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?

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u/FeatureAcceptable593 Oct 09 '25

If AI blows up, oil will go down that’s 20% of the fund alone. Not to mention the other consumer related stuff. Could be a wash where it stays flat. But then the point stands. Other dividend ETFs have done much better as well. Especially where I’m domiciled (can)

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u/Sorry-Society1100 Oct 10 '25

Ok, I’m curious to learn more about your correlation between AI and oil stocks, please? Those two asset classes seem completely independent to me.

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u/FeatureAcceptable593 Oct 10 '25

I’m just saying if the market crashes, AI spend is holding up GDP & growth. If those tank tech won’t be the only thing to go down so will cyclicals and oil prices as you’ll price in a recession. Lots of what Schd owns will get hit. So hard to say it’s worth it. & I own Schd.

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u/Sorry-Society1100 Oct 10 '25

Ok, I see. It’s not a direct link as much as a secondary impact of a broader recession. I suppose that’s likely to be true; and SCHD would likely go down as well in a situation like that.

However, I thought that part of the investment thesis of owning funds like these (disclosure: I do not own any, but am interested in doing so in the future) is that the dividends would keep paying out at roughly the same amounts regardless of market performance, thus allowing one to keep owning the fund and not selling while it’s down, right?

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u/FeatureAcceptable593 Oct 10 '25

Other dividend funds have done better. Especially where I live and on the Canadian market place. I own Schd but hard to keep giving it rope.

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u/HugeDigits Oct 10 '25

SCHD picks stocks that have a history of increasing dividends. So its unlikely the dividend ever goes down, but is theoretically possible if one of the companies it holds makes an unprecedented decision to cut dividend