilizing floor to help out VGT, QQQM, and VOO with different holding types. For your situation, I think FDVV is a fantastic option to mix with SCHD.
@@JeffTeeples Completely agree. For someone in retirement or nearing it, it’s a solid option to potentially gains on years 5-7 (bucket 2) instead of bonds. For bucket 3, 8 years + we are all in with S&P and growth mix. While we don’t like the lack of dividend growth, we love the larger tech growth upside and low floor and it’s a respectful 3% dividend. So mixing SCHD and FDVV you can get a solid dividend and low floor with some added potential. The backtests on the 50/50 mix is attractive.
Hey Ian. For sure. Here is a list of some of the books I've read recently. I need to take the time to organize this into tiers and lists eventually. I just started this a week or so ago. Favorite Books amazon.com/shop/jeffteeples Thanks!
Thanks for watching and commenting. Also, thanks for being a channel member! I appreciate the extra support. I saw the dividend announcement and thought 'I better wait for a couple additional sources to confirm this before I say anything'. lol. It was a nice all-time high. I believed it because of the reconstitution this year. But it still caught me a little off guard.
I also own 6 figures worth of SCHD but I'm adding DGRO with any new money to a dividend ETF. SCHD's lack of tech stocks will limit its price growth going forward.
I love the combo of DGRO and SCHD for people that don't have VGT, SCHG, QQQM, or a tech heavy holding like that. I think DGRO is a great hybrid to capture a bit of tech (unlike SCHD).
I'm not a fan of long-term bonds, personally. That doesn't mean they are bad, and a lot of really smart people like the balance of having bonds mixed in. As a zoomed out, long-term investor, I like having about 10% of my portfolio in a money market (which includes short term treasuries). These will perform poorly compared to long-term bonds when the federal funds rate is cut. But equities perform well, generally speaking, at that time. There is no 'one size fits all' in investing. I will likely never hold TLT, but that doesn't mean it is bad. It will outperform low-cost ETFs at certain points in time. No doubt. I don't have any interest in 'timing those times', though. There is over 100 years of data showing that it doesn't pay, long-term, if an investor isn't overly concerned about the portfolios floor (people that are dollar cost averaging in early or mid career).
Hi Jeff ! I just started in investment because your video! And of course I invested in SCHD on lately June. My first Dividend-date will be on September right? Thank a lot (:
Very nice Pichet! Welcome to the world of investing. Always play the long game with this stuff. Our portfolios could fall by 30% in a month, and that is okay! It is actually good to be a buyer during that time. If you DCA (dollar cost average) the same amount of money every week or month for many years you'll be a long-term winner. The secret is to not sell. You nailed it. SCHD 'usually' pays dividends in: March June September December This one happened to fall on 7/1/2024 because of the way the days of the week fell within the month (the 'last Monday' fell as early as possible, so they pushed it to the first Monday of July). Usually pay day is 'the last Monday' of the month.
Is SCHD worth it if I’m in my mid 40’s and just barely buying SCHD in my Roth IRA? I’m currently putting in about $225 a month towards SCHD. But considering changing and sticking with VOO and QQQM.
Thanks for watching and for the question. I'm in my early 40's, and while we are all different, I think every ETF you mentioned in worth it. In fact, I personally roll with 33% of SCHD / 33% of VOO / 34% of VGT + QQQM. I think keeping them in balance is great because it will allow you to get the biggest bang for your buck over the years. For example, VGT has been going crazy the past couple years. SCHD has been flat. I've been loading up on SCHD to keep it at its 33%. This means I'm naturally buying lower. The same logic will apply to buying VGT when value starts to triumph over growth next. Nobody knows when that will happen, but I'll be ready. Staying the course and buying to the target allocations is the best way I know.
@@JeffTeeples Thanks! I’ll probably just stick to SCHD, VOO and QQQM. Possibly even it out all around like how you have it. I guess I’ll just wait 30 years when I’m in my 70’s lol 😂. Wish I would have invested sooner. But that’s why I’m contributing to my 401k and maxing out my Roth IRA to catch up on retirement.
@@JeffTeeplesdoing a comparison and it looks like VGT paired with VOO and SCHD has less overlapping instead of QQQM, SCHD and VOO. Hmmm might switch out QQQM with VGT.
I think QQQM and VGT are both great. VGT is honestly my favorite ETF (I'm a major tech bull). I decided to add QQQM to get 'a little' less tech on my growth side. VOO is already heavy in tech, so I wanted to sector down just a bit. Long-term, I think VGT, QQQM, or a combo are all great.
Absolutely. The back test I showed did just that. That was total returns, including dividends received and reinvested for both SCHD and VOO. The S&P 500 dividends are quietly underrated over time. All dividends add up.
we need all the herd to bail from schd and then it will start to outperform again when the masses performance chase other stuff. SCHD June Qtrly dividend growth of 24% YOY is incredible vs inflation of 3.4%. This is a rental property that requires no babysitting
This is not as good as JEPQ; they paid an .82 cent quarterly dividend where JEPQ paid a .42 cent dividend monthly ; which is 50% better; in addition JEPQ is up 18% over 6 months where SCHD is an anemic 3.18%
I like JEPQ a lot for a 'cash-now' ETF. It has had incredible performance lately. Definitely has crushed SCHD lately (of course, with growth/tech holding an a PE of 32 with this growth boom). The only thing I don't like is that it underperforms QQQM and VGT. I prefer those holdings for 'growth', and SCHD or DGRO for dividend payers & *growers*. For example, JEPQ has a dividend growth of -13% in the past year. Again, I'm not talking smack about it, but the dividend yield will be mostly 'random' based on the markets volatility, and not ever growing like SCHD. I have some videos that show the crazy difference of 0% dividend CAGR vs 10% dividend CAGR over time. It is borderline unbelievable (SCHD will pay MULTIPLES higher than JEPQ over time of holding / reinvesting). I like, and hold, both. But it is apples to oranges.
