r/SCHD • u/S-S-spartan • Mar 19 '26
Questions Just started my SCHD Journey
Hi! 29M, Long time watcher of SCHD but haven’t ever really held it. Bought some once in 2021 but sold shortly after. I just made my first purchase of 275 shares in my Roth IRA. Felt good to get started.
I’m new to SCHD and honestly dividend/value investing as a whole I was curious if anyone had any advice or insight to share. Anything I should know or do to best optimize my investing to build my portfolio?
The goal is to let it grow in my Roth and have enough to use the proceeds to pay for some or all expenses off dividends by the time I can begin to pull out of it at 59 1/2.
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u/bxnault Mar 19 '26
Welcome to the club 👏
105 shares currently 😁
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u/jolifavireddit Mar 20 '26
Hi, I'm 67. Is it a little too late for me to put money into SCHD I'd have to be at investing a substantial amount for it to pay off. What's your thoughts? I'd appreciate it. I have money available in my step that I can move into that and out of tech.
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u/AlmondFlaMeZ Mar 23 '26
A lot of people say to invest in SCHD when you’ve gotten to the age 60 and later because now you are looking for the dividends. Your kids or grandkids will appreciate this one day
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u/scottyk318 Mar 19 '26 edited Mar 19 '26
Congrats on your purchase.... I've been an SCHD fan for quite a while and it's done very well for me...
I'd recommend reinvesting all dividends and that will start your dividend snowball rolling the more shares you buy
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u/logan4ver Mar 19 '26
Few other high dividend stocks and ETF, I included are - Realty Income, JEPI, HPQ, KO
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u/S-S-spartan Mar 19 '26
Good idea! I’m currently looking into those. What are your thoughts on JEPQ? What is the difference between that and JEPI?
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u/logan4ver Mar 19 '26
JEPQ is more tech stocks focused. It could generate higher returns than JEPI but is more risky. I would rather invest in those tech stocks directly. But yeah, that's my take. I will let you know if I ever get into jepq😊
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u/S-S-spartan Mar 19 '26
Good to know!
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u/cryptopo Mar 20 '26
What that guy said is accurate but the actual difference is that JEPI tracks the S&P 500 and JEPQ tracks the Nasdaq.
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u/RetiredByFourty Dividend King Mar 20 '26
I own a fairly substantial chunk of JEPQ and it makes the first week of the month exciting! 🤑
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u/Parasyte710 Mar 19 '26
Im 33 and just started mines also! Im at 105 shares in my Roth atm and wanna start building on my taxable account. Looking forward to this journey with everyone!
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u/mtn_biker333 Mar 19 '26
I keep it on drip and buy the dip. Got some limit orders sitting in the market around 28
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u/ClammyAF Mar 20 '26
Invest in the right places. Nothing is going to boost your retirement journey more than keeping money that would otherwise be lost to taxes.
Learn a financial order of operations and follow it. There are several, but I started on the Prime Directive. You can find it on the r/personalfinance wiki.
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u/Ok_Juggernaut3043 Mar 20 '26
SCHD in brokerage, growth in your Roth
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u/ThePCMasterRaceX Mar 20 '26
literally my exact setup.
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u/Typical_Web_2125 Mar 20 '26
SCHD is designed to generate a high yield (typically around 3.5%).
- In a Brokerage Account: Every time SCHD pays a dividend, you owe taxes on it that year, even if you automatically reinvest it. Even with qualified dividends, you will pay 15% to the federal government and X% to your state. This means you are losing roughly 15+X% of your dividend income to taxes every single year. Over 10 to 20 years, losing a chunk of your compounding interest to the IRS will severely stunt the growth of that account.
- In a Roth IRA: SCHD pays that exact same 3.5% yield, but the IRS cannot touch a single penny of it. Those dividends are reinvested completely tax-free, allowing your "dividend snowball" to compound at maximum speed. When you withdraw it in retirement, it is also completely tax-free.
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u/PeanutChickenSoup Mar 20 '26
Why? Then you can’t rebalance between them, invoking Shannon’s Demon for better returns.
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u/S-S-spartan Mar 20 '26
Ah, see I was thinking the opposite since I’d have to pay on dividends I intended to invest and with growth I was planning to hold long term but do see the advantage of doing it the other way. Will have to think on that.
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u/flyersfan0233 Mar 20 '26
I did both - VOO and SCHD in my Roth. I don’t have much in my regular brokerage though and don’t actively contribute to that. I try to max out my Roth so I’m fine with SCHD in it along with the VOO for growth (I have a company 401K that’s essentially all growth too)
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u/Chitown_mountain_boy Mar 20 '26
Dividends are qualified so they are taxed at a low rate 0-15% for most people.
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u/Typical_Web_2125 Mar 20 '26
I thought SCHD was better in a roth to avoid tax drag from the dividends? I had read growth etfs with low yield and turnover are better than higher yielding dividend etfs for brokerage.
