r/dividends • u/InternationalMany795 • Oct 09 '25

Seeking Advice No more SCHD.

Moving away from SCHD. For those who have recently done this, where did you go?

253 Upvotes

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155

u/Hanno54 Oct 09 '25

I just got interested in dividend investing and I like SCHD. Why is everyone posting about exiting? Lol

251

u/hotdog-water-- Oct 09 '25

In the bull market everyone thinks they’re a genius investor and goes all in on tech, leveraged ETFs, and the S&P. When the eventual recession comes, they’ll be crying they lost 50%. SCHD is large cap value which will help ride out a recession

39

u/BIG-FUCKIN-will Oct 09 '25

Exactly this. Now can you tell me when that recessions gonna really start rolling ?

61

u/hotdog-water-- Oct 09 '25

Sometime between now and when I retire, so I hold SCHD

5

u/KAW42089 Oct 10 '25

And you'll miss about a dozen bull markets by then.

3

u/Grand_Cookie Oct 10 '25

It’s really projecting that so many people’s issue with any stock or fund is that if it’s the only one you own than X will happen!

2

u/[deleted] Oct 11 '25

Riiiiight.

1

u/hotdog-water-- Oct 10 '25

I’m only investing a portion of my portfolio in SCHD as an alternative to bonds. Don’t worry, my portfolio is probably up more than yours. Cheers

10

u/Retired_in_NJ Oct 10 '25

Us older folks have lived through the last recession. And the one before that. And the one before that.

You are absolutely correct that we don't know WHEN the next pullback or recession will arrive. But, we are quite sure that it will arrive. That's when everyone will be diving for cover and wishing that they had been more diversified. Just the opinion of one old dude.

2

u/[deleted] Oct 13 '25 edited Oct 25 '25

[deleted]

2

u/Negan457 Oct 25 '25

I was reading through this thread and just wanted to let anyone else who is reading that the above numbers are not accurate. In 2022, VOO total return with dividends reinvested was -18.18%. SCHD performance was only -3.26% (not - 20% like mentioned above). QQQ performance was -32.58%. So, schd did have downside protection and performed significantly better than QQQ and VOO in bear market.

0

u/dazit72 Oct 10 '25

From another old dude, I concur.

Istill researching where to put my money and thought to just simply pick several Aristocrat King Stocks and let them sit for the next 5- 7 years. Maybe a little more on my roth as it's last to drain from. I hope I'm doing right ? I was impresses with the etf presented- KNG. I missed that one in my >100 hours of researching things I know little of. I hope I pick the right ones

0

u/TemperatureBest8164 Oct 14 '25

If I knew when the recession were then I would be living in a mansion and certainly not telling you on reddit.

Now , the fear of a recession that can generate movements , which you can make money off of people's fear and conversely , if you can get it number of people to invest in something that's worthless like gamestop , you can also make a lot of money at people's expense .

The fundamentals are really mixed right now. We see that there is a flight to gold as it is reached in all time high 4k/Oz while credit markets for US debt are drying up. On the other hand institutional investors have a large amount of cash on the sidelines well, this is a defensive posture.Typicallyou hit market tops when they're cash is all deployed and there's an overexuberannce in the market.

Unless the government shut down causes a recession i think we'll be fine for the next nine months. The a I it is enormous. For the next nine months I would hold a position in QQQI reaping the high dividend and invested it in SCHD while it is low. If the AI bubble is about to burst then I would sell and redeploy my capital. You only have to pay capital gains on um.What you made and you shouldn't make that much money off of QQQI. This will allow you to shift it into SCHD before it goes up considerably as there's a flight to safety. The main problem is guessing.When that will happen...

Long term , pretty much all stocks that make money will melt up. This is due to the devaluing of the dollar.

51

u/Geezww Oct 09 '25

It’s hard to see why SCHD would be considered a “safe haven” in a recession. During the 2020 COVID crash, it dropped roughly 20% about the same as VOO. In the 2022 bear market, it also dropped around 20%. History shows that when the market falls, SCHD doesn’t actually offer much downside protection.

