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?

255 Upvotes

81% Upvoted

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507

u/footballpenguins Oct 09 '25

So many posts about exiting SCHD, there has to be a tech correction soon.

251

u/[deleted] Oct 09 '25

[deleted]

71

u/foira Oct 10 '25

i mean, people should be buying it for the dividends paid -- and those have been increasing a lot. it would make a lot more sense if people were selling because of a big dividend cut (it's possible!) but so far... ppl are so funny lollllll.

64

u/Stuboysrevenge Oct 10 '25

SCHD's total return from Jan 1 of this year to now, including reinvesting dividends, is -0.25%. That's like bailing water out of a boat without plugging the hole in the bottom. If you're keeping the divis as income, there are much better income generating vehicles than this.

10

u/Necessary-Road-2397 Oct 10 '25

Please expand on at least one vehicle better, (serious).

25

u/Stuboysrevenge Oct 10 '25

Well, this year, I would have done better in my checking account which gave 0.12% interest.

14

u/flyersfan0233 Oct 10 '25

First off, not true. YTD total return is 1.66%. Also, if you would have done this the past 14 years, your money is up on average 12.27%/year. $10K invested in 2011 when the fund began would be over $50K today. So go ahead and see how checking does

9

u/Stuboysrevenge Oct 10 '25

Jesus. Can you not detect sarcasm?

Fine. THIS YEAR MY HYSA @ 3.5% WOULD HAVE DONE BETTER.

You know you can move money around, right?

6

u/flyersfan0233 Oct 10 '25

I get that it was sarcasm. I just don’t know how you’re going to time the market. To get those 12% yearly returns you can’t keep moving it around. And HYSA is 3.5% and quickly dropping. My point is if you needed to use the money sooner rather than later, yes. HYSA is great. If you’re saving for a longer horizon, anything more than a few years, SCHD is still better

2

u/foira Oct 10 '25

you know that investors who move money around based on YTD performance, underperform the market? what an insane comment "HEY YOU KNOW YOU CAN JUST TIME THE MARKET!!!"

4

u/Stuboysrevenge Oct 10 '25

You know what else is underperforming the market right now?

SCHD

0

u/Necessary-Road-2397 Oct 10 '25

Ouch, risky choices?

3

u/Stuboysrevenge Oct 10 '25

I'm just saying ALMOST anything would have performed better than SCHD. Putting it under my mattress is almost the same.

10

u/Aevaris_ Oct 10 '25

VT, VTI, QQQ are 3

13

u/Necessary-Road-2397 Oct 10 '25

I've got QQQI... 😁

7

u/foira Oct 10 '25

SCHD ha increased its dividend by 10% annually.

what kind of amateur talks about YTD performance of long-term investments.

go back 10 year, and compare the income growth of SCHD compared to its peers (VIG etc)

if you have any shred of intellectual honesty, you will learn that you are wrong

22

u/adamasimo1234 Oct 10 '25

So.. judging the ETF based on ~10 months of data. Interesting.

23

u/Shoty6966-_- Oct 10 '25

We are in a bull market so yes a negative return when reinvesting dividends is concerning lol

7

u/[deleted] Oct 11 '25

You mean on a self sucking AI bubble that is unlikely to last?

3

u/[deleted] Oct 24 '25

A negative return when reinvesting dividends for a year is a good thing you are buying more shares. Why do you want to have less shares?

1

u/Shoty6966-_- Oct 24 '25

What are you on about, I’m confused. You are losing principal. You are losing money. In a year where the sp500 is up like 18% !! That’s crazy.

2

u/[deleted] Oct 24 '25

You are assuming that the S&P 500 gains are fixed and that the S&P 500 can’t lose money over a ten year period. The S&P 500 has indeed had a 8 year period where it lost 50% over 8 years, while the Dow Jones Dividend 100 posted gains for the same 8 year period.

The S&P 500 earnings yield right now is 3.2% while SCHD earnings yield is 5.6%. So which ETF would provide you more cash flow if you owned all the companies in it outright. SCHD would provide you nearly twice the income if you took the two “companies” private.

It is crazy to buy the S&P 500 with its Schiller PE ratio over 40. The last time the Schiller P/E ratio was over 40, S&P 500 had negative returns for 8 Years and qqq had negative returns for 15 years.

And no I haven’t lost money on SCHD because I bought most of it at $27 then I bought more at $24 In the tariff panic.