I'm not a fan of FEPI (looked into that one earlier this year and briefly just now). It has a high expense ratio of 0.65%. That will be a return killer over the long run. I'm not sure how much you have looked into the holdings and methodology, but the floor will be very unstable. The upside can be nice, but it doesn't make a lot of sense 'for that' compared to SCHG, QQQM, VGT, etc. Just my two cents.
1340 shares of schd holding for next 25 years (2049) with re-investment anybody knows where I will land with a realistic annual dividend income by then on Average
Oh man, SCHD is going to pay some wild dividends by then. I can't wait to see what happens over the next 25 years. I'm in your camp on buying and holding SCHD for part of my portfolio. Thanks for watching and for dropping a comment.
If you have 30 years I would put more in broad market and some growth. If you have time you want growth. You can shift more to SCHD as you near retirement to hopefully provide more stability. That said I probably would not go 100% even in retirement.
When you look at the dividend growth and how much money would be generated annually from having bought in over 30 years it would seem quite reasonable that a 100% SCHD would be far more beneficial than a large amount in a index fund with very little yield. It's not about your net worth in 30 years, it's about how much money is generated on a monthly/annual basis.
Thank you for watching and for the question. I see merit in Phil's answer below. Broad market funds have proven to produce quality total returns over many decades. VOO, for example, will take advantage of the growth dominance (like the last 10 years), and the value dominance (prior 100 years overall). It is (usually) roughly an even mix of growth and value. You get a slice of most of the passively managed ETFs that we love. And it takings the timing guess work out of it. However, I also like to get a little more specific than a broad index even with many years to go. I think a fine balance is a nice way to go. In my early 40's, I go with 33% SCHD / 33% VOO / 17% QQQM / 17% VGT. I added the QQQM recently and I'm not quite up to the allocation. I love tech (VGT is 100% tech), but I felt a 'little' overweight in it with 33% VGT. QQQM is still half tech, but balanced me out a little bit. I'm not saying my way is the best by any stretch. What I'm advocating for is balance based around your preferences. You could go 100% VOO or 100% VTI and beat 90% of the 'experts' over many decades. You could also go 100% SCHD and grow stable wealth with growing dividends. I would likely slice somewhere in the middle. If I HAD to pick an extreme, I would go 100% VOO until you were at or nearing retirement, and then go 100% SCHD for cash flow. Again, this is having to pick all or nothing. Like Phil said, I would likely never go 100% of anything at any time realistically.
@JeffTeeples thanks for taking the time to respond. It would be cool to do a fun video on what future projections would look like if a person went 100% in (with regular contributions) into some of the most popular ETFs out there over the course of 30 years like VOO, SCHD, VYM, DGRO, etc. The longterm dividend play is interesting given the amount of projected annual income after 30 year as opposed to the growth of a VOO and then slowly transferring over to say SCHD over time. Either way, keep up the good work. Your content is very helpful.
No matter how it works out, just you wondering that shows you're ahead of most people. I have friends with so much extra money and won't even spend 5 minutes opening a roth ira and putting away even $50 IN ANYTHING because it's too "boring" 😢 Your plan will do great.
@@tvlookplay Are you splitting your SCHD position in half with DGRO? I have about $150K in my SCHD position (10% of portfolio) along with VOO, QQQM and VGT. I’m thinking about adding DGRO and making it 5% each instead of all 10% into SCHD.
I'm doing this. Not b'cuz I'm down on SCHD, but for diversity. Almost no cross-over. I got the big div & good price appreciation with the mix. Good luck, cheers
I think a 50/50 mix of SCHD and DGRO is an incredible way to go. DGRO is cool because we know it will VERY LIKELY *always* grow its dividend. The methodology screens companies based around that factor (along with not being a REIT & having positive earnings). I know SCHD has 'grown' its dividends better in the past 10 years by a little bit (better dividend CAGR) and has a higher yield. But I think DGRO is more 'sure fire' in ALWAYS growing the dividends. SCHD has a high probability as well, but is also build around more value, balance sheet health, and yield. I view SCHD as a portfolio stabilizer with high yield and dividend growth. DGRO gets more tech and growth (22% weighted overlap with QQQM) while also stabilizing dividend growth. I don't think we can go wrong with either one. The only reason I have 100% SCHD is because I need the 'bond-like' floor with being so heavy in VGT + QQQM + VOO.
SCHD's year over year growth for June 2023 dividend = 5% Investors say "Waaahhh!!!" SCHD's year over year growth for June 2024 dividend = 24% Investors say "I ritch!!!!" (.05 + .24)/2 = .145 = Two-year dividend CAGR of 14.5%, or just about average. Math says "Quit living in the moment, and let the me do my thing."
Amen. Love it! People get really into the current trends. It has always been this way. I want to try to help investors stay balanced and stick to their system during all times. Growth has exploded, so it is 'the best' according to all the UA-camrs and articles out there. Meanwhile I'm making videos about SCHD. When the market flips, I'll be the guy saying 'remember growth does well over long periods of time too' (: Investing, just like life, is all about balance.
The game is long, and as said in sports, something like: "Offence gets you to the play-offs, but defense wins championships."
I love this as a huge sports fan. I could not agree more. I love having a balanced team with VOO as my all around player, SCHD is my defensive rim protector, and VGT and QQQM are launching 3 pointers left and right to score points (:
When VGT and QQQM start throwing up bricks, SCHD is there to shut down the other teams fast break.
Go Bills
That sports quote is perfect!!!
Boooo! Just kidding, I like the Bills. I'm a PNW guy so I have to be a Seahawks fan by default (I go to a couple games each year).
My diehard, branded at 3 years old, team that I (sadly) watch every game of to this day is the Portland Trail Blazers. I know, I know, it has been ROUGH lately (: I was born in Portland and my dad loves the Blazers. He went to a couple of the home games in 1977 when we won our first (and maybe last lol) title.
My other team 'was' the Sonics. And I love the Mariners as well. My college football team, and this gets me in trouble in WA State, is the Oregon Ducks (waves for everyone to bring on the boos).
