SCHD has underperformed the past few years because of fixed income and money market funds offering 5%. When yields go down SCHD will perform better again. Buy and hold
You’ve calculated the yearly amount there? SCHD pays a dividend every 3 months so if 247.23 is the quarterly amount it would mean that he has closer to 95000 in SCHD?
@@scottwalker4619no. $247 quarterly is at ~$23k invested as the div amount per share this quarter was 82 cents. If he had 95k worth of SCHD the dividend would have been closer to $1006 for the quarter.
If someone is retired and has a substantial nest egg after investing in VOO, would it be safer to transfer the entire nest egg into SCHD and start living off the dividends, or would it be better to just leave it in VOO. Looking for income with principal protection and not so much the maximum return at this point?
Matters your goals. VOO gives more growth, but you’ll have to sell shares to collect the profit as the dividend is lower. SCHD you get higher dividends + CAGR, so you can go for full dividend profit later on instead of selling.
Got SCHD and SCHX paired long term. Around a 70/30 ratio since I want more growth with SCHX. A few years ago I was focused on mostly dividends with Individual stocks, but have decided to change my approach and go with more of a dividend+ growth hybrid approach. Best of both worlds and the 2 funds don't really overlap.
I opened up a schwab account in January and have to date 40 shares of SCHD. The dividend bought me about a half share. I have set the goal of 6 shares per month for now would like to up that until I have 500 shares. 500 shares is my 4 year goal. At that point will add another fund to my account ( i have investments in my 401K, spouse has a 403B and I have a few other funds in schwab but there SCHD is my focus for now..
So refreshing to see such a positive perspective on SCHD,,just watched a video by "Viktoriya media" channel who craps all over it and recommends chucking it in the trash can for something else...
Its interesting that the SCHD, is now approaching the Australian S&P200 in terms of dividends (minus the juicy Australian franking credits). I am still working out tax implications on added it as a satellite, to my portfolio. As their is $ conversions, tax treaties etc etc I agree with others, i think it makes a better bond replacement than a core. As you get some growth and dividends so a higher return. Again, i would be curious if you did a dividend video on Americans investing into the A200 or VAS etfs.
SCHD or a dividend ETF/Portfolio is a great way to balance out your portfolio. You have to have a foundational ETF like VOO and VTI and pair with growth ones like XLK, QQQ, and VGT. The reason is so that the dividend portfolio can be your main source of income and will be steady in market downturns, so you never have to sell your foundational or growth ETFs at a loss! 💰
Liked, subscribed and liking the way you present. Today was my first $11/day deposit on Webull thanks to you. So, at the end of the year you pay taxes on that $250 dividend even with the immediate reinvesting?
Yes, you're taxed regardless on your dividends even if they get reinvested. Technically you've made that money regardless.Taxed at short term capital gain (your regular W2 income bracket)rate if you've held the shares less than 1 year. If held more than 1 year the dividends are taxed at long term capital gain rates (better/less) which is 0%, 15%, and 20% depending on your income. 0% if making under ~44k/year then the other for higher income brackets. Same with selling any stock you've held for less or more than a year. The idea is you get a better tax rate if you hold onto any gains for a year or more. Edit to add: There's ZERO tax on dividends if you hold stocks/ETFs in a IRA, Roth IRA, or Health Savings Account. Those gains grow tax free. The idea is to give incentive to save for retirement.
HYSA you only get the interest income, and it is taxed as ordinary income. SCHD has historically a total return similar to S&P500, and the dividends are qualified. Different strokes...
SCHD is my bond allocation in my portfolio 40% The other 60% is SCHG and VOO When the market drops 50% you’ll be glad you bought SCHD 2025 is going to be a tough year in my opinion nice job
The exchange adjusts the previous close price down by the amount of the dividend. Standard practice. It's just an artificial accounting construct. (No other expense or income payment causes the exchange to automatically adjusts the price.)
