Great video, as always! I have been a proud owner of SCHD for the past 3.5 years and Loving it! Never lost focus since the fund has the best metrics I have ever seen. If SCHD pays the same amount it paid on Quarter 4 of 2023 this year, then we would be sitting at a Dividend CAGR of 10.30% for all 4 quarters of 2024 which is within the realm of what was mentioned in this video, however, I truly believe this coming December will beat quarter 4 of 2023, therefore, I'm confident we are looking at a Dividend CAGR of 11%+ once compared 2023 to 2024 in its entirety. (The final dividend CAGR gained from last year). LOVE IT!!!! Keep accumulating guys.
Hey Carlos. I'm with you 100%! I think SCHD will crush last years Q4 dividend because of the new holding mix after the reconstitution last year. 10% is very conservative, but I'm hoping for another 15%+ win. I'll be here when that time comes (:
Remember Jeff, that first quarter dividend was from stocks held prior to the reconstitution of SCHD. So I would expect something higher than 10% for Q4.
Absolutely! That is a great point (that I did forget to mention in the video). I think +10% is very conservative for that one. Can't wait to see what Q4 actually pays.
It’s my ‘long-term’ cash flow king. The yield on cost gets wild as that dividend grows over many years. If it dips by 20% in a downturn? Oh well, still up 100’s of % overall on price and dividend growth (:
Thanks for watching and commenting. SCHD is such a solid ETF. I know it's been 'underperforming' in the recent bull run the past couple years, but the fundamentals are still there. I think SCHD holders will be happy as the market reverts to the mean in the coming years.
Hey Eric. I had to bust out the SCHD bling for this one! Hoping it gives me a reason to get it out once per quarter (: Thanks for watching and for all your support of the channel.
Another banger Jeff! Another underrated rated aspect of SCHD’s methodology that almost guarantees dividend growth is the annual yield based reconstruction that sells low yielders and replaces with higher yielders. 😎
Thanks for the kind words. Yeah, and I know it makes investors mad every year (look at the reaction to dropping AVGO this year, for example). But every fund isn't made to min-max total returns. The methodology is great for allowing SCHD to do what it does with consistency.
You and me both! It will be exciting to see if any price action follows. I think the hype train could help it out a bit (even though it is technically an identical investment after the split for all key metrics).
Thanks for watching and for the comment. I wish the dividend per share would have stayed the same. That would give us a nice boost! Oh well, maybe next time.
GREAT video.... Thought it was either New Years or I was watching an old Rap Master Flavor Flav video... Holy Smokes... Neither... It TEEP$... on a Friday no less!!!! ...... Love $CHD - cannot wait to see this hit the brokerage.....Alright - Let's Grow..... Toss the Bling Bling to the side and let's start chanting Cha-Ching Cha-Ching..... All the best to you and the family for a great weekend....
Hey Lance. You got me laughing at Flavor Flav haha. SCHD made it to where I had to bust out the bling! Hopefully it keeps making me do it in future quarters. Have a great weekend!
SCHD does rock. I'm with you there. I think prices usually trend upwards after a split more often than not. It doesn't 'really' do anything great, technically, but investors like the cheaper price tag per share. It also makes it more accessible in brokers that don't offer fractional shares (like Schwab).
I just started my dividend investing by buying a single SCHD share on cashapp. Would love to know more about high yeild dividend investing. I have a pretty high risk tolerance
Jeff, after the split I'll be at 15k shares of SCHD! I'll will continue to add for the next 10 years then I'll sit back an relax I'm powering my portfolio with $4k every single month for a decades!
That is incredible! Thanks for leaving this inspiring comment. I'll be around 13,500 after the split. I'll continue to add as well, I can't wait to hit major share milestones. I know the share split 'doesn't matter' from a value perspective, but I would be lying if I told you it didn't feel awesome to accumulate more shares (:
@oleboy4332 - unless you're 90 years old and planning to die at 94, you're making a mistake on 2 fronts. 1. After 4 years, a 3.5% yield growing at 10% will equal 5.12%. Each year after that, your return will be greater than 5%. Plus, you will have the share price growth. Something your CD will not have if you hold it to term. 2. When the Fed is finished lowering interest rates in 2 years, what will the CD rates be for renewal? Probably much less than 5%, right?