Like golf, "Drive for show, putt for dough"
Thanks!
@@user-briannahui27 bag alert and Bri alert! Thank you so much. Your generosity is always appreciated.
I love it! Part of my account is VGT complimented by SCHD. This has been a great one-two punch. When I first saw the dividend for this past quarter for SCHD, I thought it was a typo. Thanks for your great videos Jeff!!
Oh man, you and me both Robert. I saw it was just over 82 cents and just stared at it for a minute. It was awesome. I hope SCHD has a turn around in the coming months / year on its price return as well. I don't hold it to 'beat the market', but it has been a slow 2 years. I'm not going anywhere though. I love the underlying methodology of SCHD. It pairs so nicely with the growth ETFs.
Appreciate the homework on Schd!
Just bought 50 shares of Schd.
@@tompartyka352 Your future self will thank you 😊
Oh man, now it is going to collapse. I'm kidding! Very nice add. It is a great long-term hold that feels like a bond on steroids.
Fantastic info ! Being 4-5 years away from retirement, I will use SCHD as a buffer to minimize downturns, your presentation of what SCHD is and how it fits into a portfolio is a individual decision, and like you have said now and before, when the tide turns and it always will, having a substantial amount is SCHD will be advantageous, especially those nearing retirement, and also a good things when rate cuts will begin at some point - keep up with these great learning videos !
Thanks Carl. I appreciate you taking the time to watch the videos and providing positive feedback. Have a great 4th of July!
Just shared this with the caption “Jeff Teeples is my spirit animal. 😂 I don’t need to make a SCHD STAN UA-cam channel because he’s saying everything I would, just much smarter.” Another great video Jeff! 😎
And that's why I'm here lol. Thanks for the suggestion bro.
Haha, thanks man! I don't know about the smarter part, but I'll take it. Have a great 4th!
I have exactly $143,556 in SCHD. My dividend on July 1 was $1503. And ofcourse, it was reinvested.
Heck yeah, that is incredible. Love reinvesting those dividends!
@@JeffTeeplesBut, the SCHD dividend was re-invested into VOO, QQQM, VGT & SCHD at their current weights.
@@JeffTeeples I sold 1/2 my SCHD position and bought DGRO.
@@BW-kv9wj serious question- why what’s the perk or benefit to dgro?
Hey Kevin. I think that is a great question. DGRO is a nice hybrid fund. It has a high dividend yield *FOR* a *dividend growth* centric fund. It starts at 2.36%. I know this feels low, but it's 'like' competition, VIG, starts at 1.83%.
DGRO is screened to specifically grow its dividend. SCHD has ironically been better over the past 10 years, but DGRO is very, very consistent in all markets. SCHD 'almost' didn't grow last year. DGRO never came close to that.
DGRO dividend growth: 1Y = 8.01%, 3Y = 11.65%, 5Y = 10.26% and 10Y = 8.44%. Again, SCHD has been higher on dividend growth. I personally do not think that will continue (I think both will grow the dividends, but DGRO will rise more consistently).
DGRO has an incredible mix of growth / tech / dividend payers. It's top 10 holdings are:
Microsoft Corp
4.01%
JPMorgan Chase & Co
3.41%
Broadcom Inc
3.40%
Exxon Mobil Corp
3.11%
UnitedHealth Group Inc
2.67%
Visa Inc Class A
2.40%
Procter & Gamble Co
2.26%
Mastercard Inc Class A
2.16%
Costco Wholesale Corp
2.09%
This is a very nice mix that has outperformed SCHD by a lot recently (including dividends reinvested, talking total returns here).
Here are the total return comparisons for the past 3 years and less
DGRO: YTD 8.46%, 1Y 15.11%, 3Y 22.31%
SCHD: YTD 3.04%, 1Y 9.94%, 3Y 13.71%
I think DGRO gets a nice mix between dividend yield, dividend growth, and price appreciation (holding tech companies that SCHD misses).
This is actually why I like SCHD better. I hold VGT / VOO / QQQM, so I want less overlap with my value/dividend holding. DGRO has a lot of overlap with the growth funds.
But, on the flip side, DGRO does a lot of things well. It is a jack of all trades fund. And even better, it holds 416 companies in nice balance. All of them have grown their dividends for multiple years in a row.
Great video, Jeff! Your last video (no bonds) and this one is, in my mind, reinforcing my decision to go 50% VOO, 25% SCHG, and 25% SCHD. My plan is to rebalance 5% per year in favor of SCHD from SCHG as I get closer to my retirement window. Lets grow!
That is an awesome balance Nick. I love the plan to transition more to SCHD when you need the cash in retirement.
I am naturally going to get my S&P 500 higher as well because we are still maxing my wife's 401k as our only 'default like a bill investing'. My money used to even everything out. I'm hoping this channel slowly grows so I can help even it out a bit more. But, if one thing is going to get overweight right now, the S&P 500 is my pick. So it's not the end of the world (:
@@JeffTeeples SCHG is rolling as of late and it’s helping carry my SCHD holding. I’ll take what the S&P gives, as well. As I’ve learned through my own investing journey and the advice of friends, FOMO is real. I’m happy with this mix and have learned to stay the course!
I’m up to 590 shares of SCHD now. Love it paired with my growth positions. Seems like I’m always trying to figure out how I can invest more money. The recent dividend payment bought me 6 shares of SCHD. The 3rd quarter dividend should buy me at least that many shares again.
Very nice. I love the feeling of reinvesting dividends! It is so nice to accumulate more shares over time. I can't wait for the 3rd quarter dividend for SCHD.
Only have 5% in SCHD with 7 years until retirement. Slowing moving to get it to 1/3 of my portfolio for retirement. I am heavy growth right now at 65%. I would be 90% growth if I had the option. Limited in some of my funds to a Core.
