IMPORTANT ANNOUNCEMENTS: Thanks for watching! If you enjoyed the video, please don't forget to "like" and "subscribe". Please share in the comments below your thoughts about SCHD. HELPFUL RESOURCES: Here's my first video the banking crisis: ua-cam.com/video/j1P3j22xK0s/v-deo.html Here's my second video on the banking crisis: ua-cam.com/video/OEUvAADBnZU/v-deo.html My number 1 dividend stock for bill-paying power: ua-cam.com/video/s1Q8LXy_x1s/v-deo.html Here is my video about my favorite Treasury Bond: ua-cam.com/video/eGEAUSRjxlY/v-deo.html PPC IAN INSTAGRAM: I'm sharing some great content over on Instagram. Check out my Instagram stories and reels. I'm @ianlopuch: instagram.com/ianlopuch/ CHECK OUT MY PATREON: I'm sharing exclusive bonus content over on Patreon! I offer two tiers: Backyard Patreon and Corner Patreon. My Backyard Patrons see my stock trades, each accompanied by a blog post write-up. They also have access to 50 historical Patreon-exclusive videos. In addition to all Backyard Patron perks, my Corner Patrons also have access to my complete dividend stock portfolio (% allocation to each position) AND my complete bond portfolio (% allocation to each position). They additionally enjoy exclusive portfolio update videos, Corner Patreon virtual meet-ups, an exclusive Discord server, and more. Head on over to Patreon to join today: www.patreon.com/ppcian PPC IAN EMAIL LIST: Join my email list today for helpful updates, and a look at some of my historical dividend stock portfolios: www.ppcian.com/my-complete-dividend-stock-portfolio/ PPC IAN TWITTER: I'm always sharing fun updates on Twitter. Here's my dividend investing Twitter: twitter.com/ianlopuch COOL DIVIDEND INVESTING MERCH: I offer some really amazing dividend investing merch that is sure to make you look and feel great. Each purchase supports my UA-cam channel: teespring.com/stores/ppcian Thanks so much, everyone, for your support. I hope you enjoy the video today! (Disclosure and Disclaimer: Please see video description for disclosures and disclaimers.)
Great video. SCHD is designed to be a core holding in a diversified portfolio, according to their website. I own this fund, and my bet is that it will have a defensive characteristic if we have a recession. Great video.
Dividends got me into investing in the stock market. In my opinion, if you're investing and have income other than dividends, you can live on dividends without selling. That means you can pass this on to your kids to give them a head start in life. I have over $600,000 in my portfolio; A combination like (DVY, VIG, SDY, SCHD & JEPI) because I've bought a lot of dividend stocks before. I am buying more now and will buy more in the future.
Investing in REITs and high-dividend-paying companies long-term is a simple strategy for creating intergenerational wealth. It's surprising that over 98% of billionaires are stock investors, expanding their billion-dollar portfolios. The rich do what the poor fear!
@@IAMBETTERTHANYYOU Unfortunately When it comes to investing, most people seems to be ignorant and nonchalant towards it, when investments should be the best thing anybody can do for themselves. till today my profits in stocks and crypto continue to impact my wealth greatly. Therefore i don't feel any urge to solely depend on my salary or wait for the market to enter a bull run.
When it comes to investing, people should not be ignorant or fearful. If so, you should be an early adopter. With the support of my Financial Advisor, "Theresa Dana Peek, I am heavily invested in stocks and digital currency investments. She has properly managed my investments so far and I have accumulated over $87,000 in the last 6 months.
I sold all my individual stocks and have been investing heavily into SCHD, and it now makes up 33% of my portfolio along with VTI, VUG and SPAXX. I have added REITS to my portfolio because SCHD doesn't have any. It saves me a lot of time having ETFs versus keeping track of all my individual stocks. Now I can just go ride my bike!!!!! 😂
Thanks, my friend, for watching since those old school days! A lot has changed in our world since then, that is for sure! (And, I continue to evolve as an investor too, with my risk tolerance going down over time.) Here's the video (for those who have not seen): ua-cam.com/video/_ATtFMeGbQM/v-deo.html I don't own any SCHD yet, but it's almost certain I'll start a position in the coming months/year. (Disc: I plan on starting a position in SCHD)
Ah yes, but he also got crazy in 2021 and went into XYLD also. Super support your decision, Ian! Bought my first tranche when 3m took a poo last year and haven't looked back.
I have slowly built up a position of thousands of SCHD shares over the years and have been very happy with both the dividend increases and the capital appreciation. In the future, it may possibly under perform an S&P 500 index, but the dividend yield is better, so SCHD may be particularly good for those who want to eventually draw a generous dividend income in retirerent without selling shares of stock.
Completely agree. A lot of people say go for growth as you're accumulating and then switch to dividends when you are ready to retire- I think that makes sense in a tax sheltered retirement account, but with your investments outside of a retirement account, I would rather invest in something like SCHD that appears likely to at least remain in the ballpark of keeping up with the S&P 500 in growth and has the dividends too. Selling out of 20+ years of growth to switch over to dividend stocks is likely to leave you with one hell of a tax bill, IMHO.
I appreciate your comments and your time spent investing in schd. Do you know if the dividends are qualified for tax purposes? I am asking because i have a taxable account. Best wishes!!
Gave you the requested "Like". I did like your presentation, the teaser title, and the idea that you went full circle to say, "No" you would not be selling your other positions and going all in on SCHD. I also liked your analysis, an every-person, easy to understand roll-out. Like you, I own and I'm adding to my position in SCHD. I've rearranged my buying schedule to focus on SCHD because of its strong make-up and strong performance. Again, like you, I prefer the fund to buy and sell and create the fund. If at some point I don't like where the fund is going, I just have one holding to be concerned about, not several. Anyway, good content. Cheers
Excited to finally hear you talking about this one. I’ve been moving towards SCHD recently, even selling out of a handful of individual stocks to buy more SCHD. I’m 27 with about 136k invested (mostly individual dividend growth stocks) and have been watching your channel since I first started investing. I’d built up my SCHD position to almost 30k, but recently sold about 10k to put into several financials (BAC, SCHW, AXP, PRU, MS, FITB) to try and take advantage of the recent sell off. Time will tell if that was a good move haha.
SCHD is my core position at about 22% of my taxable account. I like the diversification and the investment criteria of the fund. I add to it every week. Similar to what you mentioned, I like the automated approach to the investment process. Provides some peace of mind. It has a nice yield and dividend growth rate to provide future me (and my wife) the income to pay our bills when we retire. Thanks for the video!
