To The Moon

🌟🌟🌟When it comes to paying dividends, SCHD ETF$Schwab US Dividend Equity ETF(SCHD)$  does it particularly well.   SCHD is a market cap weighted ETF whose selection universe only includes companies with a 10 year history of paying dividends.  SCHD has a laser focus on quality companies with sustainable dividends.  This approach gives SCHD a modest large cap tilt and excludes REITs entirely.  These stocks are then capped at 4% and sectors are capped at 25% of the portfolio.

SCHD tracks the total return of the Dow Jones US Dividend 100 Index.  The good news for small  investors who may want to invest in SCHD is that after the markets close on October 10 2024, SCHD will undergo a 3 for 1 share split.  The ETF share split will apply to shareholders on record as of the close of markets October 9 2024 and payable after the close of markets on October 10 2024.  Shares will begin trading at their post split price on October 11 2024.

Forward share splits will increase the number of shares outstanding and decrease the Net Asset Value per share.  However the share splits will not change the total value of a shareholder's investment.

The Top 10 holdings include $Home Depot(HD)$  $Verizon(VZ)$  $BlackRock(BLK)$  $Cisco(CSCO)$  Texas Instrument, Pfizer, Lockheed Martin, Chevron Corp and Coca Cola.

The Top 10 holdings weightage is 40.9%.  Total number of holdings is 101.

The expense ratio is 0.06%, the lowest compared to similar competing ETFs.  Dividends are paid every 3 months.  The current dividend yield is 2.56%.

Performance wise SCHD is up 0.62% on Friday but down 0.57% in the past 5 days.  SCHD has now risen almost 10% year todate.  In 2023, SCHD is up 19%.  However if we look back 5 years ago, SCHD has risen 54% and 230% since its inception in October 20 2011.

I like SCHD for its focus on dividends on well established companies.  SCHD is overweight in value stocks especially in the Utilities, Consumer Staples Sectors which will do well in volatile markets.

Wall Street Analysts are bullish on SCHD with a Buy rating, Target price of USD 92.77, an upside potential of 10%. 

I love dividends and will be investing in SCHD after its 1 in 3 share split on October 10.  

Dividends are a great source of passive income for me while waiting for capital growth.

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