I think that is a nice strategy Daman. Everyone has different risk tolerances and goals, but I think it makes sense 'in general' to have more growth when accumulating wealth and more dividend + dividend growth in retirement. I personally go with an even mix during accumulation, but most people roll with growth when the downs won't hurt as bad long-term (still DCA in during working years, so ultimately accumulating more wealth on the dip).
I hlam long SCHD. I have 5 in my taxable account and 15 in my roth. What is your growth position? I also have swppx in both and swlgx. In the taxable account I ko and pfd and f 👍🏾.
I think you may be asking Daman, but I'll answer just in case this is to me. I like QQQM + VGT for growth and VOO for a cornerstone.
@@easyrawlins2392 I basically have all the big tech stocks and I’m converting them into QQQM and VGT
Already have 1000 shares of SCHD along with VOO
Dang, nice! Also, love the combo. Eventually VGT and QQQM will drop, and SCHD will keep the ship steady. When the masses start saying SCHD is the best and VGT and QQQM are terrible... That is when we will load up on more QQQM and VGT (:
I am doing DCA every day in All of them regardless of up and down.
Did you know that putting your $82,000 into a 5% p.a high interest bank account would bring you in more money per year than what you received in dividends
@@user-neo8888 Thanks for watching and commenting. In the first year, sure. Cash-flow over time? Not even ball park close, SCHD wins. Compound truly is the 8th wonder of the world (dividend growth in this case).
Thanks for the extra Thursday treat. More please!!!
I appreciate it! Thank you for the consistent support and for the *EXTRA* support of being a member. I want to make more Thursday videos in the future. It is difficult right now with my life-flow (kids are 2 and almost 4). When they go to school full time I hope to consistently get 2 videos out there per week. Possibly other stuff too. It will be a slow build in the meantime. One thing for sure, I'm not going anywhere (: I'll be here for many years to come. I quit my job to help as many people as possible reach financial freedom & to spend more time with my kids.
I love how interactive you are with your viewers.. it could be hard to keep up with as your channel continues to grow, but that’s a good problem to have.. have a good day..
I appreciate that feedback. My goal is to help as many people as possible with this stuff. I try to get back to every comment. It is time consuming, but it is worth it.
When the channel grows (hopefully), I should naturally have more time to put into it with where I'm at in life at that time. Right now is a tough 'free time' state with a couple kids under 4 y/o.
My portfolio is currently 60% QQQM and 40% SCHD. It's tempting to go all in on QQQ, but like you said it is important to have a balanced portfolio with etfs that compliment each other.
I think that is a great mix. Your patience will very likely pay off, long-term. QQQM may very well make more money in the next 20 years. But we will never know that for certain. Your well balanced approach will set you up nicely for more scenarios. There is something to be said for having a stable floor and sleeping well at night.
Plus, SCHD 'may' crush QQQM in the next 10 years. I wish I had a crystal ball (:
SCHD will NOT “crush QQQM in the next 10 years”!
Time will tell. Value has been better in many long stretches in the past. That is the point. I think QQQM and VGT will 'usually' outperform SCHD and VOO in 'most' markets. But when they fall...
I think one most aren’t considering is that Schd is the perfect etf to have and hold to avoid having your retirement sitting in bonds. Bonds are safe but give you squat. Yeah Schd is not flashy like qqq or Voo but it doesn’t have the volatility either.
I completely agree with this Kevin. I know people are down on SCHD right now because the other ETFs are smoking it on total returns. But I think when we zoom out 10 to 20 more years, people will commonly consider it the perfect 'floor protector + dividend grower'. Right now, traditionalist still get furious when stuff like this is mentioned. It is early in the journey. I think it will be fun to see the sentiment change long-term.
Holy TEEPS Thursday Batman…!!!A TEEPS video drop mid week..?? How wonderful. Keep on spoiling us. Great SCHD video lesson Jeff. Not a rocket ship but a steady Eddie that keeps plugging away dropping dividends to you. Thank you so much for the video. Happy Independence Day to you and the family. Happy Birthday - soon - and lastly have a wonderful weekend together.
Thanks Lance! Enjoy the 4th with your (same birthday!) wife (: Now I need to think about how I'm going to get next Sunday's video done with my wife having a few days off and wanting to hang with her & the kids. Night owl time!
I put good amount on some promising ETF's this morning, QQQ, SCHD and TQQQ.
Very nice! TQQQ is too crazy for my blood, haha. BUT it has done incredibly well. I'm certainly not saying it is a bad investment. SCHD is there to help smooth the ride for you. Love the overall balanced strategy.
My biggest holding SCHD. I don’t know if this is a good thing or bad thing. It hasn’t done much lately. I’m retired and that’s why I own it.
ya the share appreciation has been slow going past couple years, but the dividend growth is still huge factor that cannot be ignored.
If your retired it should definitely be your largest holding. Hopefully you have enough where the dividends are supporting your retirement
Happy to have 8800 shares - my largest holding.....retired at 60 and SCHD helped me do that!🎉
Daaaaaang Kelly, that is incredible. You have just over double my shares. Every time I get a dividend now I'll think 'Kelly just got double this!' lol
I think having a large position in SCHD is a great move in retirement. You are right int hat it has been a pretty lame couple years on the price growth front. But the solid yield and dividend CAGR keep it producing in these times. When the growth/tech run cools off, you'll be a happy camper. SCHD will protect the portfolio value that other holdings have built over the past couple years.
Thanks for the video Jeff. Bag alert for SCHD div for q2 = $4,263.88. Thanks.
Thanks for watching and for dropping a comment. Major bag alert! Great job holding SCHD as the investing world told us to go 100% growth (: These swings will always happen, and it is great to have a balanced portfolio.
Hi Jeff, every time after watching your video, I also enjoy reading comments from the other investors and your responses, some echos my own situations and found helpful. Thanks again for the great video!
Hi Cindy! Thank you for watching and dropping a comment. I appreciate the support you have given the channel. I try to do my best to answer the questions in detail. I'm here for this journey with the community.
keep pumping out those financial informational videos Jeff!!!! Happy 4th!!!!