You have taught me a LOT with your UA-cam videos -- the most important being CAGR (compound average growth rate) of growing dividends, and the principle of compound interest more generally. I have become worn out studying individual stocks, and recently ran across SCHD -- an ETF focused on much of what I have learned from you, with the same perspective about compounding dividends over years. With no more energy to spend hours on individual stocks, what I decided to do was sell most of my single stocks and put most of my capital into an ETF or ETFs -- ie. like SCHD which follows your perspectives on dividend CAGRs over 5, 10, 15+ years. After being paid significant dividends quarterly, from now on I will spend a little time each quarter with a "dividend calculator" to see how much my compounding of SCHD dividends to date will grow over 10, 15, 20+ years -- to encourage me to stay the course, to add more capital each week, month, and quarterly to an ETF like SCHD. It was affirming to watch this UA-cam video from you about SCHD, affirming the conclusions that I had already come to --- that I needed more diversity, and if I am worn out researching single stocks, then I should deploy capital into ETFs like SCHD. Thank you for all of your videos which I will continue watching! Perhaps it is ok to invest more broadly into an ETF that values the same qualities that are valued in single stocks. The one individual stock that I am holding onto is SBUX.
Thanks Ian. This is a very timely video. I don't own SCHD, but I've been thinking of adding it for many of the reasons you discussed. I can't imagine the past total returns will hold up in the future, but the 3.6% yield is hard to pass up. There are not many dividend stocks that offer this type of yield now.
The only thing I can think of that would make SCHD perfect is if they paid dividends monthly instead of quarterly. I own it in my 401k and in taxable accounts (multiple). I like the low expense ratio and the diversity it brings along with stability. Huge fan of SCHD :)
Hey Ian. Was about to order some new UFC merch online, but realized I actually needed some things. So I went to the discount store and got two pairs of shoes, two pairs of pants, new socks and groceries, all for the same price. That's what a dividend investor does. I used to spend recklessly but now I am on track. Thank you for guiding people like me to financial freedom!
Great to hear the Thug Life OG dividend investor’s thoughts on my favorite investment! Great overview Ian! It’s crazy to think how this low cost ETF with boring blue chip money making companies with low debt & growing dividends got so trendy recently. To me the popularity of this boring set and forget it investment is a positive sign for society! 😁
My FSPHX has crushed SCHD. FSPHX 15% annual rate of return since 1981 every decade just buy it and let me know how you do. FSHCX and FSMEX also will crush SCHD every decade.
@@beepbeepnj2658 Since inception SCHD is up 175% and FSPHX is up 103% according to Google Finance. That’s doesn’t include dividends either. Nice try though.
@@beepbeepnj2658 This is interesting. The charts don't lie. The downside are significantly higher expense ratio, but the rate of return probably offsets that. Are those the only two funds in your portfolio?
Great video. SCHD makes up about 50% of my portfolio. Love it. Also own DGRO, VOO, VTI, ITOT and JEPI. I've got my eye on the international version of this one, SCHY. I sleep better at night investing in ETFs rather than individual stocks.
You have a ton of overlay. VTI, VOO, SCHD , JEPI, and ITOT all have the same stocks in them. Small cap? International? Please look at “ETF overlap”. Good luck!
Another great video Ian! Causes me to ponder simplifying my 39-position, well diversified portfolio (we live off of these in retirement) with starting a SCHD position (20-30%???), using sales of similar yield div stocks that are not in my "Ride-or-die" category that may struggle in the future. Keep up the great work, Ian. Thankful for your insightful input!
Great video! My wife and I both max out our Roth IRA’s with SCHD every year. We both have employer 401k’s as well so not “all” of our invested money is going to SCHD but a decent percentage does. Works well especially in the ROTH and is so easy to get more exposure to companies our 401k’s don’t have access to.
Great video!!! I love SCHD. I'm 29, and my personal account is 100% SCHD! My work 401k is 100% S&P 500. I sleep great at night. I mostly love it because it's exactly what I want and don't have to put in all the time researching and can spend that time doing other things!
I'm waiting for months to buy SCHD with my broker. But sadly I still can't do it. Now it's time to look for a similar divind ETF. Thanks for your valued video's! I really like to watch them. Greetz from the Netherlands.
Expanding into ETFs makes a lot of sense; they make for great foundation stocks because of the diversity. SCHD has had a great run but might lag in the short run because a small handful of large tech stocks are leading the market.
I am with you, I hate selling stocks, it usually feels like a mistake at the time and in the long term it almost always is. While SCHD is not for me, I can see the appeal of the buy it and forget it aspect of an ETF. Great for people who want dividends and don't have the time to research individual companies. Fantastic video as always.
@@ellengraff9328 Sure, I like it better than the other dividend ETFs. As you get more comfortable with dividend stocks, you can start buying individual companies.
I love SCHD, and have a sizable position, as well as individual dividend payers. However, you made this video about a day or two too early, as SCHD just released their new holdings, and it is very diffrent than what you showed!
SCHD certainly became a fund I have been looking into more and more for 2023 given I expect a TON of volatility as interest rates will and rise and stay higher than expected along with higher inflation... Businesses have yet to suffer the worst of it which leads me to the dividend stocks and funds of dividend stocks that will perform better during the year as investors move money to safety positions!
Nice job as always. Yes i did something very similar last year…i own 26 individual stocks that I sell strategic covered calls but added SCHD b/c I didn’t have some of the technology holdings it had. I take an equal weighted approach so none of holdings including my ETFs will be more than 5% of my total portfolio. However, I am retired, and I also own some covered call ETFs for yield.
Ian my youtube friend, great video. Thank you. I'm 31, on a journey like all of us. My dividend portfolio is all etfs. Split between SCHD, DGRO, DIVB, low cost. I enjoy seeing your dividend journey, many of the same holdings. $240k and snowballing. OG 2018 subscriber. Let's keep going! Thug life!
Thank you for sharing and thank you for your very kind words, my friend! NICE WORK on your portfolio - that is amazing, and thank you for being here since 2018. Thug Life, my friend!
Good video Ian. However, You didn't answer the question in the title: "Should you put ALL in SCHD"? I was looking to hear more not on why SCHD makes sense (as you said everyone on youtube talks about it), but more how you combine it with other holdings, what percentage of your portfolio you intend to grow it to, will you sell other positions (perhaps not your die-hard-core) to buy into it more etc etc... Thanks for the video again.
For me, because of my built-in gains and difficult time selling stocks, I do not plan to go "all in" with SCHD. However, I see how that type of strategy could work well for a newer portfolio. For me, I plan to add some new funds into SCHD to built it into a base of sorts over time to hopefully reduce portfolio-wide volatility. I could see it getting as high as 5% shorter-term, but 10% or even 20% long term. For now will start small to test the waters. I could see myself redeploying money from rare possible future sales into SCHD. Wishing you all the greatest!
@@ppcian thanks so much Ian for taking the time to reply to me. Yes, I agree. What you wrote makes sense. I do have a position with SCHD. It isn't my only position, but I do at this time of uncertainty it's not a bad investment compared to individual stocks. Thanks again.
I have been buying Dividend ETF and already own HDV and VYM. In the past 2 years, I have only been buying SCHD because of the principals of how this ETF works and the makeup of the portfolio.
