Such a blessing to be able to buy SCHD at these prices. Forward yield over 4%. Every other time this happened over the life of the fund it was both short lived and an incredibly profitable time to accumulate shares. Super long $SCHD, especially at these prices.
@@mechanix80 I did, I’m used to saying 60 bc I’ve done a bunch of videos on global x income etfs. But thank you for pointing out! Wish there was an easy way to change it tbh
Gosh darnet Jim you are the man!!!! I completely forgot to mention that. Shoot. And of course this is a video that has blown up for me. You are so correct. I meant to talk about tax advantages and even had it in my video outline before u recorded. Busy life here with my 3 baby girls lol. Have a great Friday
@@ellengraff9328 You still have plenty of time. luckily with SCHD you will get a quarterly (annualized rate) payment of 3.5% which is still impressive in a normal interest rate environment. I expect in about a year or so this should be competitive with HYSA or money market funds, etc...
Great contents. Thanks. I am long on SCHD. The MKT has so much turbulences which create an opportunity for me to add more SCHD. If I wait until a perfect STORM to settle and a beautiful RAINBOW, I will for sure missing out a chance of buying the dip with a great discount in SCHD. Let's go! :)
Hahaha I like the way you word this and thank you for the compliment! I have been buying a lot of the dips these past couple weeks with all the financial sector drops
Everything is down. SCHD is still a great fund. BUY BUY BUY. It'll be back. What we've seen out of this fund in the past was an anomaly. We should have all known that type of performance wasn't going to be forever. Buy it up and look at it in 20 years.
I have SCHD in my IRA that I’m DCA-ing into. I’m thinking about loading up on JEPQ and SVOL with what’s currently going on to generate some income to use the dividends as a waterfall after I reach my desired milestone in JEPQ and SVOL to where they’re generating 2 shares per month on their own. Then I take half of my dividend from JEPQ and SVOL and reinvest it into SCHD.
A lot of people have used similar techniques in the past with QYLD dividends. I’m a personal fan of JEPQ as well, especially as we hit peak interest rates in these upcoming months, and hopefully pause then start to pivot. Seems like you’ve got the strategy, get it done! 😎
This is a question nobody can answer, If they could they would be the richest person in the world lol. I do think that it will continue to be competitive with the s&p500 and be one of the best options for div etfs long term, mostly bc it holds large cap quality companies with high ROE. It would be hard to outperform them long term sustainably with anything other than that. If the S&P continues a 10% growth like it has, we should see similar results from SCHD. As for div growth that’s one of the key factors for how companies are chosen so that will definitely be prioritized as well
Schd will obviously continue to grow vs cash because it invests in the top companies that are making money and pay dividends, which are attractive to investors because they like money, but nobody knows what will happen in the future
@@MMuniz the financials are giving everyone a good opportunity to buy, financial stock are terrible investments but I did buy a couple because I'm a degenerate that likes buying stocks at a 40 percent discount
So when the Fed rate is high, banks pay the Fed more in interest to borrow from it. Therefore, it’s more profitable to borrow from the consumers through CDs? Is that what’s happening? There’s a CD from Goldman Sach that has a 5% interest for 10 months.
Well high yield savings and cds always get up close to the fed funds rate, but when we are at a 2% borrow rate it’s almost negligible and not worth it to hold cash. But yes as the rate goes up for banks to borrow then banks offer higher yields to compete for consumers dollar to then invest themselves. I feel like it’s even more competitive lately since the online banks don’t have brick and mortar so can pay even more
You said that in a higher interest environment like we are in now, SCHD doesn't pay as much dividends as you could get from a bank (I'm thinking CDs, I will be buying some CDs at 4.5% and 5.0% tomorrow which IS a higher dividend than SCHD pays as 3.6% or so). But that overlooks SCHD investing in companies who are dividend GROWTH payers, who increase their dividends year after year. I'm not entirely sure how to track the dividend growth of companies that pay into the dividends of SCHD. Perhaps you could do a video with charts to show what that looks like. On the other hand, I've read that if you reinvest dividends paid even by a company that doesn't INCREASE their dividends each year, your dividends compound year after year. Hmmm...I don't quite understand all of this, but I have bought some SCHD and intend to keep doing so, but do want to thoroughly understand all of this. This was my first video of yours to watch -- I wanted to watch a video with some "negative" observations about SCHD because so many people love SCHD -- though I will carefully think about what you said, and see if it makes sense. SCHD invests in dividend GROWTH stocks, that increase their dividends year after year -- their dividend yield is not a one-to-one comparison with a bank CD with a higher interest rate. Thank you for your video, I'll watch some more.