Happy 4th Kevin! Have a great time today. I'll keep these things coming.
Just hit 414.40 shares, and still buying. Edit: I just hit 510.4
I love the accumulation process. Your shares only go up as your buy regardless of the current price.
This is how I brace myself for VGT volatility. My portfolio was down 6 figures in 2022, and as much as it hurt, I couldn't help to notice my 'all-time high' share count for everything (:
These low-cost, passively managed ETFs always 'eventually' hit all time highs. I like our odds with our shares never going down, and new all-time highs being inevitable in the future.
sell put also is a great method for gain more shares!
@@lostboi3974 I’m almost to 70. Gotta start somewhere
I think we all, as investers, focus on what is doing well in the moment. It is hard to focus on what a long term goal is when we think account growth in the now is the right path. Maintaining our portfolio balance will ensure we buy on the dip. If growth was to spend two years dropping while value was increasing, we would all be reminiscing the days of SCHD being under $80/share. Thanks for helping us to stay the course by reminding us why we want Value/Dividend & Growth together.
Spot on Roy. Couldn't have said it better myself. It is tempting to jump on the new trends that everyone is raving about. Especially when the charts are blowing up and 'the few' (that were in all along) are getting crazy rich. If it was that easy everyone would be rich.
We hear about the 1 person that made it big but we mysteriously don't hear about the other 99 that lost money doing it or something similar. It is dangerous, and a major reason I started this channel.
Of course I do think it is important to stay open-minded in investing. There may be some ETFs or new strategies that end up being amazing for the portfolio. I like to see more data before I dive in, but I'm sure things will change over the long haul and I don't want to be the guy saying 'because this is the way I've always done it'! It is a fine balance.
Could you remind me which video you showed a comparison between SCHD dividends and interests in a high yield savings account? Thanks.
Thanks for watching and for the question. The answer is a few of them, haha. But this one shows that SCHD is better than a 5% interest savings account (that hasn't existed) over the past decade.
ua-cam.com/video/zvsiEqyv75Q/v-deo.htmlsi=Z48XABpeAunYvstn
I upper cut my iPad to smash the like button, now I need to buy a new ipad😂
But you have to admit; It was worth it! (:
Hi Jeff, I really enjoy your channel. What effect if any, do you see Fed interest cuts having on SCHD?
Hey Chris. Thank you for the positive feedback about the channel. I appreciate it.
I don't think the rate cuts (or increases) have a 'long-term' impact on SCHD looking to the next 20 years and beyond. I do think that cuts will help it in the short term though. The drop of money markets and HYSA make SCHD a comparatively more attractive place to stash 'cash' (well, cash-flow really) for the long-run.
People like me will be there all along with target allocations (growth vs value, the underperformer gets my new dollars in all markets). But a lot of people like to jump around, and I think SCHD will see more inflows as rates drop.
Thanks for the good advice on a Thursday and holiday! Happy 4th! 💥
Happy 4th Anthony. Have fun today! I appreciate you watching the videos and dropping comments. The support helps the channel a lot.
On an unrelated topic, whose autograph is on that basketball behind you? I can’t quite make it out even after zooming in.. just curious.. thanks!
That is ball autographed by Clyde the Glide Drexler. He was my favorite player growing up, and is easily my favorite of all-time still. And oh wow did I just age myself (:
@@JeffTeeples it’s ok. I’m a couple years older than you. I liked watching Clyde. I was always a Celtics guy with Bird, McHale, Parrish, Ainge…
Thanks for your response
@Bur6212 Your squad was awesome back then (and this year too). I hope to win a title in my lifetime, but not holding my breath (:
Thanks Jeff - I am late to the SCHD party, but, thanks to your channel, I am holding. This video actually helps explains my abysmal performance over the past five years. I was too light on growth, and too heavy on value, and, even worse, too heavy on bonds - ouch! And, I am definitely hearing you when now I am too anxious to load up on growth just as growth becomes unsustainable. I am example A1 of - sometimes simple is better.
Hey Kent. Thanks for watching and for leaving a comment. I found myself on one extreme of the equation when I used to go with my gut. It may take a little time to get your target allocations as you slowly move assets or put your new dollars to the underweight areas. The beauty is that once you are there the target allocation investing will allow you to go on auto-pilot. Simply buy the underweight holding when new money goes in (or dividends get reinvested). It took me a while to find my favorite target allocations. There is definitely no one size fits all.
Only problem is the share price has been stagnant for a while.
The share price has been stagnant for a couple years now. This has created an opportunity to add more shares at a reasonable price. All investments will look bad at times over a year or two. The secret is to buy the 'bad ones' as the others are high. Same goes for the other side. When value has a comeback and growth is crashing, it will be time to buy growth when everyone says it is bad.
Target allocations will out 'math' any genius. It is impossible to not 'time the market' (relative terms) correctly if it is systemized.
Happy Holiday Jeff.
Happy 4th of July to one of the earliest channel supporters. Have fun!
I got a lil over $300 from SCHD last week. Love it! I just keep reinvesting though. Considering DGRO but the yield is a bit low so I’m not sure if it’s worth it.
Very nice on the $300 of qualified dividends! I think DGRO is another solid option. I see a bright long-term future for both. Thanks for watching and for dropping a comment.
Schd is the best way to never sell and live off dividends😂😂dont tell the IRS😮😮
@@francosantoro1986 I love SCHD long-term. It is like a cheat code for increasing cash-flow while maintaining a stable portfolio value.
Jeff, Thank you for the 4th of July video. I am watching twice each and every video you make 🙏. My question today is, you mention a lot that you load a lot of SCHD now because growth is going crazy and value not, and eventually value will go up and growth won't. Does it have to be one or the other? If growth doing well then value not and vise versa?
Hey Idan. Thanks for watching and for dropping a comment. I just got back from a 4th party (always have to leave early when I'm the one with toddlers lol).
Growth and value are not always night and day different. There are many markets when they will go back and forth. At that time, I will be buying them equally to keep them at the target allocation. This has been quite the growth market, which is why I have been swooping up SCHD.