As I get older, and my risk tolerance is a little lower, I love this concept of a base. Thank you for sharing! Wishing you a great one! (Disc: I'm long PEP, ABBV, and PG. I'll probably initiate a position in SCHD)
I really like having SCHD as the main position with a few individual stocks in my RRSP (Canadian investors need to use this to avoid withholding tax on dividends for U.S Stocks). Currently I hold SBUX and VICI since SCHD holds neither. I like SCHD because in my main portfolio I have 18 positions and I don't want multiple large portfolios to track individual holdings.
nice video. the top funds im reading about competitors to schd are:: voo and jepi. what do you think about them? are they alternatives for your investmentstyle?
Thank you for sharing! I have some thoughts on both, but a little too much to type here, a great topic for a future video. Wishing you all the greatest!
A very fair question. No one right answer, but a few notes... 1) I've been in the SWAN (sleep well at night) blue chips for a VERY long time. My gains are built-in, so I don't want to sell to create taxable events. 2) Since my time horizon is so long, I have achieved a high yield-on-cost on my stocks (which can rival the covered call ETFs in some cases). 3) I have a perception that my SWAN stocks are "safer" but that may not be actually true, it's my personal belief. 4) Going forward, I'm not sure the SWAN stocks will be growing quite as quickly, so a covered call ETF may make a ton of sense to add. I'm not a fan of QYLD since it loses equity value over long periods of time, but I like JEPI. And, even though I sold it, I am watching XYLD again. Wishing you a great one!
For more active ones; you can sell puts for 65 strike and get it cheaper. Once u are assigned the shares u can sell calls. For not a lot work you can get better de return than 10% only playing SCHD. The concept is similar in way what Jepi does. Good luck.
I have been watching SCHD for a couple years now, I just sold my VTI and bought SCHD in my Roth IRA. As I do some Roth conversions, I plan to buy more. 😊
Ian, if one decides to have just dividend ETFs, do you think SCHD would be enough? or do you think it still needs to be diversified with some other ETF? Unfortunately could not find another ETF that has similar index focused on quality dividend stocks. Maybe you know one?
I've been buying it as well as JEPI for the last 3 years. Moving out of other option trading ETFs into these. AS I'm in retirement & need the income instead of all the growth.
I own this in my roth schd taxable account and my kids UTMA. Been buying over a year and I think it will be my foundational stock for legacy wealth/financial freedom
Hi Ian, I know this is a bit OT, but in regards to your buy and sell of XYLD, you mentioned that the share price was flat over time, but the dividend seemed to be growing over the years? Is XYLD a dividend growth stock in disguise!? Cheers.
I may have been a little "too harsh" on XYLD. I sold my position because I was unhappy with the underlying equity going down over time (from ~$50 to ~$40). Perhaps I even had a little recency bias thinking that the downward trend would continue. However, it has now stabilized and is holding its own over VERY long periods of time. You have to look at the "all time" chart to get it to look green, but it does hold underlying equity if looked at in that way. XYLD is not on my "bad list" anymore. I'm not sure if I'd add it back, but you never know. It's on my watchlist again, surprisingly. Investing is a fun game, and this is an example of that "bar of soap" analogy. Should I have just "left it alone" vs. trade out and redeploy. Generally-speaking, I've done better when I just leave the portfolio alone, other than adding new capital. Wishing you a great one!
The Peter Schiff portfolio is doing quite well these days and could be on the brink of a big move up--gold, silver, oil, commodities, value stocks (esp. non-US). The Fed can't hike rates much more yet inflation is still above the fed funds rate and nowhere near their 2% target. If they pause (or god forbid pivot) with inflation running hot, the dollar is going to tank and commodities will rip. Dump tech, dump financials, dump bonds.
Great video as always Ian, and I have been consolidating several ancillary positions into SCHD, since they're already in there... but not my PepsiCo shares!! Those will be with me 4-eva!😀
Thanks for sharing, Russ! Those PepsiCo (PEP) shares are about as "forever" as it gets in my personal situation. Gotta love it. Wishing you all the greatest. (Disc: I'm long PEP)
Thank you for the new dividend video update Ian. We need your guidance during this volatile time. It’s nice to listen to someone with a level head and calming voice. Thank you!
I cannot thank you enough for your very kind words. I'm just sharing my journey, and I'm always learning/evolving. Definitely have learned to keep a level head, especially during wacky times like we live in right now! Thanks, again!
So odd to see you suggesting an ETF since in the past you seemed to be somewhat anti-ETF. I think it's a fantastic one stop shop ETF for quality dividend (and dividend growth) stocks. Glad to see you came around (at least a little).
Hi Ian, I have a large dividend portfolio (over 100 positions) pretty well diversified and similar strategy to yourself. Only difference is I sprinkle in some high yielding/higher risk stocks like BDCs and others. I bought SCHD awhile back and like it for what it does (and pays) I think it makes a great addition to anyone's dividend investing portfolio! PS. the dividends are qualified so not so bad!!Love your videos, keep up the good work!!!!
Fun & entertaining video Ian... SCHD happens to be my single largest holding, which is usually neck and neck with long held holdover VDIGX that sits in a separate IRA Rollover account. I've owned it since shortly after inception and expect it'll be a forever hold for me. Would be great to see you in it as well at some point. Cheers my friend...
Always appreciate your comments, my friend! I had no idea that SCHD was so core to your strategy, that is amazing. You are a true early adopter/trend-setter. Wishing you all the greatest, my friend!!!
I'm all in on SCHD in my Brokerage. I love the tax advantage it gives with being qualified dividends. I kicked all of my REIT holdings into my ROTH via back door. You can't beat this fund. Dividends that out pace KO with the growth of SPY. Winner winner imo
Yes, go for it, Ian! Saves a lot of headaches. I am based in the UK and can't invest. The closest I get to US stocks is SnP ETF! Brilliant video as usual!
I have $900 in SBUX and $465 in LOWE. I’m wondering if I should just put those in cash and make 4.8%. A lot less energy, but I like to see how the yield on cost plays out just as an experiment. I also can’t ignore I can get over double the yield on savings, and even if I convert it to SCHD it’s 3.5 to 3.6%. I’ll never get rich off $1600 though, and if I do I’ll be 100.
I like $SCHD. 21% of my wife's IRA account is in $SCHD. But my stock portfolio is still 100% individual stocks. It is fun to pick individual stocks, LOL!
Thanks for the video, Ian. I personally invest in SCHD because with individual stocks I always worry if the industry they are in or the company itself will fall out of favor, have a scandal, or suffer a dividend cut. SCHD let’s me sleep well at night because I don’t have to constantly second guess myself. I know the fund is superbly constructed, so I just sleep easy with my money in there. I know they will take care of any problems that may arise, and far better than I could.
