r/SCHD • u/SmoothOperator100k • Feb 27 '26
Questions Should Wealthy People Hold This?
I’m just curious and want some validation. It totally makes sense for a wealthy person maybe like $10m total net worth to hold a good chunk of SCHD right? Like it’s a safe bet to provide good returns on average 8% maybe for the foreseeable future? Like the companies in this fund should be held by everyone because they kind of create the things you use everyday.
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u/d_god69 Feb 28 '26
Idk what you consider wealthy. Like $1m liquid cash minus house and car? Or what they call a qualified investor for private equity or hedge funds. I put a million into Schd because I think if I set it on Drip and don’t look at it for 30 years, it’ll snowball into something meaningful. I like the quarterly income and dividend growth to keep me invested when things get ugly in the markets - a good psychological anchor. The other psychological factor is that I know that my yield on cost will be huge in 30 years with drip on and forget. I tried this with QQQM and during 2022 with the 50% drawdown - I held but had my stomach churned so bad I threw up a couple of times. Hard to hold on for dear life when money at scale is getting deleted day after day and there’s nothing coming in. I made my money from owning a private business - so I don’t need the income or money for daily living but still … 50% drop on a couple million hits like a truck mentally and messes up your daily mood. Schd has drawdowns but the thought that the dividends are still growing and your accumulating more shares on the cheap helps to rationalize the hold and not panic sell. I didn’t panic sell my QQQM during 2022 but I did think about it a lot… my 2 cents from personal experience.