Wow Paul great question and thanks for taking the time to check out my channel/ leave your feedback. Let me try to explain a bit. Correct, right now bank cds and money market funds pay a higher interest rate/ dividend than SCHD. However, as yiu said, that doesn’t take into account the fact that SCHD can grow its net asset value. So you may buy 10 shares of SCHD today for 70 bucks a share. And if in one year, SCHD nav is 77, yiu gained 10%, in addition to your 3.6% dividend. So your net was 13.6%. Way better than a cd. BUT. This doesn’t take into account risk. SCHD could drop to 63 a share. And yiu essentially lost 6.4% even though you got a 3.6% dividend. That’s what I’m pointing out for the short term. A lot of investors may like the idea of a 5% payout, with 0 risk for the next year or so. But it’s a trade off and up to the individual investor. The market can tank another 20% in the next year, nobody knows. If your money is in a cd you would lose nothing. So that’s what you need to think about in these high rate environments. Hopefully that helps, feel free to ask anything else!
As for dividend growth, that just means they pay out more per share every year. O if it was 12 cents a share last year, the company may give out 13 cents a share this year. But. If net asset value went up, the actual dividend yield might not go up much or at all. So it’s all about balancing dividend yield, growth, and net asset value because you want your portfolio/ nest egg to grow over time. And yes if you reinvest dividends, that means yiur buying more shares with your dividends. So even if it still pays 12 cents a share, If 10 years later you have 100 more shares from reinvesting, your dividend will be 1200 cents more bc you kept reinvesting and growing your dividend nest egg.
@@jweezy5490 you pay monthly for that RH amount. And fidelity offers 3 month 5.10% cds for free. It’s better in every category other than liquidity (3 months)
I’m surprised you believe the traditional energy sector takes a hit because ev’s are being pushed. I highly doubt that. If anything it’s all a new catalyst for the energy sector to pivot and invest in electricity tech which IS the future no matter how much you hate it.
Well, I work in the oil industry and there is no doubt that long term EVs will hurt oil demand in the future. Agreed, it will force adaptation from the companies, but some haven’t started investing in this yet because they think it’s too far off (which I don’t disagree with due to grid infrastructure amongst other things) I don’t think any of this will come to fruition in 2030 like our current admin, but I do think it is something to consider for extremely long term. But this video focuses mostly on short term, where we may get opportunities to capitalize on ev growth depending on what happens. End of the day I hold exon in my portfolio, work for an oil company and love it, and buy SCHD on a weekly basis lol. Also I don’t hate electricity tech lol. Good comment though you made me think for a bit about my answer lol. Have a great Friday Ben!
the issue with SCHD is that you basically need to be all-in to see the 3.5% dividend. as soon as you combine it with growth, you’re back down to 2-2.5%. might as well just hold VOO and eliminate the rebalancing issues
I have a higher portion of voo in all of my accounts, tax advantaged and taxable. Die hard voo man here lol. Low expense. Large cap. Less div which means less taxes as it grows. Can’t go wrong.
Lol this is totally correct but idk about everything tank hahah. We’ll see what happens, but I do think SCHD will hold up somewhat better than big tech names that have less return on equity.
![[UA] NAVI vs MOUZ | BO5 | IEM Rio 2024](http://i.ytimg.com/vi/CMBYk0cbGoA/mqdefault.jpg)
Buy the dips and hold. This is the way. ❤ 1304 shares of SCHD.
Wow 1304 nice!!! This is the way
Great video and SCHD remains a top notch ETF to invest into, especially this year as the uncertainty and fear continues to build!
