schd total return is not everything. SeekingAlpha.com On July 26, 2014, there were many articles mentioning the recent poor performance of schd. Excluding tech stocks, the results were not good. Investing in high-dividend companies based on various financial indicators, this dividend ETF is composed of companies with low debt ratios, low price-to-cash ratios, high return on equity, and high dividend yields. Critics point out that it excludes large tech stocks. Historically, even high-growth premium stocks can underperform. Investing in dividend stocks can provide stability, even if the highest returns are sacrificed. Interestingly, schd's performance was almost identical to RSP, which tracks the S&P 500. RSP invests the same amount in each company in the S&P 500. I have been investing since 1998 and remember the strong performance of tech stocks in the early 2000s.

In 2007, I recall a situation where investors could not keep up with the market returns as they reduced their exposure to financial stocks. With recent advancements in AI, large tech stocks have been gaining sustained advantages, and it is unpredictable how long this trend will continue. In a bull market, well-known companies often attract popularity. Investors who return to the market after a long absence tend to prefer such stocks. However, if cash flow is needed after retirement, instead of focusing solely on total returns, other important factors must be considered. For individuals who need to use their retirement savings, the consistency of dividend yields may be more important than the highest yield. While SCHD may not be suitable for everyone, there are stable dividend growth ETFs that provide high dividend yields. SCHD brings to mind the 4% rule. The 4% rule suggests that retired investors can withdraw 4% of their portfolio's initial balance.

It is a principle to use it for living expenses and adjust it for inflation. The main advantage of SCHD is that you can cover living expenses with dividends without selling stocks. Also, SCHD has a low growth premium and low price volatility. Whether it meets your investment criteria or not, it is very important that you can easily have a portfolio with a dividend yield close to 4%. Below is a list of top holdings that account for at least 1%. These 28 major companies account for 81% of the portfolio, with an average expected return of 3.84% and a 5-year dividend growth rate of 7.89%. While dividends are not guaranteed, it is reassuring that the companies in the portfolio have been increasing dividends for an average of 20 years. According to SCHD, the Dow Jones U.S. Dividend Index has recorded an average annual growth rate of 11.28% since 1992. Controlling the 2008 financial crisis, the returns were surprisingly consistent. Due to the characteristics of SCHD's composition, it may be somewhat.

There is a paradoxical aspect. Currently, the financial weight is overvalued at 17.3%, while the technology weight is undervalued. Investors who desire predictable cash flow income can achieve their goals by investing in dividend growth stocks and international portfolios instead of withdrawing 4% from the SMP 500. Since the current bond yield is overall above 4%, by mixing bonds according to risk tolerance, one can easily achieve a 4% cash flow target. As an SCDA investor, I am satisfied with the fact that I can provide income and growth tailored to inflation through this ETF. However, I do not expect SCHD to outperform the market in the current situation. The purpose of SCHD is to provide stable and steady cash flow income, not the highest total return. For more details, please refer to the link address in the description. Enter the realm of wealth through subscription and likes. Thank you.

안정적인 노후소득 SCHD와 4%규칙, 20년 후 배당금 10배 더 받으세요!

"풍족하고 부유한 삶으로 가는 길"을 함께해요. :) 



[ 책 안의 내용을 발췌해 이해하기 쉽게 
그림영상으로 만들었습니다.

"부유한책방" 은 
책의 비평 및 리뷰가 아닌

책을 통해
경제적 자유, 부자가 되어가는 길에 도움이 될

다양하고 유용한 정보를 
공유하기 위한 채널이라

저의 주관적인 의견은 
어떠한 영상에도 포함되지 않았습니다. ] 


since 2020. 12. 3 

E-mail: angela.jieun84@gmail.com

https://blog.naver.com/angelajyun




안정적인 노후소득 SCHD와 4%규칙, 20년 후 배당금 10배 더 받으세요!

안정적인 노후소득 SCHD와 4%규칙, 20년 후 배당금 10배 더 받으세요!

스크립트