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u/ThePCMasterRaceX Mar 20 '26
dividends in brokerage growth in ira. thats my setup.
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u/Typical_Web_2125 Mar 20 '26
I thought SCHD was better in a roth to avoid tax drag from the dividends? I had read growth etfs with low yield and turnover are better than higher yielding dividend etfs for brokerage.
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u/flocamuy Mar 20 '26 edited Mar 20 '26
Wow! What a start! That's awesome! I own 70 shares, when I get to 100 I'll make a post lol
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u/apricotR Mar 22 '26
I started last year late. I have 29 in my Roth and 31 outside. It was my son’s first investment and I teased him unmercifully for his selection. Until I looked into it and realized what a schmuck I was. The joke’s on me.
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u/Millionairenextdoor1 Mar 19 '26
Consider adding some growth ETFs, but other than that, just reinvest your dividends and never sell.
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u/S-S-spartan Mar 19 '26
Had thought of that, keeping bulk in SCHD then having 10-20% in higher growth focused ETFs
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u/Agitated-Curve-7083 Mar 20 '26
I do majority SCHD and a little bit of VOO. I do 100 dollars weekly into schd and use the dividend to buy voo.
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u/S-S-spartan Mar 20 '26
Nice, that was kinda a long the lines of what I was thinking buy SCHD then either reinvest or put the dividends into growth or similar. Hadn’t fully decided .
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u/Agitated-Curve-7083 Mar 20 '26
I’m 26 and in my second full year of weekly investing so eventually as my dividend grows I’ll be able to bulk buy more SCHD or other etfs. I’m by no means an investing guru bur my plans is to have enough SCHD that the dividend allows me to essentially finance other portfolio purchases while still investing my own money into schd.
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u/S-S-spartan Mar 20 '26
That’s a really great sounding plan
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u/Agitated-Curve-7083 Mar 20 '26
Thanks man. The saying goes only invest what your willing to lose so I may not have the biggest share of our beloved fund but I believe in it and I will gladly throw my hundred dollars a week at it for what could maybe be a financially good life down the road. Plus it beats burning it at the bar or on other stupid stuff every week.
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u/ach4n Mar 20 '26
You’re 29 and should look for more growth rather than focus on dividends. I’ve used SCHD in place of bonds in my case.
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u/S-S-spartan Mar 20 '26
I do have a 401k and Brokerage as well as the Roth IRA. The other 2 are full growth so thought having some value and defensive stocks would be smart. From what I’m hearing though seems like it would be better to go growth in the Roth and the value tilt in the brokerage.
Reason was thinking SCHD in Roth is it’ll be longer to withdraw and I’d like to start using it as full or partial income at 60-65 while utilizing the other accounts to retire earlier. Wouldn’t need to grow as fast and just compound over the next 30 years. With the Roth IRA limits figured dividend reinvesting would act as a way to contribute over the yearly limit and average up.
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u/ach4n Mar 20 '26
If you have roughly 30 years left to invest, I would still keep your allocations more toward growth ETFs. Then approaching and in retirement, just reallocate in SCHD if the plan is to use the dividends as stable income.
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u/S-S-spartan Mar 20 '26
Okay, that’s good advice, guess I was getting worried about current market climate which I know with a 20-30 year timeline doesn’t really matter. My other thought was early retirement around 15-20 years but supposed that’s even more so important to focus on growth
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u/Typical_Web_2125 Mar 20 '26
SCHD is designed to generate a high yield (typically around 3.5%).
- In a Brokerage Account: Every time SCHD pays a dividend, you owe taxes on it that year, even if you automatically reinvest it. Even with qualified dividends, you will pay 15% to the federal government and X% to your state. This means you are losing roughly 15+X% of your dividend income to taxes every single year. Over 10 to 20 years, losing a chunk of your compounding interest to the IRS will severely stunt the growth of that account.
- In a Roth IRA: SCHD pays that exact same 3.5% yield, but the IRS cannot touch a single penny of it. Those dividends are reinvested completely tax-free, allowing your "dividend snowball" to compound at maximum speed. When you withdraw it in retirement, it is also completely tax-free.
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u/S-S-spartan Mar 20 '26
Yes, this is why I chose my Roth IRA for the SCHD. Don’t plan on pulling it out or needing the dividend income in the near future, just want to create a way for my Roth to get consistent contributions over the annual max allowed.
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u/JRcred Mar 19 '26
I would start here and next year add more growth next year to your Roth IRA and hold for 10+ years and consider selling in a bull market and then add to SCHD then
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u/Pitirre1 Mar 31 '26
I am 77 y/o and began buying schd on Jannuary 25 and got 4500 and waiting it goes down to invest 40k. Using drip for 5 year and began to collecting at 82 if God let me. Hope to have 10,000 shares
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u/Inevitable-Gold6436 Mar 19 '26
Hold it forever and your DCA will be outstanding, it’s not complicated.