Agreed, be greedy when others are fearful
Also thank you for the compliment!
Such a blessing to be able to buy SCHD at these prices. Forward yield over 4%. Every other time this happened over the life of the fund it was both short lived and an incredibly profitable time to accumulate shares.
Super long $SCHD, especially at these prices.
I’ve bought quite a few in this 70-72 range the last 2 weeks. Every dip I buy more lol
@@MMuniz you’re a wise man! Same here. I’m hoping for another leg down before my next paycheck hits! A few more bank failures and we may see $65!
@@CalmerThanYouAre1 exactly lol. Paycheck tomorrow morning and bills are paid so it’s time to go shopping. My favorite store is the stock market lol 😂
At 2:13 you say "...$60 for every $10,000...". I know you meant $6 but I figured i mention.
@@mechanix80 I did, I’m used to saying 60 bc I’ve done a bunch of videos on global x income etfs. But thank you for pointing out! Wish there was an easy way to change it tbh
I've been DCA'ing SCHD in my ROTH. Buying extra now. I was too conservative in 2008. I learned my lesson.
I learned mine in 2020. Been buying as much as possible ever since, especially on the dips. Picked up some today at 69 some a share 😎
Buying tomorrow
Long term, SCHD is the perfect investment
It’s in my top 3 holdings for sure!!!
Getting paid more than 3.5% to wait with schd is pretty good
I like my SCHD as well, but I am trying to buy more in the sub 70 range. Picked up some today!
I buy SCHD for the long term benefits, not concerned about short term results.
Smart man here
Investing in SCHD will be better than an online account because of it’s constant dividend CAGR.
Hey Carlos! Agreed 100% for anything long term.
Dividends doesn't pay you extra money it lowers the stock value
@@davidbrooks8809 in a perfect world with dividend price theory share price will depreciate by dividend, that is true in finance.
SCHD are qualified dividends vs interest income which is ordinary, best is always to review total return and diversify.
Gosh darnet Jim you are the man!!!! I completely forgot to mention that. Shoot. And of course this is a video that has blown up for me. You are so correct. I meant to talk about tax advantages and even had it in my video outline before u recorded. Busy life here with my 3 baby girls lol. Have a great Friday
5:15 shots fired at KO! Just bought more KO by the way.
Hahaha only for short term swing trades hahah. Can’t go wrong with any of these large cappers 😂😂
Corn pop is a bad dude! But regardless I’m gonna stay the course with SCHD 💯whilst it’s on sale! Investing in this great etf for the long term!
I’ve been buying shares every dip the past 2 weeks lol. Same, holding for 40+ years lol
Yes sir let’s gooooo💪
@John Denver I'm 55,not sure at my age I have time
@@ellengraff9328 You still have plenty of time. luckily with SCHD you will get a quarterly (annualized rate) payment of 3.5% which is still impressive in a normal interest rate environment. I expect in about a year or so this should be competitive with HYSA or money market funds, etc...
@@MMuniz thanks for the response. Tomorrow will be exciting. I'm in
I just got my first share of “SCHD” had it for 5 days now , not really worried about it being down I’m in it for the long run 🏃♂️?
Can’t argue that, congrats on your first share!!!
@@MMuniz I appreciate it, I’m just trying to earn money from investing 💯
Great contents. Thanks.
I am long on SCHD.
The MKT has so much turbulences which create an opportunity for me to add more SCHD. If I wait until a perfect STORM to settle and a beautiful RAINBOW, I will for sure missing out a chance of buying the dip with a great discount in SCHD.
Let's go! :)
Hahaha I like the way you word this and thank you for the compliment! I have been buying a lot of the dips these past couple weeks with all the financial sector drops
I like SCHD.
Money man I love SCHD as well. Happy Friday!
Everything is down. SCHD is still a great fund. BUY BUY BUY. It'll be back. What we've seen out of this fund in the past was an anomaly. We should have all known that type of performance wasn't going to be forever. Buy it up and look at it in 20 years.