This is a common sentiment, and I don't blame you for thinking this way. However, SCHD will get to 5% on cost (buying at the same time as the CD) in a very short time believe it or not. We can use the rule of 72 for this. An investment will double in the amount of time that 72 dividend by the growth rate results. For example, SCHD has a 10 year CAGR of over 11%. This means cash-flow doubles every 6 1/2 years. In other words, SCHD yields 7% on cost in 6 1/2 years from now. Then 14% 'yield on cost' in 6 1/2 more years. Then 28% in 6 1/2 more years. If you look at the example in the video, those are real numbers. Nothing assumed. It seems fake, but it's not. If you don't need the principal amount of your investment (can afford some ups and downs) then CDs are a complete waste of long-term cash flow. Just thinking, in 3 years you have the '5% CD', and it only goes up. As federal fund rates, and CDs, continue to drop. Bad lock in.
Do you think schd will one day get back to 84$ a share after the split? I’m almost at 100 shares and buying 1000$ more every month. This is my long term hold. Who needs to switch to bonds when there’s Schd.
Hey Kevin. Amen to that! Bonds will always underperform on a DCA investing career (any stretch in a 'career' timeframe market history) because of the lack of predictable growth. It's funny because people bring up 11 year stretches that bonds were better (in bad stocks markets). But this is when stocks make people even richer, technically, on paper (realistic dollar cost averaging habits through it all). Bonds only make sense if you *NEED* the principal amount beyond the cash flow, and even then, I like SCHD. Lending a company money will *never* make sense compared to owning a slice of the company. Well over a century of proof and people still struggle with this one. As far as SCHD getting back to $84, it likely will. Well, I mean, I guess it technically could split *again*. But assuming it didn't, it would be at $84 per share in 22 years if it only grew at and average of 6% per year. This compound stuff is crazy. The craziest part is that this isn't even considering any reinvestments of dividends or cash flow growth. In those 22 years, brace yourself, the yield on cost from the day of the split would be 35.7%. A little better than CDs and HYSA (:
Now all the nay-sayers and critics are loving SCHD 😅. Where did all the dump SCHD youtubers go? I’m happy for my young son starting out with a few shares. He can now afford the whole stock on tight money months.
I always laugh at that stuff. Investing is funny because people have it backwards. They usually sell when things are out of favor (selling low) and buy when something is on fire and the new hot item (buying high). I'll stick to buying to my target allocations in all markets, personally. If tech crashes 50% and everyone is screaming to buy value only, I'll be the one guy saying 'buy VGT now'! lol. Because long-term, we make more money buying the beat up positions (assuming they are solid investments in the first place of course).
Who cares about the all-time high payment for this quarter? Most of us are making SCHDs annual yield in one month on the latest high yield ETFs, XDTE, QDTE, and outperforming the whole index in total return , there’s a lot of new funds coming out every year and new strategies you gotta stay on top of new etfs
Assuming the market continues to go up over the long run (which it has for a couple centuries), it is mathematically impossible for a covered call ETF like XDTE to outperform its underlying index with a 95 basis points expense ratio. Technically, it's near impossible even without the ER. It's how the floors and ceilings work with covered calls. The same could be said about JEPQ and JEPI. These strategies are far from new. Don't get me wrong, the high yield may be perfect for a retiree or someone that needs cash-flow. I use one of them now. But you specifically brought up total return without understanding the underlying strategy and purpose in depth. I high recommend studying this one, and I don't say that in a negative or condescending way, but I can tell you this has been 'mathed' out over many decades time and time again. This is coming from someone that also likes covered call ETFs, but happens to double as a reading / math nerd. I respect your preference, but don't want misinformation being spread, at least on my channel.
@@JeffTeeples I don’t think it’s impossible to match the total return of the S&P 500 if the traders on this fund are getting at least a 70% win rate on their daily calls out of the money which they have been getting that sense inception I guess time will we can revisit this total return in one or two years and see where it’s at
I hate to burst your bubble on this but there are many we can examine now to show how this works over time. Again, in a falling market the covered calls can (and usually do) outperform the underlying index. This is nothing new to experienced investors. There is nothing wrong with you experimenting with covered call ETFs. But to call it a new strategy doesn't make sense. Also, 95 basis points is VERY steep for any type of ETF. That is deep 6 or 7 figures of cost over an investing career with the compound considered.