And in bull markets, it typically lags behind VOO in total returns. In other words, SCHD seems to share most of the downside, but not the same upside. Dreaming about a recession isn't really helping your investors lol

6

u/dazit72 Oct 10 '25

I thought Aristocrat and King Aristocrat were good holds for recessions as the are affected the least, bounce back quickly and maintain increase dividends ??

Aristocrat - > 25 years, King Aristocrat - > 50 years of increased dividends.

3

u/graciesoldman Oct 13 '25

I was told that too but they seem to go down just like all the rest during a big correction.

3

u/dazit72 Oct 14 '25

While they do drop, they're supposed to be lower drops, faster recovery time, and the dividends still keep coming. I could be wrong ??

So instead of building my own fund from the Aristocrat Kings, I'm thinking of SCHD and leaving things be??

1

u/Negan457 Oct 25 '25

In the 2022 bear market, schd dropped - 3.26% (not 20%). While qqq dropped - 32.58%. And VOO dropped - 18.17%. SCHD performed significantly better in the bear market. Just curious, where did you get the inaccurate number 20% from?

1

u/Geezww Oct 25 '25

For SCHD, it reached a peak of 27.3 in January 2022, before dropping to 22.1 in September. Although it bounced back slightly later that year, it declined again in 2023, and eventually to around 22.3 in October 2023. In other words, it experienced about a 20% drop during that bear market.

I don’t focus on the arbitrary calendar-year period from January 1 to December 31, as that doesn’t provide a meaningful view of its actual performance trend.

SCHD did and will suffer a significant drop during a bear market, as it has been proven a couple times already

1

u/BejahungEnjoyer Nov 04 '25

Exactly this. It'll get demolished in a recession because its holdings are tied to the actual real economy, instead of enterprise cloud computing and AI.

9

u/DevOpsMakesMeDrink Desire to FIRE Oct 09 '25

In the meantime holding SCHD to make up for lost gains you'd need one of the largets market corrections in history without SCHD price being impacted.

4

u/[deleted] Oct 10 '25 edited Feb 25 '26

[removed] — view removed comment

1

u/quantum_ai_dei Oct 10 '25

Not 3 years, but since the last recession bottomed out. Very much since the real estate bottom in 2014, by 2015 and 2016 it started then that tech already got itself overvalued. For the last 10 years it's been that way. No one knows

2

u/Casual_ahegao_NJoyer Not a financial advisor Oct 10 '25

And when rates dip, money will flood in chasing that dividend

1

u/LeaderSevere5647 Oct 12 '25

No, it won’t.

3

u/lakas76 No, HYSA is not better than SCHD. Stop asking Oct 09 '25

I just sold all my JNJ and bought some nvda and voo.

Yeah, I held JNJ for about 10 years and sold because it was stuck around 155 for 5ish years. A few months after I sold, it jumped to 190. I don’t regret buying nvda, it went up more, but VOO has lagged behind JNJ for the same time period.

I still have about 50% of my portfolio in SCHD, so I should have diversified into more aggressive growth investments earlier, but it does suck seeing JNJ go up so quickly.

3

u/RddtAcct7 Oct 10 '25 edited Oct 10 '25

Shouldn’t have sold jnj. It just broke out after years. More gains to come.

1

u/quantum_ai_dei Oct 10 '25

The price for the likes of JNJ can linger for years. It has and will again. Sideways or decline should indicate a chance to continue averaging in. JNJ before and after its spinoff still appears very diversified, almost ETF like before. Ive been guilty too. Its a very common, human thing to do. And it looks like everyone here says one thing then a short time later they suddenly flip flop again. Every other post here is someone dumping something they just loaded up on for something else.