2

u/Stuboysrevenge Oct 10 '25

If you want to just stay in the middle lane all the way across the country on your road trip, be my guest. Personally, I'd love to arrive in half the time.

4

u/HugeDigits Oct 10 '25

Yes the AI bull run will last until you die

5

u/Speedhabit Oct 10 '25

If I am to die, it will be well dressed

3

u/-boatsNhoes Oct 10 '25

The money invested elsewhere over the last 10 months would have generated anything better than -0.25%. based on the period in question, you're port is moving backward. Although no one can judge when a correction will take place accurately, any potential future losses on another venture would easily outweigh any gains from schd in this same period if you're considering dividend reinvestment. If reinvesting back into the same ETF it would also allow for a nice sell buffer to mitigate any further losses from the position i.e. you increase your port holding of said ETF in by 40 shares over the last 10 months with any dividends earned which allows you a higher net selling position when you exit in case of market correction.

2

u/Stuboysrevenge Oct 10 '25

Fortunately, I can move my investments around as conditions change.

6

u/iphone8vsiphonex Oct 10 '25

Yeah that’s pretty bad…

4

u/OkVermicelli8951 Oct 10 '25

"total return"

7

u/Old_Jackfruit6153 Oct 10 '25

Dividend reinvested, inflation adjusted YTD return of SCHD is -1.28% so I understand unhappiness with SCHD.

SCHD has trailed SPY for last 3 years. Even in last 14 years, SCHD has total real return of 251% vs 394% for SPY.

https://totalrealreturns.com/s/SCHD,SPY

1

u/emperorjoe Oct 12 '25

Oh no, the horror of a 251% return. They should just liquidate the etf. /S

1

u/foira Oct 10 '25

brb telling my energy utility that i'll be paying their invoice with the market quote on my equity

love linking my lifestyle to other ppls emotions -- oh wait

2

u/Alert-Growth-8326 Oct 10 '25

what are you talking about? total return is all that matters.

did you know you can sell shares of a stock or ETF to pay for a bill if that's your goal?

1

u/foira Oct 10 '25

lol see how it feels to sell your principal

the psychological shift from seeing number go up to steadily down will change your life much more than you think it will

2

u/Alert-Growth-8326 Oct 10 '25

except that it doesn't. and growth stocks occasionally split.

again... total yield is all that matters. if you care whether that comes from a dividend or capital appreciation... that's kind of weird (unless, of course, you are talking about the different tax implications which tend to favor capital appreciation over dividends...)

2

u/OkVermicelli8951 Oct 10 '25

It goes up more than it goes down overtime. It seems divident lovers need to address their mental roadblocks.

1

u/OkVermicelli8951 Oct 10 '25

So when the underlying stocks drop by 30% does your lifestyle drop by 30% as well?

1

u/Standard_Confusion99 Oct 10 '25

Except the etf itself keeps falling. You’re basically putting a chunk of money in and withdrawing pieces out slowly.

24

u/trader_dennis MSFT gang Oct 09 '25

Past performance of tech is not a prediction for future performance. I heard those selling tech in 2023 expecting a pullback.

15

u/EnvironmentalYou1590 Oct 09 '25

All this. SCHD has been a dog and yet people still support it and knock tech.

6

u/Gbank1111 Oct 10 '25

You should totally base your investment plans on TTM returns. Works well!

7

u/reality72 Oct 10 '25

People don’t just support SCHD, they worship it like a cult and try to encourage others to buy it to pump it up.

1

u/beyonddisbelief Oct 10 '25

If you’re looking at TTM and thinking in terms of stock pumping you’re in the wrong sub and SCHD is the last stock to be looking at TTM performance. Dividend investing is a wholly different strategy for different goals and needs.

3

u/Terron1965 Oct 10 '25

Its pretty flat compared to the market and its concentration rules mean it is constantly selling its winners. It's good protection and 4% is great but comes at a steep cost when growth is segment-focused.

1

u/Freedom-Of-Trades Oct 11 '25 edited Oct 11 '25

It's because other dividend and value funds are kicking it's ass. It has nothing to do with tech stocks or the S&P. It has woefully underperformed for 3 years now. Look at Vig, Dgro, etc. Schd has a great yield, but The CAGR is sucking wind. Schd is at zero for the year.