Agree 100% with this. Been buying dips almost daily lately lol.
Did you say .06% expense ratio results in $60 cost per $10,000 invested? I think you mean $6?
I did and you are correct! I’m so used to the global x etfs that have .6% este like QYLD RYLD etc… my mistake and thanks for pointing out!
I have SCHD in my IRA that I’m DCA-ing into. I’m thinking about loading up on JEPQ and SVOL with what’s currently going on to generate some income to use the dividends as a waterfall after I reach my desired milestone in JEPQ and SVOL to where they’re generating 2 shares per month on their own. Then I take half of my dividend from JEPQ and SVOL and reinvest it into SCHD.
A lot of people have used similar techniques in the past with QYLD dividends. I’m a personal fan of JEPQ as well, especially as we hit peak interest rates in these upcoming months, and hopefully pause then start to pivot. Seems like you’ve got the strategy, get it done! 😎
I skipped the Starbucks coffee and bought schd yesterday :/
That is the winning play!
Do you believe that schd can continue to grow 12% on its dividends and 11% on share price? If not, what's more realistic for 20-30yrs down the line?
This is a question nobody can answer, If they could they would be the richest person in the world lol. I do think that it will continue to be competitive with the s&p500 and be one of the best options for div etfs long term, mostly bc it holds large cap quality companies with high ROE. It would be hard to outperform them long term sustainably with anything other than that. If the S&P continues a 10% growth like it has, we should see similar results from SCHD. As for div growth that’s one of the key factors for how companies are chosen so that will definitely be prioritized as well
Schd will obviously continue to grow vs cash because it invests in the top companies that are making money and pay dividends, which are attractive to investors because they like money, but nobody knows what will happen in the future
Great in-depth Muniz, I never thought about the CDs and not having SCHD. Another reason is that ABBVIE has performed badly this year.
Yeah exactly, a few standout companies along with financials sector really taking a hit lately. Just gives us a fire sale 🔥
@@MMuniz the financials are giving everyone a good opportunity to buy, financial stock are terrible investments but I did buy a couple because I'm a degenerate that likes buying stocks at a 40 percent discount
@@jweezy5490 you know your stuff, and same same lol 😂
So when the Fed rate is high, banks pay the Fed more in interest to borrow from it. Therefore, it’s more profitable to borrow from the consumers through CDs? Is that what’s happening? There’s a CD from Goldman Sach that has a 5% interest for 10 months.
Well high yield savings and cds always get up close to the fed funds rate, but when we are at a 2% borrow rate it’s almost negligible and not worth it to hold cash. But yes as the rate goes up for banks to borrow then banks offer higher yields to compete for consumers dollar to then invest themselves. I feel like it’s even more competitive lately since the online banks don’t have brick and mortar so can pay even more
Great video. Love SCHD.
💸😎
You said that in a higher interest environment like we are in now, SCHD doesn't pay as much dividends as you could get from a bank (I'm thinking CDs, I will be buying some CDs at 4.5% and 5.0% tomorrow which IS a higher dividend than SCHD pays as 3.6% or so). But that overlooks SCHD investing in companies who are dividend GROWTH payers, who increase their dividends year after year. I'm not entirely sure how to track the dividend growth of companies that pay into the dividends of SCHD. Perhaps you could do a video with charts to show what that looks like. On the other hand, I've read that if you reinvest dividends paid even by a company that doesn't INCREASE their dividends each year, your dividends compound year after year. Hmmm...I don't quite understand all of this, but I have bought some SCHD and intend to keep doing so, but do want to thoroughly understand all of this. This was my first video of yours to watch -- I wanted to watch a video with some "negative" observations about SCHD because so many people love SCHD -- though I will carefully think about what you said, and see if it makes sense. SCHD invests in dividend GROWTH stocks, that increase their dividends year after year -- their dividend yield is not a one-to-one comparison with a bank CD with a higher interest rate. Thank you for your video, I'll watch some more.