It just reconstituted based on the annual index update. If you checked the holdings last week, check again as they have changed. I don't know if they have done the rebalance yet (they usually wait a few days) so some positions may still be well in excess of 4% but that will be corrected soon (and then natural gains/losses in positions will cause it to never be exactly on target).
2022 I added my first etf in my taxable account, vti. I have a similar mindset with vti. Not gonna sell anything to move over but rather gonna be adding 1/2 or 1/4 of new funds into it. Would like it to be 10-15% of that account in time.
Question to the community: I have a Fidelity brokerage account. Should I add SCHD to the Fidelity brokerage account or open up a Charles Schwab account and hold it there? Thank you 🙏
Ian, silly question for you but I'm curious. You seem to be successful in commercial real estate, you have a success UA-cam business, and I think you mentioned your wife works. Why are you using dividends to pay bills? Are you really spending more than those 3 sources of income? It doesn't make sense to me that someone with 3 sources of income would be in decumulation? My apologies if the question is too personal, I was just curious.
This is a great question and a complex one... First, my wife no longer works, she is a full-time mom, so our income is largely 1) my job, 2) dividend stocks, 3) UA-cam (but that's a small amount, this is really a labor of love, not much money is made). In my line of work in commercial real estate, income can be a little lumpy at times. There can be periods where I'm patiently "waiting". When a larger amount comes through, it's typically invested all at once. I don't want to waste it and get it to work in stocks. On a typical month, I will supplement work-related income with some dividend income to help pay bills. 3) Part of this is to get in the practice of spending dividends. If I really tried, I could probably forego using the dividends, but they provide a nice cushion. 4) Some of my monthly "bills" are "investing related", so one could argue I'm not really "spending" the dividends as much as reinvesting them, the lines get blurry. 5) I'm at a point in my career, that I would like to use more dividends to pay (increasing) bills related to traveling. Travel can get expensive with inflation and the dividends can help cover expenses that baseline salary typically may not. Wishing you a great one!
Great video Ian. Welcome aboard. SCHD owns no REITs or BDCs so it’s dividends should be all qualified. I selected SCHD because it has a well defined and systematic selection process that focuses on, among other things, dividend history and dividend growth.
You mentioned being diversified, so why not go with VYM instead? VYM has a total of 443 holdings, mostly dividend stocks from the United States that are in the FTSE Custom High Dividend Yield index. The top 10 holdings are 23.48% of the assets.
i kinda balance something like : SCHD 40% / SPLG 20% / JEPQ 5% / (SCHG / XLK / SMH = 35%.) A little tech heavy (but thats the S&P500 for you) / decent enough diversification / ok income / last 10 years about 15% returns annualised.. Relatively low management fees. and/or any mix of above. I like SMH cause everything in the future will need semi conductors - we just dont knnow which semiconductors will win!!
My largest position is VTI & I have 6 individual stocks AAPL, TSLA, NVDA, MSFT, PG & DVN. Before the bank failures I sold XLE, SCHD, HDV for a profit. I may go back in SCHD now that it’s been reconstituted. It seems like a good plan if short term T Bills do not go back up to 5%.
hmm... thinking the same ... I noticed many of the stocks I have carefully researched are the same ones SCHD has and I am wondering why I am working so hard when I could just buy this EFT.
IMPORTANT ANNOUNCEMENTS:
Thanks for watching! If you enjoyed the video, please don't forget to "like" and "subscribe". Please share in the comments below your thoughts about SCHD.
HELPFUL RESOURCES:
Here's my first video the banking crisis: ua-cam.com/video/j1P3j22xK0s/v-deo.html
Here's my second video on the banking crisis: ua-cam.com/video/OEUvAADBnZU/v-deo.html
My number 1 dividend stock for bill-paying power: ua-cam.com/video/s1Q8LXy_x1s/v-deo.html
Here is my video about my favorite Treasury Bond: ua-cam.com/video/eGEAUSRjxlY/v-deo.html
PPC IAN INSTAGRAM:
I'm sharing some great content over on Instagram. Check out my Instagram stories and reels. I'm @ianlopuch: instagram.com/ianlopuch/
CHECK OUT MY PATREON:
I'm sharing exclusive bonus content over on Patreon! I offer two tiers: Backyard Patreon and Corner Patreon.
My Backyard Patrons see my stock trades, each accompanied by a blog post write-up. They also have access to 50 historical Patreon-exclusive videos.
In addition to all Backyard Patron perks, my Corner Patrons also have access to my complete dividend stock portfolio (% allocation to each position) AND my complete bond portfolio (% allocation to each position). They additionally enjoy exclusive portfolio update videos, Corner Patreon virtual meet-ups, an exclusive Discord server, and more.
Head on over to Patreon to join today: www.patreon.com/ppcian
PPC IAN EMAIL LIST:
Join my email list today for helpful updates, and a look at some of my historical dividend stock portfolios: www.ppcian.com/my-complete-dividend-stock-portfolio/
PPC IAN TWITTER:
I'm always sharing fun updates on Twitter.
Here's my dividend investing Twitter: twitter.com/ianlopuch
COOL DIVIDEND INVESTING MERCH:
I offer some really amazing dividend investing merch that is sure to make you look and feel great. Each purchase supports my UA-cam channel: teespring.com/stores/ppcian
Thanks so much, everyone, for your support. I hope you enjoy the video today!
(Disclosure and Disclaimer: Please see video description for disclosures and disclaimers.)
Great video. SCHD is designed to be a core holding in a diversified portfolio, according to their website. I own this fund, and my bet is that it will have a defensive characteristic if we have a recession. Great video.
Dividends got me into investing in the stock market. In my opinion, if you're investing and have income other than dividends, you can live on dividends without selling. That means you can pass this on to your kids to give them a head start in life. I have over $600,000 in my portfolio; A combination like (DVY, VIG, SDY, SCHD & JEPI) because I've bought a lot of dividend stocks before. I am buying more now and will buy more in the future.
Investing in REITs and high-dividend-paying companies long-term is a simple strategy for creating intergenerational wealth. It's surprising that over 98% of billionaires are stock investors, expanding their billion-dollar portfolios. The rich do what the poor fear!
@@IAMBETTERTHANYYOU Unfortunately When it comes to investing, most people seems to be ignorant and nonchalant towards it, when investments should be the best thing anybody can do for themselves. till today my profits in stocks and crypto continue to impact my wealth greatly. Therefore i don't feel any urge to solely depend on my salary or wait for the market to enter a bull run.
When it comes to investing, people should not be ignorant or fearful. If so, you should be an early adopter. With the support of my Financial Advisor, "Theresa Dana Peek, I am heavily invested in stocks and digital currency investments. She has properly managed my investments so far and I have accumulated over $87,000 in the last 6 months.
SCHD is good ETF?