The nice thing is that I never have to think 'hmm... what should I buy? What market am I in?'. This is because the portfolio will tell me. I assess the current allocation (by %), and buy the one that is underweight.
It can mean buying a few shares of SCHD and VGT if they are 'about the same' in my portfolio.
It has been very black and white lately, but normally it is a bit more gray.
Thanks jeff happy 4th
Happy 4th to you as well Steven. I appreciate you taking the time to watch the videos & dropping comments.
Really enjoy your videos
Hey Jeff. I just noticed on M1 that you can choose to have dividends reinvested back into the underlying security that paid the dividend. If you don’t choose that option, any dividend that is paid gets evenly distributed into each ETF in the pie. Which option do you choose? I would like that option but if dividends are paid back into the security that paid it, would it cause the percentages to go out of wack causing automatic rebalancing issues???
I like the 'old way' of rebalancing in real-time. This will make it to where we don't have to rebalance our portfolio as often.
Reinvesting in the security can get the holding out of whack. For example, if VGT paid a dividend it would be more VGT (even though SCHD is underweight).
Some people like to let their winners run like that. There is no 'right' way to do it. I just love the most balance as possible at all times, personally. It causes less manual intervention. I think one of the main advantages of M1 has been that each security can feed the overall system by not exclusively reinvesting in itself.
@@JeffTeeplesYes Sir. That’s what I thought. Although I’d like to keep reinvesting into SCHD when the share prices are down, I don’t want to get the re-balancing out of wack. So I think I’ll have all dividends from each ETF feed the others evenly.
Hey Jeff, I have a equal split of VOO, VGT, SCHD in my taxable account and then the same thing in my roth ira. Should I be putting as much as possible of SCHD in the roth to avoid the taxes on the dividends? So everything would still be a 33% split overall but the majority of SCHD would be in the roth. Hope that makes sense. Thanks
I think an even mix is a solid way to go. I'm actually the opposite, believe it or not, because the qualified dividend advantage gets negated in a Roth or traditional IRA. In a taxable account, the qualified dividends do NOT add to your ordinary income. They can't push you to a higher tax bracket, and you pay lower taxes on them (treated as long-term capital gains).
I like to keep my biggest growers (VGT, QQQM) in the Roth. But there are pros and cons. If you're on the fence, you can use an even mix everywhere. Or you can do it either way, really.
Whoa teeples on a Thursday!
I couldn't help myself after the SCHD dividend payment. I saw $0.8241 and I knew I couldn't wait. I wasn't quite in time for Sunday (was already working on video that week when the SCHD news dropped).
@@JeffTeeples Big news for sure! =)
I like your modern three fund portfolio with SCHD - I have a similar one. But I think it will lag the market this year and beyond until the growth stocks come down. VOO and QQQM have 46% overlap now 😮 That's crazy, the 'market' itself has kind of become a proxy for growth now. Maybe this will become a new norm or the market will revert to its historic mix, only time will tell...
Btw, your goatie is back, and it looks great 🙂
Happy 4th of July 🎇🎆
Haha, thanks for to comment on the goatee. It's funny because I never had facial hair for the first 37 years of my life. Almost literally not exaggerated. I started in 2020 when everyone was locked inside. Now I experiment here and there.
VOO has gotten growth heavy as of late. And specifically tech heavy. What I love about VOO long-term is that it will 'automatically' rotate to the next thing. It reflects what the market is doing.
I do think 'my mix' will have its first loss in a decade this year. VOO has been so strong. QQQM + VGT will not be able to drag SCHD over the finish line. But time will tell! The mix was losing through November last year! (I'm a nerd that checks monthly).
I still love the mix and I think it will perform well in the long run.
That's a monster dividend! As we are nearing retirement we are add more of $SCHD to our bridge account for security as our "growth" option as the bottom was only a -4.14 at it lowest in our bridge. We are really thinking of pairing it with $FDVV at a 50% / 50% split... for a 7 year horizon in the bridge - 5 Years cash equivalent & 2.5 Years worth in $SCHD/FDVV split. That way we can preserve the cash to live off of the first 5 years (bucket 1) and the next 2.5 years we can let it grow a bit with those 2 EFTs and gain from the dividend drops even if the market doesn't perform well. What we like most about the $SCHD/$FDVV split is when one side of the market is down, the other end is up and it moves the bottom to a -3.13 potential loss which with dividends is completely negated in the worst of markets. The overlap on the 2 ETFs is only 15% weighted as well.
I love the split. FDVV has been very solid, slightly outperforming SCHD overall over the past 5 years. And more than slightly crushing it during shorter durations. Doesn't hurt to mix it in.
I should probably add it to my 'dividend ETFs' when I make my quarterly videos to compare everything. Maybe I will. The thing that has held me back is the lack of dividend growth over the years. I'm a huge stickler for that. I also hold a lot of VOO and QQQM, and FDVV has a 35% and 29% overlap with these respectively (which explains the outperformance of SCHD lately).
For me, SCHD is more of a stabilizing floor to help out VGT, QQQM, and VOO with different holding types. For your situation, I think FDVV is a fantastic option to mix with SCHD.
@@JeffTeeples Completely agree. For someone in retirement or nearing it, it’s a solid option to potentially gains on years 5-7 (bucket 2) instead of bonds. For bucket 3, 8 years + we are all in with S&P and growth mix. While we don’t like the lack of dividend growth, we love the larger tech growth upside and low floor and it’s a respectful 3% dividend. So mixing SCHD and FDVV you can get a solid dividend and low floor with some added potential. The backtests on the 50/50 mix is attractive.
Hi Jeff, can you share the books you read please
Hey Ian. For sure. Here is a list of some of the books I've read recently. I need to take the time to organize this into tiers and lists eventually. I just started this a week or so ago.
Favorite Books
amazon.com/shop/jeffteeples
Thanks!