Why are people guessing the number of shares? He may have bought some at $80/share and some at $71/share. There are more variables you have no idea about.
295 shares.... I received $2500. I buy more shares every month with a goal to have close to 4000 shares in the next 3-4 years which would provide a monthly income for my wife when I'm gone. oh and i drip
Considering selling some of my 3020 shares in $SCHD near its 52-week high with a cost basis of $42.19 to lock in profits. I intend to retain some shares while reallocating funds to ETFs or stocks showing stronger performance. Thoughts?
At the moment SCHD makes up about 7.5% of my portfolio. Im in mid 20s so ill increase it to 10%-12.5% once I'm 30. As far as the rest of my portfolio, it includes 60% VTI, 20% QQQM, 12.5% SMH
@@wilinium So a lower tax rate. do you have to do it right away? Do you have to buy SCHD with it? Or is it Long Term automatically once you get SCHD dividens? Thanks
@@prophetseven728 you can do what you want with the dividend. That has no bearing on how it will be taxed. Consult your accountant. In general "a dividend is considered qualified if a shareholder has owned a stock for at least 61 days during the 121-day period that begins 60 days before the ex-dividend date. The ex-dividend date is the first day that the stock trades without its dividend, and it's one market day before the dividend's record date. "
Dividends aren't that great. You can look at them as forced taxable event. Better to hold VOO/SPY and sell when you need money. You will need to pay tax on these dividends (unless SCHD is held in tax deferred). Historical return on VOO/SPY is better too.
SCHG is done as a top ETF especially when it cut all the great holdings it had and it’s too high of a price when you could just put your money into something like JEPI or JEPQ and get a huge dividend payment and every month
Investing in only VOO, is as dumb as investing in only the SCHD. And funny enough even people who like the SCHD don't recommend only having that in the portfolio. You miss out on so many gains.
Watch this video next on why you should Stop buying ETFs until you check these 4 critical steps: ua-cam.com/video/sbbwzbHYJkQ/v-deo.html
is my yt broken or is this just the link of this video?
I just got to my first share of SCHD only got 80 cents but I’m excited to build it up and get that snowball!
🎉
That's how you start -- keep going!
Money is Money! Compound interest works on all dollar amounts! :)
Yup. Me too. Can't wait
Your ETF is now down 80 cents.. it's not extra income it's not extra money😊
SCHD has underperformed the past few years because of fixed income and money market funds offering 5%. When yields go down SCHD will perform better again. Buy and hold
Today was a good day for my SCHD DRIP. I've got about 620 shares so a nice payoff.
Excellent!
To get the dividend of $247.23, you would need 300 stocks at $77.4299, worth $23,228.94.
Very cheap😂😂
Is tax considered in the computation?
Wow that’s not bad
You’ve calculated the yearly amount there? SCHD pays a dividend every 3 months so if 247.23 is the quarterly amount it would mean that he has closer to 95000 in SCHD?
@@scottwalker4619no. $247 quarterly is at ~$23k invested as the div amount per share this quarter was 82 cents. If he had 95k worth of SCHD the dividend would have been closer to $1006 for the quarter.
Total returns last 10 years this includes bull and bear cycles and low and high rates
VOO: 12.82%
SCHD: 10.80%
Does this factor in a DRIP on SCHD and VOO?
@@brianharris4144 yes everything drip or no drip. Total returns are less on SCHD
@@brianharris4144 yes!
@@brianharris4144doubt it
@@brianharris4144 Yes that's with DRIP factored in, SCHD is overrated.
$491 boys it felt good, keep the good fight. I'm reinvesting that payment right into VOO.
I can't wait to add more SCHD to my portfolio, nice video... 🎯
My biggest holding SCHD. I don’t know if this is a good thing or bad thing. It hasn’t done much lately. I’m retired and that’s why I own it.