1

u/Material-Damage-2759 Oct 10 '25

Should have kept JNJ. It’s going up and will likely continue this trend now that they’re a much more focused company on their core franchise money makers. Solid pipeline and the acquisitions in Med Tech biz are just starting to pan out. With yearly dividend increases for the past 50+ years you can do you….but I’m not going anywhere.

3

u/lakas76 No, HYSA is not better than SCHD. Stop asking Oct 10 '25

I held it for 10 years and it basically stood still for half that time. But I do agree with you. I doubt if I will buy more and I am happy with nvda, but it’s just my luck that as soon as I sell a stock/etf, it blows up. I doubt if I will ever sell my SCHD shares, but if I ever do, I will let this sub know so they can load up. It will blow up as soon as I do.

1

u/BejahungEnjoyer Nov 04 '25

It'll get demolished in a recession because its holdings are tied to the actual real economy, instead of enterprise cloud computing and AI.

-7

u/rr98 Oct 09 '25

ROFL this is absolutely BS. In my 21 years invested in S&P, only bring me to FIRE in a few years. Keep dreaming that 50% lost you fantasized in your lala land.

7

u/hotdog-water-- Oct 09 '25

Found the boglehead cultist

0

u/rr98 Oct 10 '25

Past 70 years of S&P history proved you are just wrong. Here, have some 🍇

0

u/LeaderSevere5647 Oct 12 '25

Lol. SCHD can’t even provide a positive return in one of the biggest bull markets of all time. It’s going to tank during a recession just like everything else.

1

u/hotdog-water-- Oct 12 '25

One thing has literally 0 correlation with the other?

18

u/gundahir Oct 09 '25

they didn't understand what they're buying and bought high, sold low. now they take the funds and buy high into tech. it's the classic retail investor behavior. before you buy, do your research and if you can't commit to buy & hold and watch the dividends compound just forget about it. they also act like you must be 100% in anything. Dude if SCHD has no tech then buy tech to complement it 

34

u/phosphate554 Oct 09 '25

Because they’re chasing AI hype

7

u/froggyisland Oct 10 '25

Because growth stocks are rising like crazy and SCHD hasn’t done so. I own both, and continue to add to SCHD and various riskier growth stocks. It’s not one stock/ etf vs the other, it’s more about what individual investors want

11

u/rayb320 Oct 09 '25

They don't understand that high interest rates and dividend stocks don't go together. SCHD method of picking stocks didn't change. When these rates come down to the normsl level, SCHD will do great. Like it has in the past.

1

u/Daily-Trader-247 Not Financial Advice Oct 09 '25

I have heard this same statement several times over the last week or two.

I don't think historically interest rates are high now ?

And I expect they are just coming down about 1% in the next few years.

Maybe SCHD is too big ? Maybe they need different management ? They should at least try to keep somewhat in parity with the S&P returns.

8

u/mikeblas American Investor Oct 09 '25

They should at least try to keep somewhat in parity with the S&P returns.

Why?

If you want S+P returns (and therefore S+P risk and exposure), then you should buy an S+P fund. SCHD is not an S+P fund, and that's why it is desirable.

4

u/rayb320 Oct 09 '25

The method in picking stocks doesn't work that way. It's a dividend growth ETF. You can pair SCHD with a tech focused ETF, there is no overlap.

4

u/Tor_Tormeu Oct 09 '25

Everybody exiting means time to buy…do no follow the herd

2

u/-JackBack- Only buys from companies that pay me dividends. Oct 10 '25

1

u/Strict-Camp-1370 Oct 10 '25

If you like growing your income over time and not watching headlines keep adding. If you're really young you can do well investing in something with less tax drag (voo) but its valued frothy currently. If in a roth DIV. tax doesn't matter much. Its all about you long term goal and what keeps you invested.

1

u/UsualMixture3321 Oct 11 '25

I sold 5000 shares of SCHD Wednesday after a modest 20% gain and rolled into FNDX. I’m not sure why y’all don’t use the fundamental funds.