Hi
I sold all my individual stocks and have been investing heavily into SCHD, and it now makes up 33% of my portfolio along with VTI, VUG and SPAXX. I have added REITS to my portfolio because SCHD doesn't have any. It saves me a lot of time having ETFs versus keeping track of all my individual stocks. Now I can just go ride my bike!!!!! 😂
Buddy said SPAXX 😂😂
A lot has changed since that blissful walk on the beach years ago where you talked against investing in dividend ETFs. Welcome to the SCHD family!
Thanks, my friend, for watching since those old school days! A lot has changed in our world since then, that is for sure! (And, I continue to evolve as an investor too, with my risk tolerance going down over time.) Here's the video (for those who have not seen): ua-cam.com/video/_ATtFMeGbQM/v-deo.html I don't own any SCHD yet, but it's almost certain I'll start a position in the coming months/year. (Disc: I plan on starting a position in SCHD)
Thug life investing is always evolving! 🔥
Ah yes, but he also got crazy in 2021 and went into XYLD also. Super support your decision, Ian! Bought my first tranche when 3m took a poo last year and haven't looked back.
@@ppcian you don’t own schd?!
Is schd still a good buy with them being in bankruptcy speculation
I have slowly built up a position of thousands of SCHD shares over the years and have been very happy with both the dividend increases and the capital appreciation. In the future, it may possibly under perform an S&P 500 index, but the dividend yield is better, so SCHD may be particularly good for those who want to eventually draw a generous dividend income in retirerent without selling shares of stock.
Thank you for sharing your real world experience! Very much appreciate it! Wishing you a great one.
Completely agree. A lot of people say go for growth as you're accumulating and then switch to dividends when you are ready to retire- I think that makes sense in a tax sheltered retirement account, but with your investments outside of a retirement account, I would rather invest in something like SCHD that appears likely to at least remain in the ballpark of keeping up with the S&P 500 in growth and has the dividends too. Selling out of 20+ years of growth to switch over to dividend stocks is likely to leave you with one hell of a tax bill, IMHO.
I appreciate your comments and your time spent investing in schd. Do you know if the dividends are qualified for tax purposes? I am asking because i have a taxable account. Best wishes!!
@@baritono81 Connor, yes, SCHD dividends are qualified dividends, so they receive the preferential qualified dividend treatment under the tax code.
@@wombatstriker so what you made money pay the tax and move on .
Gave you the requested "Like". I did like your presentation, the teaser title, and the idea that you went full circle to say, "No" you would not be selling your other positions and going all in on SCHD. I also liked your analysis, an every-person, easy to understand roll-out. Like you, I own and I'm adding to my position in SCHD. I've rearranged my buying schedule to focus on SCHD because of its strong make-up and strong performance. Again, like you, I prefer the fund to buy and sell and create the fund. If at some point I don't like where the fund is going, I just have one holding to be concerned about, not several. Anyway, good content. Cheers
Nice video Ian. I own some JEPI and SCHD as a foundation of my dividend portfolio (mix of cashflow and growth). I DCA regularly on them
Excited to finally hear you talking about this one. I’ve been moving towards SCHD recently, even selling out of a handful of individual stocks to buy more SCHD. I’m 27 with about 136k invested (mostly individual dividend growth stocks) and have been watching your channel since I first started investing.
I’d built up my SCHD position to almost 30k, but recently sold about 10k to put into several financials (BAC, SCHW, AXP, PRU, MS, FITB) to try and take advantage of the recent sell off. Time will tell if that was a good move haha.
SCHD is my core position at about 22% of my taxable account. I like the diversification and the investment criteria of the fund. I add to it every week. Similar to what you mentioned, I like the automated approach to the investment process. Provides some peace of mind. It has a nice yield and dividend growth rate to provide future me (and my wife) the income to pay our bills when we retire. Thanks for the video!
You have taught me a LOT with your UA-cam videos -- the most important being CAGR (compound average growth rate) of growing dividends, and the principle of compound interest more generally. I have become worn out studying individual stocks, and recently ran across SCHD -- an ETF focused on much of what I have learned from you, with the same perspective about compounding dividends over years. With no more energy to spend hours on individual stocks, what I decided to do was sell most of my single stocks and put most of my capital into an ETF or ETFs -- ie. like SCHD which follows your perspectives on dividend CAGRs over 5, 10, 15+ years. After being paid significant dividends quarterly, from now on I will spend a little time each quarter with a "dividend calculator" to see how much my compounding of SCHD dividends to date will grow over 10, 15, 20+ years -- to encourage me to stay the course, to add more capital each week, month, and quarterly to an ETF like SCHD. It was affirming to watch this UA-cam video from you about SCHD, affirming the conclusions that I had already come to --- that I needed more diversity, and if I am worn out researching single stocks, then I should deploy capital into ETFs like SCHD. Thank you for all of your videos which I will continue watching! Perhaps it is ok to invest more broadly into an ETF that values the same qualities that are valued in single stocks. The one individual stock that I am holding onto is SBUX.
Thanks Ian. This is a very timely video. I don't own SCHD, but I've been thinking of adding it for many of the reasons you discussed. I can't imagine the past total returns will hold up in the future, but the 3.6% yield is hard to pass up. There are not many dividend stocks that offer this type of yield now.
The only thing I can think of that would make SCHD perfect is if they paid dividends monthly instead of quarterly. I own it in my 401k and in taxable accounts (multiple). I like the low expense ratio and the diversity it brings along with stability. Huge fan of SCHD :)
Great point! Monthly dividends would be amazing! Wishing you a great one!!!
Think if the stocks paid dividends in intervening months, what do they do with the cash in the interim.
It really is as simple as dividing by 3 and you have your monthly income.
Hey Ian. Was about to order some new UFC merch online, but realized I actually needed some things. So I went to the discount store and got two pairs of shoes, two pairs of pants, new socks and groceries, all for the same price. That's what a dividend investor does. I used to spend recklessly but now I am on track. Thank you for guiding people like me to financial freedom!
Great to hear the Thug Life OG dividend investor’s thoughts on my favorite investment! Great overview Ian! It’s crazy to think how this low cost ETF with boring blue chip money making companies with low debt & growing dividends got so trendy recently. To me the popularity of this boring set and forget it investment is a positive sign for society! 😁
Great point! Our society has a bright future with the boring, quality stocks gaining in popularity!!!
Great video Ian! I’m a big fan of SCHD
Thanks, my friend! Wishing you a great one!!!
Excluding real estate, SCHD makes up 22% of my portfolio. When looking at total return it's very tough to beat. Great topic Ian!
Thanks for sharing that, Tim. Appreciate it, and wishing you all the best!
Buy today!!, it’s heavily discounted.
My FSPHX has crushed SCHD. FSPHX 15% annual rate of return since 1981 every decade just buy it and let me know how you do. FSHCX and FSMEX also will crush SCHD every decade.
@@beepbeepnj2658 Since inception SCHD is up 175% and FSPHX is up 103% according to Google Finance. That’s doesn’t include dividends either. Nice try though.
