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Schwab U.S. Dividend Equity ETF: Built For Dividend, Set For Growth

Published Thu, 03 Sep 2020 13:49:51 -0400 on Seeking Alpha

Seeking AlphaETF AnalysisSchwab U.S. Dividend Equity ETF: Built For Dividend, Set For GrowthSep. 3, 2020 1:49 PM ET|| About: Schwab Strategic Trust - Schwab U.S. Dividend Equity ETF (SCHD), Includes: BLK, DJI, QCOM, SP500, SPHD, SPYD, TXN, UPS, VYMby: Michael A. Gayed, CFAMichael A. Gayed, CFA The Lead-Lag ReportAnticipate Corrections and Volatility with Award Winning ResearchSummarySchwab U.S. Dividend Equity ETF invests in quality companies that have been consistently paying dividends for the last 10 years.
It offers a yield of 3.08% against the average 1.71% yield offered by S&P 500 companies.
The ETF also has handsomely outperformed its peers from the momentum point of view.
Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert. - Peter Lynch
The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) owns fundamentally strong stocks that have a history of consistently paying dividends for the last 10 years. It invests mainly in large caps, and its holdings are reviewed every quarter. Dividend payouts by S&P 500 (SP500) companies have doubled in the past decade, facilitating quality dividend ETFs like SCHD to reward its investors and to establish a formidable reputation in the market.

Image Source: My research posted on Twitter
SCHD's dividend yield works out to 3.08% as of August 31, 2020, and its portfolio value is primed for growth because the Fed's ultra-loose monetary policy and the low-interest-rate regime will make investors chase risky assets, especially large caps that keep pace with the indices.
I am bullish on SCHD's prospects, but purely because of the Fed's liquidity gush, not from the "economy" point of view. Here's a look at its internals:
SCHD's Portfolio

Image Source: SCHD Website
As of August 31, 2020, about 42% of SCHD's funds were parked in solid large caps,... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
QUALCOMM 79.08   28.0 2.82 2.48 3.15
UNITED PARCEL SERVICE 122.56   22.4 5.47 3.84 3.14
BLACKROCK 434.75   16.5 26.34 13.20 3.08
VANGUARD HIGH DIVIDEND YIELD ETF 89.75   0.0 0.00 0.00 2.79
TEXAS INSTRUMENTS 130.22   23.8 5.47 3.08 2.42

QUALCOMM - QCOM
QUALCOMM - QCOM  


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