Wow Paul great question and thanks for taking the time to check out my channel/ leave your feedback. Let me try to explain a bit. Correct, right now bank cds and money market funds pay a higher interest rate/ dividend than SCHD. However, as yiu said, that doesn’t take into account the fact that SCHD can grow its net asset value. So you may buy 10 shares of SCHD today for 70 bucks a share. And if in one year, SCHD nav is 77, yiu gained 10%, in addition to your 3.6% dividend. So your net was 13.6%. Way better than a cd. BUT. This doesn’t take into account risk. SCHD could drop to 63 a share. And yiu essentially lost 6.4% even though you got a 3.6% dividend. That’s what I’m pointing out for the short term. A lot of investors may like the idea of a 5% payout, with 0 risk for the next year or so. But it’s a trade off and up to the individual investor. The market can tank another 20% in the next year, nobody knows. If your money is in a cd you would lose nothing. So that’s what you need to think about in these high rate environments. Hopefully that helps, feel free to ask anything else!
As for dividend growth, that just means they pay out more per share every year. O if it was 12 cents a share last year, the company may give out 13 cents a share this year. But. If net asset value went up, the actual dividend yield might not go up much or at all. So it’s all about balancing dividend yield, growth, and net asset value because you want your portfolio/ nest egg to grow over time.
And yes if you reinvest dividends, that means yiur buying more shares with your dividends. So even if it still pays 12 cents a share, If 10 years later you have 100 more shares from reinvesting, your dividend will be 1200 cents more bc you kept reinvesting and growing your dividend nest egg.
I don't know why anyone buys CDs these days with high yield savings, I'm getting 4.65 percent from Robinhood and my cash is liquid
@@jweezy5490 you pay monthly for that RH amount. And fidelity offers 3 month 5.10% cds for free. It’s better in every category other than liquidity (3 months)
@@MMunizI pay 5 dollars monthly which is well worth the cost of having liquid money, CDs are not free because you are locked into an investment
VTI. !!!!!
Can’t go wrong owning all the USA stocks!
I bought 66 shares today. If any stocks continue underperforming they will be out March 2024. SCHD is the S&P of dividend investing.
Can’t argue that, 66 nice! I’ve picked up 6 this week. Maybe 7 lol. 😂
@@MMuniz SCHD will always be the dividend GOAT.
I’m surprised you believe the traditional energy sector takes a hit because ev’s are being pushed. I highly doubt that. If anything it’s all a new catalyst for the energy sector to pivot and invest in electricity tech which IS the future no matter how much you hate it.
Well, I work in the oil industry and there is no doubt that long term EVs will hurt oil demand in the future. Agreed, it will force adaptation from the companies, but some haven’t started investing in this yet because they think it’s too far off (which I don’t disagree with due to grid infrastructure amongst other things) I don’t think any of this will come to fruition in 2030 like our current admin, but I do think it is something to consider for extremely long term. But this video focuses mostly on short term, where we may get opportunities to capitalize on ev growth depending on what happens. End of the day I hold exon in my portfolio, work for an oil company and love it, and buy SCHD on a weekly basis lol. Also I don’t hate electricity tech lol. Good comment though you made me think for a bit about my answer lol. Have a great Friday Ben!
SCHD is discounted. Do your Dollar cost average + 20% and gain some serious value in your portfolio.
Can’t argue this. Finance sector gave us some big sales
the issue with SCHD is that you basically need to be all-in to see the 3.5% dividend. as soon as you combine it with growth, you’re back down to 2-2.5%. might as well just hold VOO and eliminate the rebalancing issues
I have a higher portion of voo in all of my accounts, tax advantaged and taxable. Die hard voo man here lol. Low expense. Large cap. Less div which means less taxes as it grows. Can’t go wrong.
SCHD was tested during a bull market so it looked really good. Having said that, everything will tank. Good luck.
Lol this is totally correct but idk about everything tank hahah. We’ll see what happens, but I do think SCHD will hold up somewhat better than big tech names that have less return on equity.
Is helping the little guy 50 yr Hugh inflation and $5 gas.
I'll pass on the help
Hence the meme! 😂😂😂
Schd will go to 0 dont be a sucker ..Bilz will go to the moon
😂😂😂