The dividend per share will be retroactively 'split adjusted'. It makes the money received the same. You only get 1/3 of the dividend per share, but you have 3 times more shares. The total dividends received will be identical.
Holding 50 shares right now and after split will try to accumulate shares faster!!!! Great video!
Very nice Jay! Keep stacking it up. I think SCHD will do well for us for many years to come.
Thank you for the update on SCHD!
No problem. I will be here at least once per quarter with all the juicy SCHD details. Thanks for watching.
Great video, as always!
I have been a proud owner of SCHD for the past 3.5 years and Loving it! Never lost focus since the fund has the best metrics I have ever seen. If SCHD pays the same amount it paid on Quarter 4 of 2023 this year, then we would be sitting at a Dividend CAGR of 10.30% for all 4 quarters of 2024 which is within the realm of what was mentioned in this video, however, I truly believe this coming December will beat quarter 4 of 2023, therefore, I'm confident we are looking at a Dividend CAGR of 11%+ once compared 2023 to 2024 in its entirety. (The final dividend CAGR gained from last year).
LOVE IT!!!! Keep accumulating guys.
Hey Carlos. I'm with you 100%! I think SCHD will crush last years Q4 dividend because of the new holding mix after the reconstitution last year. 10% is very conservative, but I'm hoping for another 15%+ win. I'll be here when that time comes (:
@@JeffTeeples Amen brother 💪💪
Nice update - I'm looking forward to continued growth with SCHD!
Thanks John. You and me both. I love the consistent growth SCHD has given its investors over the years.
Remember Jeff, that first quarter dividend was from stocks held prior to the reconstitution of SCHD. So I would expect something higher than 10% for Q4.
Absolutely! That is a great point (that I did forget to mention in the video). I think +10% is very conservative for that one. Can't wait to see what Q4 actually pays.
@@JeffTeeples great entertaining video anyway
SCHD absolutely canes Bonds!
It’s my ‘long-term’ cash flow king. The yield on cost gets wild as that dividend grows over many years. If it dips by 20% in a downturn? Oh well, still up 100’s of % overall on price and dividend growth (:
One of my favorite investments
Thanks for watching and commenting. SCHD is such a solid ETF. I know it's been 'underperforming' in the recent bull run the past couple years, but the fundamentals are still there. I think SCHD holders will be happy as the market reverts to the mean in the coming years.
Thanks for a great explanation of the recent SCHD changes, Jeff. Love the bling!
Hey Eric. I had to bust out the SCHD bling for this one! Hoping it gives me a reason to get it out once per quarter (: Thanks for watching and for all your support of the channel.
Great update on the SCHD happenings. Really liking your more frequent posts. Thanks a bunch!
Thanks Roy. I appreciate your consistent support of the channel. Been fun to see how similar our thinking is over time.
Great video, Thank you 😊
Thank you for watching and for the kind words. I appreciate it.
Awesome video!
Thanks Oldrin. SCHD made my job easy this time. It's been a nice run in the past quarter.
Another banger Jeff! Another underrated rated aspect of SCHD’s methodology that almost guarantees dividend growth is the annual yield based reconstruction that sells low yielders and replaces with higher yielders. 😎
Thanks for the kind words. Yeah, and I know it makes investors mad every year (look at the reaction to dropping AVGO this year, for example). But every fund isn't made to min-max total returns. The methodology is great for allowing SCHD to do what it does with consistency.
Can’t wait for the split
You and me both! It will be exciting to see if any price action follows. I think the hype train could help it out a bit (even though it is technically an identical investment after the split for all key metrics).
keep pumping out those financial informational videos Jeff!!!!
Thanks Kevin! Will do. I appreciate your consistent support of the channel.
Thanks for the update Jeff! Happily adding more shares of SCHD
Hey Kent. No problem. This is one ETF I will likely always make a quarterly update on (good and bad quarters).
Thanks Jeff,another great video!!!