If someone is retired and has a substantial nest egg after investing in VOO, would it be safer to transfer the entire nest egg into SCHD and start living off the dividends, or would it be better to just leave it in VOO. Looking for income with principal protection and not so much the maximum return at this point?
SCHD is the bond replacement in my portfolio
Bonds don’t go down as much as SCHD..
Total returns average last 10 years this includes bull and bear cycles and low and high rates
VOO: 12.82%
SCHD: 10.80%
Schd is a decent hedge but your moneys better off in Voo or any growth etf if you’ve got a long term outlook.
Matters your goals. VOO gives more growth, but you’ll have to sell shares to collect the profit as the dividend is lower. SCHD you get higher dividends + CAGR, so you can go for full dividend profit later on instead of selling.
Got SCHD and SCHX paired long term. Around a 70/30 ratio since I want more growth with SCHX. A few years ago I was focused on mostly dividends with Individual stocks, but have decided to change my approach and go with more of a dividend+ growth hybrid approach. Best of both worlds and the 2 funds don't really overlap.
I opened up a schwab account in January and have to date 40 shares of SCHD. The dividend bought me about a half share. I have set the goal of 6 shares per month for now would like to up that until I have 500 shares. 500 shares is my 4 year goal. At that point will add another fund to my account ( i have investments in my 401K, spouse has a 403B and I have a few other funds in schwab but there SCHD is my focus for now..
AND TO YOUR 242.. im pulling 2.24 BLESS YOU!! Love the content
Thanks for this video well explained. Helps me make a decision on what on investing in high dividend stocks.
Approximately 300 shares
Bob , do you like SPLG , and SCHB ?
Ive been loading up its basically voo and vti around 64-65$ per share
Total returns counts NAV and dividends average last 10 years this includes bull and bear cycles and low and high rates
VOO: 12.82%
SCHD: 10.80%
So refreshing to see such a positive perspective on SCHD,,just watched a video by "Viktoriya media" channel who craps all over it and recommends chucking it in the trash can for something else...
it is crap
@@JBworksout87 then why are you here watching and wasting your time on a video about SCHD then?
@JBworksout87 not understanding its power in the right mix, that's your mistake.
OP That channel you mention is probably the worst financial channel i’ve watched.
Its interesting that the SCHD, is now approaching the Australian S&P200 in terms of dividends (minus the juicy Australian franking credits).
I am still working out tax implications on added it as a satellite, to my portfolio. As their is $ conversions, tax treaties etc etc
I agree with others, i think it makes a better bond replacement than a core. As you get some growth and dividends so a higher return.
Again, i would be curious if you did a dividend video on Americans investing into the A200 or VAS etfs.
Thanks Big Bob
Techs just taking the current lead, but SCHD is always stable.
Love your voice as explain things
SCHD or a dividend ETF/Portfolio is a great way to balance out your portfolio. You have to have a foundational ETF like VOO and VTI and pair with growth ones like XLK, QQQ, and VGT. The reason is so that the dividend portfolio can be your main source of income and will be steady in market downturns, so you never have to sell your foundational or growth ETFs at a loss! 💰
Which is better 40 40 20 or dollar cost avg.
Liked, subscribed and liking the way you present. Today was my first $11/day deposit on Webull thanks to you. So, at the end of the year you pay taxes on that $250 dividend even with the immediate reinvesting?
Yes, you're taxed regardless on your dividends even if they get reinvested. Technically you've made that money regardless.Taxed at short term capital gain (your regular W2 income bracket)rate if you've held the shares less than 1 year. If held more than 1 year the dividends are taxed at long term capital gain rates (better/less) which is 0%, 15%, and 20% depending on your income. 0% if making under ~44k/year then the other for higher income brackets. Same with selling any stock you've held for less or more than a year. The idea is you get a better tax rate if you hold onto any gains for a year or more.
Edit to add: There's ZERO tax on dividends if you hold stocks/ETFs in a IRA, Roth IRA, or Health Savings Account. Those gains grow tax free. The idea is to give incentive to save for retirement.