@@beepbeepnj2658 This is interesting. The charts don't lie. The downside are significantly higher expense ratio, but the rate of return probably offsets that. Are those the only two funds in your portfolio?
Great video. SCHD makes up about 50% of my portfolio. Love it. Also own DGRO, VOO, VTI, ITOT and JEPI. I've got my eye on the international version of this one, SCHY. I sleep better at night investing in ETFs rather than individual stocks.
You have a ton of overlay. VTI, VOO, SCHD , JEPI, and ITOT all have the same stocks in them. Small cap? International? Please look at “ETF overlap”.
Good luck!
Huge fan of SCHD! Thanks for the vid.
Another great video Ian! Causes me to ponder simplifying my 39-position, well diversified portfolio (we live off of these in retirement) with starting a SCHD position (20-30%???), using sales of similar yield div stocks that are not in my "Ride-or-die" category that may struggle in the future. Keep up the great work, Ian. Thankful for your insightful input!
Thanks for your kind words and thanks for sharing!
Great video!
My wife and I both max out our Roth IRA’s with SCHD every year. We both have employer 401k’s as well so not “all” of our invested money is going to SCHD but a decent percentage does.
Works well especially in the ROTH and is so easy to get more exposure to companies our 401k’s don’t have access to.
I have owned SCHD for a few years. I am down only -6.94%. I'm sure it'll go into the positive terrstory when the market's recovery.
😢
Great video!!! I love SCHD. I'm 29, and my personal account is 100% SCHD! My work 401k is 100% S&P 500. I sleep great at night. I mostly love it because it's exactly what I want and don't have to put in all the time researching and can spend that time doing other things!
Right on! Thank you for sharing!
I'm waiting for months to buy SCHD with my broker. But sadly I still can't do it. Now it's time to look for a similar divind ETF. Thanks for your valued video's! I really like to watch them. Greetz from the Netherlands.
seems interesting, thank you for the information and input, I'll look into it the coming days
Expanding into ETFs makes a lot of sense; they make for great foundation stocks because of the diversity. SCHD has had a great run but might lag in the short run because a small handful of large tech stocks are leading the market.
I am with you, I hate selling stocks, it usually feels like a mistake at the time and in the long term it almost always is. While SCHD is not for me, I can see the appeal of the buy it and forget it aspect of an ETF. Great for people who want dividends and don't have the time to research individual companies. Fantastic video as always.
Well said.
Always appreciate your thoughts, my friend! Selling stocks is always the worst feeling, for sure. Wishing you all the greatest!
If some one is 5yrs from retirement, is Schd a good etf to start a position in, or go into something eles?.......Asking for a friend 😮
@@ellengraff9328 Sure, I like it better than the other dividend ETFs. As you get more comfortable with dividend stocks, you can start buying individual companies.
I love SCHD, and have a sizable position, as well as individual dividend payers. However, you made this video about a day or two too early, as SCHD just released their new holdings, and it is very diffrent than what you showed!
SCHD certainly became a fund I have been looking into more and more for 2023 given I expect a TON of volatility as interest rates will and rise and stay higher than expected along with higher inflation... Businesses have yet to suffer the worst of it which leads me to the dividend stocks and funds of dividend stocks that will perform better during the year as investors move money to safety positions!
Nice job as always. Yes i did something very similar last year…i own 26 individual stocks that I sell strategic covered calls but added SCHD b/c I didn’t have some of the technology holdings it had. I take an equal weighted approach so none of holdings including my ETFs will be more than 5% of my total portfolio. However, I am retired, and I also own some covered call ETFs for yield.
I appreciate your comments and real-world insights. Wishing you all the greatest!
Ian my youtube friend, great video. Thank you. I'm 31, on a journey like all of us. My dividend portfolio is all etfs. Split between SCHD, DGRO, DIVB, low cost. I enjoy seeing your dividend journey, many of the same holdings. $240k and snowballing. OG 2018 subscriber. Let's keep going! Thug life!
Thank you for sharing and thank you for your very kind words, my friend! NICE WORK on your portfolio - that is amazing, and thank you for being here since 2018. Thug Life, my friend!
Good video Ian. However, You didn't answer the question in the title: "Should you put ALL in SCHD"? I was looking to hear more not on why SCHD makes sense (as you said everyone on youtube talks about it), but more how you combine it with other holdings, what percentage of your portfolio you intend to grow it to, will you sell other positions (perhaps not your die-hard-core) to buy into it more etc etc... Thanks for the video again.
For me, because of my built-in gains and difficult time selling stocks, I do not plan to go "all in" with SCHD. However, I see how that type of strategy could work well for a newer portfolio. For me, I plan to add some new funds into SCHD to built it into a base of sorts over time to hopefully reduce portfolio-wide volatility. I could see it getting as high as 5% shorter-term, but 10% or even 20% long term. For now will start small to test the waters. I could see myself redeploying money from rare possible future sales into SCHD. Wishing you all the greatest!
@@ppcian thanks so much Ian for taking the time to reply to me. Yes, I agree. What you wrote makes sense. I do have a position with SCHD. It isn't my only position, but I do at this time of uncertainty it's not a bad investment compared to individual stocks. Thanks again.
Hi Ian i personally Love thise ETF I Have it In My Roth For a Few Yrs Now With a Handfull Of Stocks.Its a Core Holding for me Sleep easy at Night.
Thank You Ian!! Best of luck and happy investing sir
I have been buying Dividend ETF and already own HDV and VYM. In the past 2 years, I have only been buying SCHD because of the principals of how this ETF works and the makeup of the portfolio.
Well done. You clearly are one smart man. Keep up the good content. Thank you.
YES! IAN, I love SCHD! I use it as base. I love it! ,PEP, ABBV, P&G and SCHD are my top. When top stocks are high, I buy SCHD. I love it
As I get older, and my risk tolerance is a little lower, I love this concept of a base. Thank you for sharing! Wishing you a great one! (Disc: I'm long PEP, ABBV, and PG. I'll probably initiate a position in SCHD)
Greatest decision was selling 40 positions and going all in on VOO. Such a time saver
I really like having SCHD as the main position with a few individual stocks in my RRSP (Canadian investors need to use this to avoid withholding tax on dividends for U.S Stocks). Currently I hold SBUX and VICI since SCHD holds neither. I like SCHD because in my main portfolio I have 18 positions and I don't want multiple large portfolios to track individual holdings.
Thank you for sharing!!!
Agreed …schd and Dgrw perform almost identical….higher dividends with schd but Dgrw is superb also
Thanks for sharing!
I love SCHD. I have 2015 shares and add every week. 25% of my new money goes into it
Right on! Thank you for sharing!
ScHD is one of the best dividend ETFs out their. I also like DGRW for monthly dividends. CDC and CDL also pays monthly.
nice video. the top funds im reading about competitors to schd are:: voo and jepi. what do you think about them? are they alternatives for your investmentstyle?