Thanks for watching and for the kind words. I appreciate it.
Thank you for the update! I thought it was too good to be true that the dividends per share would stay the same after the split 😂
Thanks for watching and for the comment. I wish the dividend per share would have stayed the same. That would give us a nice boost! Oh well, maybe next time.
GREAT video.... Thought it was either New Years or I was watching an old Rap Master Flavor Flav video... Holy Smokes... Neither... It TEEP$... on a Friday no less!!!! ...... Love $CHD - cannot wait to see this hit the brokerage.....Alright - Let's Grow..... Toss the Bling Bling to the side and let's start chanting Cha-Ching Cha-Ching..... All the best to you and the family for a great weekend....
Hey Lance. You got me laughing at Flavor Flav haha. SCHD made it to where I had to bust out the bling! Hopefully it keeps making me do it in future quarters. Have a great weekend!
665 shares pre split 🎉🎉🎉
We’re about to see that number pop! Will be fun to have more shares just for cool factor.
Great Video Jeff!
Thanks Bruce! Appreciate you taking the time to watch and comment. Also, love the shiny 6 month member badge!
SCHD rocks !! Thank you for the update. Wonderinng..do prices usually go down after the split .
SCHD does rock. I'm with you there. I think prices usually trend upwards after a split more often than not. It doesn't 'really' do anything great, technically, but investors like the cheaper price tag per share. It also makes it more accessible in brokers that don't offer fractional shares (like Schwab).
Hello from Missouri.
Hello from WA state. Thank you for all the support you’ve given the channel by watching and commenting since the early days.
@JeffTeeples You're welcome.
I just started my dividend investing by buying a single SCHD share on cashapp. Would love to know more about high yeild dividend investing. I have a pretty high risk tolerance
Very nice! Nowhere to go but up from here. We all start somewhere. Careful, this stuff gets addicting (: At least it is a good thing.
@@JeffTeeples word
Hadouken!!!
Love it! Had to throw that one in, and figured what better time to do it than an SCHD video. Thanks for watching.
Are you absolutely sure those are the numbers WITHOUT reinvesting the dividends?!?! 😮
100%. I’ve even recreated the scenario in portfolio visualizer to parallel test it to confirm I wasn’t crazy (:
Jeff, after the split I'll be at 15k shares of SCHD! I'll will continue to add for the next 10 years then I'll sit back an relax I'm powering my portfolio with $4k every single month for a decades!
That is incredible! Thanks for leaving this inspiring comment. I'll be around 13,500 after the split. I'll continue to add as well, I can't wait to hit major share milestones. I know the share split 'doesn't matter' from a value perspective, but I would be lying if I told you it didn't feel awesome to accumulate more shares (:
Please video about international schy and schf
I have those ones on my watch & future video list. Thanks for watching and for the comment.
@@JeffTeeples thank you
My issue is I can get 5% on a CD now. The increases are great but it starts so small, it takes too long for a guy my age.
@oleboy4332 - unless you're 90 years old and planning to die at 94, you're making a mistake on 2 fronts.
1. After 4 years, a 3.5% yield growing at 10% will equal 5.12%. Each year after that, your return will be greater than 5%. Plus, you will have the share price growth. Something your CD will not have if you hold it to term.
2. When the Fed is finished lowering interest rates in 2 years, what will the CD rates be for renewal? Probably much less than 5%, right?
This is a common sentiment, and I don't blame you for thinking this way. However, SCHD will get to 5% on cost (buying at the same time as the CD) in a very short time believe it or not. We can use the rule of 72 for this.
An investment will double in the amount of time that 72 dividend by the growth rate results.
For example, SCHD has a 10 year CAGR of over 11%. This means cash-flow doubles every 6 1/2 years.
In other words, SCHD yields 7% on cost in 6 1/2 years from now. Then 14% 'yield on cost' in 6 1/2 more years. Then 28% in 6 1/2 more years.
If you look at the example in the video, those are real numbers. Nothing assumed. It seems fake, but it's not.
If you don't need the principal amount of your investment (can afford some ups and downs) then CDs are a complete waste of long-term cash flow.