Bob, what are you thoughts on SCHY?
Thoughts on DGRO?
What would be the most similar etf available for Europeans?
I prefer growth over dividends. SCHG grew 24% YTD while SCHD only 0.94% YTD. If you really want dividends, then put your money in a HYSA.
HYSA you only get the interest income, and it is taxed as ordinary income. SCHD has historically a total return similar to S&P500, and the dividends are qualified. Different strokes...
Why not just have SCHG and SCHD
That’s comparing apples to oranges.
Why buy SCHG? Just buy Apple, Microsoft, Google, Amazon, NVDA, & META... that makes up almost 60% of SCHG...
Just got 3.6 shares ready to keep this one in the tank and DCA. 🎉
SCHD is my bond allocation in my portfolio 40%
The other 60% is SCHG and VOO
When the market drops 50% you’ll be glad you bought SCHD
2025 is going to be a tough year in my opinion
nice job
SCHG looks to be mainly 6 stocks, why not just buy Apple, Microsoft, NVDA, Meta, Google, and Amazon for maximum growth?
Thanks big Bob!
Payout is not free. It dropped same out on ex date to pay you back those dividends.
Just look at SCHD chart
Good can buy more shares
That is how it works yes. Your point?
The exchange adjusts the previous close price down by the amount of the dividend. Standard practice. It's just an artificial accounting construct. (No other expense or income payment causes the exchange to automatically adjusts the price.)
You owned 300 shares at the ex-dividend date. Each share paid out $0.8241 per share.
Why are people guessing the number of shares? He may have bought some at $80/share and some at $71/share. There are more variables you have no idea about.
SCHD id only correlated with higher rates. It will not do well in higher rates environment
Just buy VOO forever
And then miss out on gains and growth, brilliant. That's like buying only the SCHD lol
I currently own SCHF, SCHG, SCHV & SCHE. No SCHD.
Is there a reason for that?
Why?
Exactly two years ago today, NVIDIA reached a 52-week low, along with several other top semiconductor companies.
Yup I’m going all the way on schd for awhile! And it’s in my Roth IRA so those dividends are tax free which I’ll use to buy my reits like O and VICI!
I’ve got the QQQ in my Roth right now
295 shares.... I received $2500. I buy more shares every month with a goal to have close to 4000 shares in the next 3-4 years which would provide a monthly income for my wife when I'm gone. oh and i drip
That's awesome. Good looking out! What's your wife doing for you for when she's gone?
I prefer monthly dividends
SPYI or JEPQ
Much higher exp ratios
SCHD is 100% qualified dividends
Around 300 shares you must have?
FEPI has better stock appreciation, higher yield and pays monthly. Just saying. Blows SCHD out of the water.
And a 10x higher expense ratio and a way less diverse set of investments....
Does bob have a discord channel?
SCHD 2024 Q3 September 2024 dividend is @ .75. A 15% increase from last years Q3.
Is the 0.82 per year or quarter?
Quarter
Considering selling some of my 3020 shares in $SCHD near its 52-week high with a cost basis of $42.19 to lock in profits. I intend to retain some shares while reallocating funds to ETFs or stocks showing stronger performance. Thoughts?
Mixed portfolio with
VOO/SPYI and BIL etf is better
Good video.
But Ally gives 4.2% and doesn't fluctuate
received $132 of dividends for my SCHD. not bad 🤗
Bob: what is bringing schd down so much today 8/9/24?
Maybe SCHD + SPY or QQQ together would be best option for long terms investment ??
SCHD + IS3R or SCHD + (70%QQQ + 30% 1-3 y tres bonds)
I'm getting the sense that youtubers don't understand dividends whatsoever.
LOL how so? What in this vid gave that impression?
@@Crockerfeller its evident in the fact you can't see how obvious it is
Same logic for VYM???