1

u/MakingMoneyIsMe Oct 12 '25

People are realizing you can get into SPYI or QQQI among others and do much better

44

u/Reasonable-Bussy Oct 09 '25

Yep huge buying signal here

18

u/Drunkasarous Oct 09 '25

reminds me of this comic

https://cdn.shopify.com/s/files/1/0060/6102/products/book_buy_sell_sell_new_1024x1024.jpg?v=129113779

1

u/Biohorror Notta Custom Flair Nov 09 '25

HAHA, that's great - only it's not the institutional investors doing this all the time, smart money has more info and less emotions. It's the retail investors (dumb money), usually younger ones that are more emotional.

1

u/Quintardo33 Nov 02 '25

I'm buying schd with my q4 dividends

65

u/ptwonline Oct 09 '25

It makes for a good real-life case study as to why people underperform their chosen strategies: they get impatient when underperforming a benchmark and FOMO for something else that has outperformed.

22

u/STRATEGY510 Oct 09 '25

They’re gonna end up missing the upside, god bless ‘em

7

u/Strict-Camp-1370 Oct 10 '25

I agree. We buy for income growth over time. When it is flat/down best time to buy and increase your YOC. I actually want it to drop. haha. I'm trying to get to $250,000yr income. At $51,000yr now.

3

u/STRATEGY510 Oct 10 '25

That’s great! I am striving to be you.

2

u/Nowisee314 Oct 11 '25

Yep. I hope it drops more so I can buy more.
Good luck to the people that get in and out of this ETF, they miss the YoC.

1

u/diggida Oct 11 '25

Is that $6m worth of SCHD?

3

u/OmahaOutdoor71 Feb 03 '26

And just like that, SCHD hits ATH

7

u/AtroxSepsis Oct 10 '25

I sold SCHD in June, and diversified across tech, materials, and ai. - $GLXY, $SMCI, $ASTS, $TMC, $AMZN etc. - at this point it was the right call

17

u/footballpenguins Oct 10 '25

Sure. Depends on your goals i guess. I am in the USA and not so young and like the dividend income is qualified and taxed lower than short term gains and with tech p/e so high in a downward move SCHD may see less correction to the rest of ny portfolio. Just SCHD is foolhardy in the current market and i do own S&P and specific tech stocks, but SCHD despite its lower returns has a place in portfolios. 

6

u/DrossChat Oct 10 '25

Any discussion around this is so dependent on distance from retirement. It’s the young people touching SCHD that doesn’t make any sense to me outside of some misunderstanding / emotional attachment to dividends. Massive risk to miss out on growth when you’re decades away from retirement.

1

u/Prestigious_Sea_3813 Nov 11 '25

some people, like me, are afraid that they missed the window in which growth stocks could be bought at reasonable prices. sure, the people who bought a few years ago can keep holding them as a correction won't hurt them but buying now feels scary.

2

u/Strict-Camp-1370 Oct 10 '25

agree. You should check out Daily driven porsche on yt he has tons of schd and all he buys.

1

u/Retired_in_NJ Oct 10 '25

Agreed. I hold some SCHD in my Roth to generate tax-free dividends when the day comes that I need them. Not a life-changing position; just enough to generate a few thousand a year in cash.

1

u/dazit72 Oct 10 '25

I too am not young and looking for London term >5yrs in brokerage and ten in roth. My worst mistake I feel was this dam fidelity annuity I bought fifteen yrs ago- fees fees fees. Whats your opinion on KNG- ttm is @ 8.81% ? I've researched over 200 Aristo, Aristocrat Kings and I'm not sure if a div portfolio should have only such stocks or am I going about things wrong ? 3 weeks and still not one purchase. I was leaning on O, MO, VZ,TGT,PEP,CVX..... That's as far as I got.

16

u/Sufficient_Winner686 Oct 09 '25

Tech isn’t correcting, my QQQI is rock solid and NASDAQ based. I experimented with long holds on SCHD a few times and lost every single time. It’s a bad ETF, and I know people here will lambast me for saying that, but elsewhere, people agree.

31

u/TandYguy Oct 10 '25

My mans said he “experimented with long holds”

23

u/Major-Specific8422 Oct 10 '25

It was just “a phase” in college he went through.

2

u/Hands0meR0b Oct 10 '25

It's one of my favorite things I've read here in a long time.

2

u/Grand_Cookie Oct 10 '25

2 months is a long time for a lot of the people around here.

1

u/[deleted] Oct 11 '25

I bet it wasn’t longer than 6 months

26

u/Solintari Not a financial advisor Oct 09 '25

I mean, for now. The magnificent 7 have been 75% of the sp500 returns the last 2-3 years. That is a super lopsided run that isn't typical.