Oh yes, I was shocked to see just how much dividends SCHD paid me in my portfolio this week! ❤️
Thanks for watching and commenting. Also, thanks for being a channel member! I appreciate the extra support.
I saw the dividend announcement and thought 'I better wait for a couple additional sources to confirm this before I say anything'. lol.
It was a nice all-time high. I believed it because of the reconstitution this year. But it still caught me a little off guard.
Happy 4th of July!!
Happy 4th to you too! Thank you for all your support to the channel.
I also own 6 figures worth of SCHD but I'm adding DGRO with any new money to a dividend ETF. SCHD's lack of tech stocks will limit its price growth going forward.
I love the combo of DGRO and SCHD for people that don't have VGT, SCHG, QQQM, or a tech heavy holding like that. I think DGRO is a great hybrid to capture a bit of tech (unlike SCHD).
Hello jeff!! Humbert again 😊.... what do tou think of TLT in this moment? Possible interest cuts, possible correction of the market...
I'm not a fan of long-term bonds, personally. That doesn't mean they are bad, and a lot of really smart people like the balance of having bonds mixed in.
As a zoomed out, long-term investor, I like having about 10% of my portfolio in a money market (which includes short term treasuries). These will perform poorly compared to long-term bonds when the federal funds rate is cut. But equities perform well, generally speaking, at that time.
There is no 'one size fits all' in investing. I will likely never hold TLT, but that doesn't mean it is bad. It will outperform low-cost ETFs at certain points in time. No doubt. I don't have any interest in 'timing those times', though. There is over 100 years of data showing that it doesn't pay, long-term, if an investor isn't overly concerned about the portfolios floor (people that are dollar cost averaging in early or mid career).
Hi Jeff ! I just started in investment because your video! And of course I invested in SCHD on lately June.
My first Dividend-date will be on September right?
Thank a lot (:
Very nice Pichet! Welcome to the world of investing. Always play the long game with this stuff. Our portfolios could fall by 30% in a month, and that is okay! It is actually good to be a buyer during that time. If you DCA (dollar cost average) the same amount of money every week or month for many years you'll be a long-term winner. The secret is to not sell.
You nailed it. SCHD 'usually' pays dividends in:
March
June
September
December
This one happened to fall on 7/1/2024 because of the way the days of the week fell within the month (the 'last Monday' fell as early as possible, so they pushed it to the first Monday of July). Usually pay day is 'the last Monday' of the month.
@@JeffTeeples Wow… I love the way you care about detail in answering subscribers question :D
Thank you for your kindness.
New all-time high today!
SCHD is going HAM. Love to see it. Although VGT didn't feel good today (:
I guess that is why I like to balance both (:
Is SCHD worth it if I’m in my mid 40’s and just barely buying SCHD in my Roth IRA? I’m currently putting in about $225 a month towards SCHD. But considering changing and sticking with VOO and QQQM.
Thanks for watching and for the question. I'm in my early 40's, and while we are all different, I think every ETF you mentioned in worth it. In fact, I personally roll with 33% of SCHD / 33% of VOO / 34% of VGT + QQQM. I think keeping them in balance is great because it will allow you to get the biggest bang for your buck over the years.
For example, VGT has been going crazy the past couple years. SCHD has been flat. I've been loading up on SCHD to keep it at its 33%. This means I'm naturally buying lower. The same logic will apply to buying VGT when value starts to triumph over growth next. Nobody knows when that will happen, but I'll be ready. Staying the course and buying to the target allocations is the best way I know.
@@JeffTeeples Thanks! I’ll probably just stick to SCHD, VOO and QQQM. Possibly even it out all around like how you have it. I guess I’ll just wait 30 years when I’m in my 70’s lol 😂. Wish I would have invested sooner. But that’s why I’m contributing to my 401k and maxing out my Roth IRA to catch up on retirement.
@@JeffTeeplesdoing a comparison and it looks like VGT paired with VOO and SCHD has less overlapping instead of QQQM, SCHD and VOO. Hmmm might switch out QQQM with VGT.
I think QQQM and VGT are both great. VGT is honestly my favorite ETF (I'm a major tech bull). I decided to add QQQM to get 'a little' less tech on my growth side. VOO is already heavy in tech, so I wanted to sector down just a bit.
Long-term, I think VGT, QQQM, or a combo are all great.
@@armygreenfj3924agreed
Giving a like for the Schd bag of Benjamin’s
Haha, I appreciate it! I knew the bag would be worth it! (:
These thumbnails hahah
Haha! This one will be hard to top. Even I have to get a little goofy with this stuff. I can't be tooooooo boring (:
Let the talking heads keep talking bad about it so i can get a lot more shares before they start piling back into it 😂
Amen. Haha, my thoughts exactly. Thanks for watching and for dropping a comment (:
would be good to add S&P500 ETF just to compare how small dividends reinvested back into S&P500 also grow quite well.
Absolutely. The back test I showed did just that. That was total returns, including dividends received and reinvested for both SCHD and VOO. The S&P 500 dividends are quietly underrated over time. All dividends add up.
How much did you invest?
I had 4,316 shares of SCHD before the ex-dividend date. It paid about $3,557 this quarter. Crazy!
we need all the herd to bail from schd and then it will start to outperform again when the masses performance chase other stuff. SCHD June Qtrly dividend growth of 24% YOY is incredible vs inflation of 3.4%. This is a rental property that requires no babysitting
Amen! Thank you for watching and for dropping a comment. I agree 100%.
This is not as good as JEPQ; they paid an .82 cent quarterly dividend where JEPQ paid a .42 cent dividend monthly ; which is 50% better; in addition JEPQ is up 18% over 6 months where SCHD is an anemic 3.18%
I like JEPQ a lot for a 'cash-now' ETF. It has had incredible performance lately. Definitely has crushed SCHD lately (of course, with growth/tech holding an a PE of 32 with this growth boom).
The only thing I don't like is that it underperforms QQQM and VGT. I prefer those holdings for 'growth', and SCHD or DGRO for dividend payers & *growers*.