Thank you for sharing! I have some thoughts on both, but a little too much to type here, a great topic for a future video. Wishing you all the greatest!
Schd is all you need…dividend has increased every single year..dividends qualified ..is perfect
Thanks for sharing!
Hey Ian, if your goal is always income, why don’t you invest in #QYLD and/ or #JEPI?
A very fair question. No one right answer, but a few notes... 1) I've been in the SWAN (sleep well at night) blue chips for a VERY long time. My gains are built-in, so I don't want to sell to create taxable events. 2) Since my time horizon is so long, I have achieved a high yield-on-cost on my stocks (which can rival the covered call ETFs in some cases). 3) I have a perception that my SWAN stocks are "safer" but that may not be actually true, it's my personal belief. 4) Going forward, I'm not sure the SWAN stocks will be growing quite as quickly, so a covered call ETF may make a ton of sense to add. I'm not a fan of QYLD since it loses equity value over long periods of time, but I like JEPI. And, even though I sold it, I am watching XYLD again. Wishing you a great one!
@@ppcian Fair enough, I like your very detailed answer.
For more active ones; you can sell puts for 65 strike and get it cheaper. Once u are assigned the shares u can sell calls. For not a lot work you can get better de return than 10% only playing SCHD.
The concept is similar in way what Jepi does. Good luck.
I have been watching SCHD for a couple years now, I just sold my VTI and bought SCHD in my Roth IRA. As I do some Roth conversions, I plan to buy more. 😊
Nice! Thanks for sharing!
Ian, if one decides to have just dividend ETFs, do you think SCHD would be enough? or do you think it still needs to be diversified with some other ETF?
Unfortunately could not find another ETF that has similar index focused on quality dividend stocks. Maybe you know one?
I've been buying it as well as JEPI for the last 3 years. Moving out of other option trading ETFs into these. AS I'm in retirement & need the income instead of all the growth.
Thanks for sharing!!! Wishing you all the greatest!
I own this in my roth schd taxable account and my kids UTMA. Been buying over a year and I think it will be my foundational stock for legacy wealth/financial freedom
Meant to put HSA but typed schd lol
Nice! Thanks for sharing!
Hi Ian . What do you think about owning DGRO over SCHD ?
Awesome video, Ian! It will be great to have you in the SCHD family in the coming months and years when you buy it.
Thanks for your very kind words! I appreciate it!
Hi Ian, I know this is a bit OT, but in regards to your buy and sell of XYLD, you mentioned that the share price was flat over time, but the dividend seemed to be growing over the years? Is XYLD a dividend growth stock in disguise!? Cheers.
I may have been a little "too harsh" on XYLD. I sold my position because I was unhappy with the underlying equity going down over time (from ~$50 to ~$40). Perhaps I even had a little recency bias thinking that the downward trend would continue. However, it has now stabilized and is holding its own over VERY long periods of time. You have to look at the "all time" chart to get it to look green, but it does hold underlying equity if looked at in that way. XYLD is not on my "bad list" anymore. I'm not sure if I'd add it back, but you never know. It's on my watchlist again, surprisingly. Investing is a fun game, and this is an example of that "bar of soap" analogy. Should I have just "left it alone" vs. trade out and redeploy. Generally-speaking, I've done better when I just leave the portfolio alone, other than adding new capital. Wishing you a great one!
@@ppcian Thanks for the reply Ian!
The Peter Schiff portfolio is doing quite well these days and could be on the brink of a big move up--gold, silver, oil, commodities, value stocks (esp. non-US). The Fed can't hike rates much more yet inflation is still above the fed funds rate and nowhere near their 2% target. If they pause (or god forbid pivot) with inflation running hot, the dollar is going to tank and commodities will rip. Dump tech, dump financials, dump bonds.
Awesome video, thanks for your complete overview. First time watching your video
Thank you! I appreciate your kind words!
Great video as always Ian, and I have been consolidating several ancillary positions into SCHD, since they're already in there... but not my PepsiCo shares!! Those will be with me 4-eva!😀
Thanks for sharing, Russ! Those PepsiCo (PEP) shares are about as "forever" as it gets in my personal situation. Gotta love it. Wishing you all the greatest. (Disc: I'm long PEP)
Unfortunately, we do not have an equivalent in the UK. Have a great week Ian, all the very best to you and your family. T🍺.
Always appreciate your comments, T! Wishing you an amazing week!
Ian, consider a little diversification, such as schd with dgrw. I own both.
Thanks for sharing!
Thank you for the new dividend video update Ian. We need your guidance during this volatile time. It’s nice to listen to someone with a level head and calming voice. Thank you!
I cannot thank you enough for your very kind words. I'm just sharing my journey, and I'm always learning/evolving. Definitely have learned to keep a level head, especially during wacky times like we live in right now! Thanks, again!
Have you checked out MORT? You can take advantage of those high yield mortgage REITS while distributing risk.
Great analysis Ian ! I purchased some shares on Monday.
Always appreciate your comments, my friend! Wishing you all the greatest!!!
Thanks Ian ! May you and your family have a blessed, holy and peaceful Easter Season ! May God bless you all ! Take care and be well ! Mike
So odd to see you suggesting an ETF since in the past you seemed to be somewhat anti-ETF. I think it's a fantastic one stop shop ETF for quality dividend (and dividend growth) stocks. Glad to see you came around (at least a little).
I'm always evolving and learning! Wishing you a great one!
Hi Ian, I have a large dividend portfolio (over 100 positions) pretty well diversified and similar strategy to yourself. Only difference is I sprinkle in some high yielding/higher risk stocks like BDCs and others. I bought SCHD awhile back and like it for what it does (and pays) I think it makes a great addition to anyone's dividend investing portfolio! PS. the dividends are qualified so not so bad!!Love your videos, keep up the good work!!!!
Fun & entertaining video Ian... SCHD happens to be my single largest holding, which is usually neck and neck with long held holdover VDIGX that sits in a separate IRA Rollover account. I've owned it since shortly after inception and expect it'll be a forever hold for me. Would be great to see you in it as well at some point. Cheers my friend...
Always appreciate your comments, my friend! I had no idea that SCHD was so core to your strategy, that is amazing. You are a true early adopter/trend-setter. Wishing you all the greatest, my friend!!!
THANK YOU VERY MUCH!!!, The Video I was Looking for! Great video
I really appreciate your kind words! Thank you!
Great quick shot video thank you! I am long SCHD
Thanks for your kind words!!!
DVY -- this is a favorite of mine in this category...
Schd out performs it by a mile
Thank you for sharing!!!
Hi, can you direct me to the video where you shared the dividend stock you pay bills with?