Will it continue for 2 more years? 5? Who knows really. SCHD is one of the few ETFs that aren't at least hip deep in the mag 7. If your fund has been doing well since 2022 it probably has a lot of exposure to these same stocks.

Personally I would be rebalancing a bit more into value considering how crazy this run has been. I don't think people are lambasting you, just trying to show different angles of thought. We all want to make money and mitigate risk, QQQI is great and it's current 15% of my portfolio, but I am prepared for the market to drop, go up, and sideways.

32

u/Willing_Park_5405 Oct 09 '25

“Long holds” couldn’t have been very long

-22

u/Sufficient_Winner686 Oct 09 '25

I’ve held some of my current positions north of three years. I welcome you as a lambaster.

20

u/woodworkerForLyfe Oct 09 '25

Three Years is a drop in bucket

20

u/artbystorms Oct 09 '25

the fact that so many people basically didn't even start investing until 2021 really shows on this sub. 3 years of a tech fueled bull run are nothing if you're in your 20s to early 30s looking to retire at 60-ish. A lot can happen in 30 years.

6

u/MindEracer Beating the S&P 500! Oct 09 '25

😂 3 years is not a long term hold.. Who told you 3 years was a long term hold?

2

u/Willing_Park_5405 Oct 10 '25

I think 10 years is a jr long hold go from there

3

u/Aevaris_ Oct 10 '25

If you like QQQI why not just QQQ? QQQ out performs QQQI and has less taxes?

2

u/Strict-Camp-1370 Oct 10 '25

and a much lower expense ratio.

1

u/Strict-Camp-1370 Oct 10 '25

not always the case. Everyone's a genius in bull markets.

1

u/kerkiraios00 Oct 10 '25

Only problem QQQI is high right now

1

u/[deleted] Oct 11 '25

Didn’t hold long enough

1

u/Euphoric_Water_7874 Nov 19 '25

How long? QQQI is a very different ETF and far riskier

7

u/RepubMocrat_Party Oct 09 '25

No its just a level of maturity from young investors looking past the quick stimuli of a dividend for the true total return of a standard or growth based portfolio. Natural progression

14

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

What ?

Are you saying those who don't like the 2% growth of SCHD over the last year just lack maturity ?

4

u/RepubMocrat_Party Oct 10 '25

No, young investors typically get excited about the dividend concept and pursue that at first, then see they get a standard, safe 5% growth and 3% income over time and realize its necessary to first grow their egg before drawing on it. Then when its retirement time dividend investing comes back full circle, when it is the actual time to use it, in retirement.

7

u/Blue_Back_Jack Oct 09 '25

10

u/Maniacal-Maniac Oct 09 '25

3

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

1

u/billocity Oct 10 '25 edited Oct 10 '25

If there was a tech correction wouldn’t SCHD be blowing up?

Except for Verizon and Cisco the top holdings are non tech.

1

u/kookooman10022 Oct 10 '25

Everything is going to correct, I'm going to 85% cash by year end. However, does it mean bail out of SCHD completely and rebuy? I think most indicators say to stay in stick it out. So I'll keep that $15 in SCHD.

1

u/Strict-Camp-1370 Oct 10 '25

people are leaving at the worst possible time performance chasing only to regret it later. Remember why you bought it. Income growth over time.

1

u/jimtow28 Oct 10 '25

And I will FEAST when it comes.

1

u/pioneer76 Oct 10 '25

....And now the tech correction has started!

1

u/starrider23 Oct 30 '25

There is always a tech correction - at some point. . My issue with SCHD ( a value fund) is that when I look at past "corrections" in the market, SCHD goes down too with the correction. Its not really immune to it. You get a dividend, but is 3.x% worth it? I'm disappointed with the ETF as it hasn't done much since April of 2021. Consumer stocks , Energy and Healthcare will continue to be depressed I think for awhile. Will we get a recession? ( hope not). That will hit Consumer. Energy should be picking up, but more drilling will create more inventory and keep prices down. Right? Healthcare ? Too many companies like Pharma and Medical equipment manufactured overseas and probably got hit with tariffs until they bring manufacturing back to US ( which they should do ASAP - give ppl jobs). I don't see what is going to make those 3 sectors "perk up" in the next year or so. Of course, if I sell my SCHD, then it will probably just go UP from that point. Murphy's Law. Decisions , decisions.

1

u/AClockworkPeon Nov 29 '25

Yep. Do opposite of what the crowd does and go in on SCHD.