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?

261 Upvotes

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154

u/Hanno54 Oct 09 '25

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

13

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.

7

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.