Plus if you only have a 100 a month to invest in it’s a good one to get and any left over to another fund.
It's to slow for me I van get way better monthly income and have a 2 year ROI
"that awful year" s&p 500 returns 30%.......we are a precious privileged little bunch of investors aren't we 😂
Is it normal to add alot of banks/financial institutions? SCHD seems to of added a lot. I'm surprised some of the companies they dropped.
For dividends, yeah it is, the ASX is heavy banks and mining and has a heavy bias towards dividends. As they pay out the most.
At the moment SCHD makes up about 7.5% of my portfolio. Im in mid 20s so ill increase it to 10%-12.5% once I'm 30. As far as the rest of my portfolio, it includes 60% VTI, 20% QQQM, 12.5% SMH
If you ReInvest it without taken out. Do you still have to pay Income Tax on the Dividen?
Yes, but in SCHD they will be qualified dividends meaning they will be taxed at the long term capital gains rate which is a plus.
@@wilinium So a lower tax rate. do you have to do it right away? Do you have to buy SCHD with it? Or is it Long Term automatically once you get SCHD dividens?
Thanks
@@prophetseven728 you can do what you want with the dividend. That has no bearing on how it will be taxed. Consult your accountant. In general "a dividend is considered qualified if a shareholder has owned a stock for at least 61 days during the 121-day period that begins 60 days before the ex-dividend date. The ex-dividend date is the first day that the stock trades without its dividend, and it's one market day before the dividend's record date. "
@@prophetseven728open a Roth IRA…not taxed
Roughly 300 shares
300 shares
But i wish they kept AVGO.
QQQM/SCHD 60/40...one two combo!
If your over 50yo thats a good ratio, any younger lean towards QQQ(M)
I'm thinking 325
320 shares rough estimate
Dividends aren't that great. You can look at them as forced taxable event. Better to hold VOO/SPY and sell when you need money. You will need to pay tax on these dividends (unless SCHD is held in tax deferred). Historical return on VOO/SPY is better too.
308 shares
299.72 shares
Sell SCHD & buy MSTY with dividend of $2.33.
This ETF had underperformed SPY by 50% in less than 2 years. Move on from this dumpster fire.
SCHG is done as a top ETF especially when it cut all the great holdings it had and it’s too high of a price when you could just put your money into something like JEPI or JEPQ and get a huge dividend payment and every month
People are being fooled to believe that dividends ls extra income but it's not😢😮😅😊
310?
you have 301.5 shares
Sorry 300 shares, forgot about the fraction payout
You do know that dividends is not extra income it lowers the value of that stock... do your research it's not extra money people please😢😅
Bout 300 shares I’d guess
It’s paying higher yields to get more investors.
Dividends are not free money
It drops prices on ex date
And then a few weeks later it returns.
Otherwise the Australian ASX would never grow, as we are heavy dividend market.
It only drops for a little bit.
mo is still better
300
🎉
301
👍
Love this! Just sub.
What’s your thoughts on world ETFs? VT? VXUS? ❤
247 / .8241 = 299.72 shares
There ya go.
I've got about 455
SCHD id only correlated with higher rates. It will not do well in higher rates environment
Just buy VOO forever
Investing in only VOO, is as dumb as investing in only the SCHD. And funny enough even people who like the SCHD don't recommend only having that in the portfolio.
You miss out on so many gains.
300 shares
Total returns average last 10 years this includes bull and bear cycles and low and high rates
VOO: 12.82%
SCHD: 10.80%
Does that count dividends?
@@eddiesigerexperience9803 yes!
Total returns includes dividends.
Dividends are not free money.
It comes out of ETF NAV
Payout is not free. It dropped same out on ex date to pay you back those dividends.
Just look at SCHD chart
Yeah, it's more like selling a few shares, but you end up with the same number of shares.
Total returns average last 10 years this includes bull and bear cycles and low and high rates
VOO: 12.82%
SCHD: 10.80%