For example, JEPQ has a dividend growth of -13% in the past year. Again, I'm not talking smack about it, but the dividend yield will be mostly 'random' based on the markets volatility, and not ever growing like SCHD.
I have some videos that show the crazy difference of 0% dividend CAGR vs 10% dividend CAGR over time. It is borderline unbelievable (SCHD will pay MULTIPLES higher than JEPQ over time of holding / reinvesting).
I like, and hold, both. But it is apples to oranges.
Fepi pays an average of $1.16 monthly.
I'm not a fan of FEPI (looked into that one earlier this year and briefly just now). It has a high expense ratio of 0.65%. That will be a return killer over the long run. I'm not sure how much you have looked into the holdings and methodology, but the floor will be very unstable.
The upside can be nice, but it doesn't make a lot of sense 'for that' compared to SCHG, QQQM, VGT, etc. Just my two cents.
1340 shares of schd holding for next 25 years (2049) with re-investment anybody knows where I will land with a realistic annual dividend income by then on Average
Oh man, SCHD is going to pay some wild dividends by then. I can't wait to see what happens over the next 25 years. I'm in your camp on buying and holding SCHD for part of my portfolio. Thanks for watching and for dropping a comment.
If a person had a 30 year time horizon for retirement, I would be interested in your thoughts on a 100% SCHD portfolio.
If you have 30 years I would put more in broad market and some growth. If you have time you want growth. You can shift more to SCHD as you near retirement to hopefully provide more stability. That said I probably would not go 100% even in retirement.
When you look at the dividend growth and how much money would be generated annually from having bought in over 30 years it would seem quite reasonable that a 100% SCHD would be far more beneficial than a large amount in a index fund with very little yield. It's not about your net worth in 30 years, it's about how much money is generated on a monthly/annual basis.
Thank you for watching and for the question. I see merit in Phil's answer below. Broad market funds have proven to produce quality total returns over many decades. VOO, for example, will take advantage of the growth dominance (like the last 10 years), and the value dominance (prior 100 years overall). It is (usually) roughly an even mix of growth and value. You get a slice of most of the passively managed ETFs that we love. And it takings the timing guess work out of it.
However, I also like to get a little more specific than a broad index even with many years to go. I think a fine balance is a nice way to go. In my early 40's, I go with 33% SCHD / 33% VOO / 17% QQQM / 17% VGT. I added the QQQM recently and I'm not quite up to the allocation. I love tech (VGT is 100% tech), but I felt a 'little' overweight in it with 33% VGT. QQQM is still half tech, but balanced me out a little bit.
I'm not saying my way is the best by any stretch. What I'm advocating for is balance based around your preferences. You could go 100% VOO or 100% VTI and beat 90% of the 'experts' over many decades. You could also go 100% SCHD and grow stable wealth with growing dividends. I would likely slice somewhere in the middle.
If I HAD to pick an extreme, I would go 100% VOO until you were at or nearing retirement, and then go 100% SCHD for cash flow. Again, this is having to pick all or nothing. Like Phil said, I would likely never go 100% of anything at any time realistically.
@JeffTeeples thanks for taking the time to respond. It would be cool to do a fun video on what future projections would look like if a person went 100% in (with regular contributions) into some of the most popular ETFs out there over the course of 30 years like VOO, SCHD, VYM, DGRO, etc. The longterm dividend play is interesting given the amount of projected annual income after 30 year as opposed to the growth of a VOO and then slowly transferring over to say SCHD over time. Either way, keep up the good work. Your content is very helpful.
Do you think splitting SCHD & DGRO 50/50 instead of SCHD 100% is a smart move?
Doing something similar hopefully it works out 😅
No matter how it works out, just you wondering that shows you're ahead of most people. I have friends with so much extra money and won't even spend 5 minutes opening a roth ira and putting away even $50 IN ANYTHING because it's too "boring" 😢 Your plan will do great.
@@tvlookplay Are you splitting your SCHD position in half with DGRO? I have about $150K in my SCHD position (10% of portfolio) along with VOO, QQQM and VGT. I’m thinking about adding DGRO and making it 5% each instead of all 10% into SCHD.
I'm doing this. Not b'cuz I'm down on SCHD, but for diversity. Almost no cross-over. I got the big div & good price appreciation with the mix. Good luck, cheers
I think a 50/50 mix of SCHD and DGRO is an incredible way to go. DGRO is cool because we know it will VERY LIKELY *always* grow its dividend. The methodology screens companies based around that factor (along with not being a REIT & having positive earnings).
I know SCHD has 'grown' its dividends better in the past 10 years by a little bit (better dividend CAGR) and has a higher yield. But I think DGRO is more 'sure fire' in ALWAYS growing the dividends. SCHD has a high probability as well, but is also build around more value, balance sheet health, and yield.
I view SCHD as a portfolio stabilizer with high yield and dividend growth. DGRO gets more tech and growth (22% weighted overlap with QQQM) while also stabilizing dividend growth.
I don't think we can go wrong with either one. The only reason I have 100% SCHD is because I need the 'bond-like' floor with being so heavy in VGT + QQQM + VOO.
SCHD's year over year growth for June 2023 dividend = 5%
Investors say "Waaahhh!!!"
SCHD's year over year growth for June 2024 dividend = 24%
Investors say "I ritch!!!!"
(.05 + .24)/2 = .145 = Two-year dividend CAGR of 14.5%, or just about average.
Math says "Quit living in the moment, and let the me do my thing."
Amen. Love it! People get really into the current trends. It has always been this way. I want to try to help investors stay balanced and stick to their system during all times. Growth has exploded, so it is 'the best' according to all the UA-camrs and articles out there. Meanwhile I'm making videos about SCHD.
When the market flips, I'll be the guy saying 'remember growth does well over long periods of time too' (:
Investing, just like life, is all about balance.
SCHD investor from Türkiye Keep collecting..
Very nice Cemre! Keep that cash flowing! Thanks for watching and for the comment.