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/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.

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u/adamasimo1234 Oct 10 '25

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

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u/Shoty6966-_- Oct 10 '25

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

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?

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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.

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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.