What do you think of aap ian (auto parts)
I'm all in on SCHD in my Brokerage. I love the tax advantage it gives with being qualified dividends. I kicked all of my REIT holdings into my ROTH via back door. You can't beat this fund. Dividends that out pace KO with the growth of SPY. Winner winner imo
Yes, go for it, Ian! Saves a lot of headaches. I am based in the UK and can't invest. The closest I get to US stocks is SnP ETF! Brilliant video as usual!
Thank you for your very kind words!
I am deploying about $5,000 into SCHD throughout the course of the year. Every week I add a little more. Great vid Ian.
Right on! Thanks for sharing, my friend, and thanks for your kind words!
Nice timing, I actually just added this one to my IRA this morning!
Right on! Thank you for sharing!
I have $900 in SBUX and $465 in LOWE. I’m wondering if I should just put those in cash and make 4.8%. A lot less energy, but I like to see how the yield on cost plays out just as an experiment. I also can’t ignore I can get over double the yield on savings, and even if I convert it to SCHD it’s 3.5 to 3.6%. I’ll never get rich off $1600 though, and if I do I’ll be 100.
I like $SCHD. 21% of my wife's IRA account is in $SCHD. But my stock portfolio is still 100% individual stocks. It is fun to pick individual stocks, LOL!
Great point on the fun in picking individual stocks. That "fun" component is meaningful to me, as well. Wishing you a great one!
So, if a person had a hypothetical 40K to drop on SCHD what would a good entry point be? Buying and holding long term...not sure how to value ETFs.
Thanks for the video, Ian. I personally invest in SCHD because with individual stocks I always worry if the industry they are in or the company itself will fall out of favor, have a scandal, or suffer a dividend cut. SCHD let’s me sleep well at night because I don’t have to constantly second guess myself. I know the fund is superbly constructed, so I just sleep easy with my money in there. I know they will take care of any problems that may arise, and far better than I could.
Great insights! I love the concept of mitigating individual stock risk with the diversification as well. Wishing you all the greatest.
@@ppcian Thank you. You too!
Ian a good utility to buy is Allete
What about the reconstitution of SCHD recently? Some stocks were removed & others added.
It just reconstituted based on the annual index update. If you checked the holdings last week, check again as they have changed. I don't know if they have done the rebalance yet (they usually wait a few days) so some positions may still be well in excess of 4% but that will be corrected soon (and then natural gains/losses in positions will cause it to never be exactly on target).
Thanks for sharing! I'll make sure to check. Wishing you a great one!
2022 I added my first etf in my taxable account, vti. I have a similar mindset with vti. Not gonna sell anything to move over but rather gonna be adding 1/2 or 1/4 of new funds into it. Would like it to be 10-15% of that account in time.
Thank you so much for sharing, my friend!
Question to the community:
I have a Fidelity brokerage account.
Should I add SCHD to the Fidelity brokerage account or open up a Charles Schwab account and hold it there?
Thank you 🙏
Just buy it through your Fidelity account.
No fee at fidelity to buy SCHD for you portfolio
Great video!
I have SCHD in my portfolio and I like it!
Thanks for your kind words and thanks for sharing!
It's a way for me to catch the rest of the dividend market, as I'm focused on some core stocks atm.
Ian, silly question for you but I'm curious. You seem to be successful in commercial real estate, you have a success UA-cam business, and I think you mentioned your wife works. Why are you using dividends to pay bills? Are you really spending more than those 3 sources of income? It doesn't make sense to me that someone with 3 sources of income would be in decumulation? My apologies if the question is too personal, I was just curious.
This is a great question and a complex one... First, my wife no longer works, she is a full-time mom, so our income is largely 1) my job, 2) dividend stocks, 3) UA-cam (but that's a small amount, this is really a labor of love, not much money is made). In my line of work in commercial real estate, income can be a little lumpy at times. There can be periods where I'm patiently "waiting". When a larger amount comes through, it's typically invested all at once. I don't want to waste it and get it to work in stocks. On a typical month, I will supplement work-related income with some dividend income to help pay bills. 3) Part of this is to get in the practice of spending dividends. If I really tried, I could probably forego using the dividends, but they provide a nice cushion. 4) Some of my monthly "bills" are "investing related", so one could argue I'm not really "spending" the dividends as much as reinvesting them, the lines get blurry. 5) I'm at a point in my career, that I would like to use more dividends to pay (increasing) bills related to traveling. Travel can get expensive with inflation and the dividends can help cover expenses that baseline salary typically may not. Wishing you a great one!
Ian, can you try and do a video about Fidfolios Solo?. Automatec basket investing?. Thanks for consideration.
Than you for the video suggestion!
Great video Ian. Welcome aboard. SCHD owns no REITs or BDCs so it’s dividends should be all qualified. I selected SCHD because it has a well defined and systematic selection process that focuses on, among other things, dividend history and dividend growth.
Appreciate your comment! Thanks for sharing!!!
Assuming you prefer schd over vym?
You mentioned being diversified, so why not go with VYM instead? VYM has a total of 443 holdings, mostly dividend stocks from the United States that are in the FTSE Custom High Dividend Yield index. The top 10 holdings are 23.48% of the assets.
I like how you inserted “thug life” in there for Altria 😂
Thank you!!! (Disc: I'm long MO)
Realistically, what percentage of SCHD would one want in their portfolio with 20 years left to retire?
Great video, thanks Ian!
Really appreciate it, Jason! Thanks for being here since the early days!
SCHD/DGRO with a sprinkling of JEPI/JEPQ.
Thank you for sharing!
I'm surprised there were so many in the fund you didn't have. could be a useful tool. so many ways to invest!
I was surprised too! Very surprised in a good way.
i went all SCHD after learning how to invest.. makes life easier.. once the div growth drops below 10% on 5 yr average i'll do more income plays.
Right on! Thank you for sharing!
Yes. Qualified dividens are taxes as capital gains not income. So it’s fine placing it into a taxable account. I think probably best into a roth ira.
i kinda balance something like : SCHD 40% / SPLG 20% / JEPQ 5% / (SCHG / XLK / SMH = 35%.) A little tech heavy (but thats the S&P500 for you) / decent enough diversification / ok income / last 10 years about 15% returns annualised.. Relatively low management fees. and/or any mix of above. I like SMH cause everything in the future will need semi conductors - we just dont knnow which semiconductors will win!!
My largest position is VTI & I have 6 individual stocks AAPL, TSLA, NVDA, MSFT, PG & DVN. Before the bank failures I sold XLE, SCHD, HDV for a profit. I may go back in SCHD now that it’s been reconstituted. It seems like a good plan if short term T Bills do not go back up to 5%.
hmm... thinking the same ... I noticed many of the stocks I have carefully researched are the same ones SCHD has and I am wondering why I am working so hard when I could just buy this EFT.
Thanks for sharing!
I invest weekly into SCHD, great ETF.
Nice! Thank you for sharing!
ive been adding a ton of schd lately. still maybe only 1% of my port. Def worth for the average investor
Thank you for sharing!