Just thinking, in 3 years you have the '5% CD', and it only goes up. As federal fund rates, and CDs, continue to drop. Bad lock in.
You celebrated the Halloween 🦇 early this year.
Oh man, it is a Halloween house here in the Teeples household. Both my kids love Halloween.
Do you think schd will one day get back to 84$ a share after the split? I’m almost at 100 shares and buying 1000$ more every month. This is my long term hold. Who needs to switch to bonds when there’s Schd.
Hey Kevin. Amen to that! Bonds will always underperform on a DCA investing career (any stretch in a 'career' timeframe market history) because of the lack of predictable growth. It's funny because people bring up 11 year stretches that bonds were better (in bad stocks markets). But this is when stocks make people even richer, technically, on paper (realistic dollar cost averaging habits through it all). Bonds only make sense if you *NEED* the principal amount beyond the cash flow, and even then, I like SCHD. Lending a company money will *never* make sense compared to owning a slice of the company. Well over a century of proof and people still struggle with this one.
As far as SCHD getting back to $84, it likely will. Well, I mean, I guess it technically could split *again*. But assuming it didn't, it would be at $84 per share in 22 years if it only grew at and average of 6% per year. This compound stuff is crazy. The craziest part is that this isn't even considering any reinvestments of dividends or cash flow growth.
In those 22 years, brace yourself, the yield on cost from the day of the split would be 35.7%. A little better than CDs and HYSA (:
Now all the nay-sayers and critics are loving SCHD 😅. Where did all the dump SCHD youtubers go? I’m happy for my young son starting out with a few shares. He can now afford the whole stock on tight money months.
I always laugh at that stuff. Investing is funny because people have it backwards. They usually sell when things are out of favor (selling low) and buy when something is on fire and the new hot item (buying high).
I'll stick to buying to my target allocations in all markets, personally. If tech crashes 50% and everyone is screaming to buy value only, I'll be the one guy saying 'buy VGT now'! lol. Because long-term, we make more money buying the beat up positions (assuming they are solid investments in the first place of course).
@@JeffTeeples agree 👍 100%. Thank for your solid advice.
Who cares about the all-time high payment for this quarter? Most of us are making SCHDs annual yield in one month on the latest high yield ETFs, XDTE, QDTE, and outperforming the whole index in total return , there’s a lot of new funds coming out every year and new strategies you gotta stay on top of new etfs
Assuming the market continues to go up over the long run (which it has for a couple centuries), it is mathematically impossible for a covered call ETF like XDTE to outperform its underlying index with a 95 basis points expense ratio. Technically, it's near impossible even without the ER. It's how the floors and ceilings work with covered calls. The same could be said about JEPQ and JEPI.
These strategies are far from new. Don't get me wrong, the high yield may be perfect for a retiree or someone that needs cash-flow. I use one of them now. But you specifically brought up total return without understanding the underlying strategy and purpose in depth. I high recommend studying this one, and I don't say that in a negative or condescending way, but I can tell you this has been 'mathed' out over many decades time and time again. This is coming from someone that also likes covered call ETFs, but happens to double as a reading / math nerd. I respect your preference, but don't want misinformation being spread, at least on my channel.
@@JeffTeeples I don’t think it’s impossible to match the total return of the S&P 500 if the traders on this fund are getting at least a 70% win rate on their daily calls out of the money which they have been getting that sense inception I guess time will we can revisit this total return in one or two years and see where it’s at
I hate to burst your bubble on this but there are many we can examine now to show how this works over time. Again, in a falling market the covered calls can (and usually do) outperform the underlying index. This is nothing new to experienced investors. There is nothing wrong with you experimenting with covered call ETFs. But to call it a new strategy doesn't make sense. Also, 95 basis points is VERY steep for any type of ETF. That is deep 6 or 7 figures of cost over an investing career with the compound considered.
😂😂 What a great start to a surprise Friday video!
Haha, thanks. I figured some might think ‘what’s wrong with this guy?!?’. A lot, but oh do I love SCHD!
Once the split takes place, will the divident per share stay the same?
The dividend per share will be retroactively 'split adjusted'. It makes the money received the same. You only get 1/3 of the dividend per share, but you have 3 times more shares. The total dividends received will be identical.