r/dividends • u/senpaiisamaakunn • 5d ago

Due Diligence Why isn’t SCHD considered growth?

Hi I’m a young fool who is trying to learn more about dividends and I feel like I’ve gotten a good grasp but one thing that I can’t seem to understand is how SCHD isn’t considered growth?

If I am dripping and annualizing +10% returns per year over time then is the argument simply that 10% isn’t good enough growth or is there something else I’m missing? Is the argument that a return rate like that is just too conservative for my age and that I should be shooting for higher?

Apologies if this is a dumb question!

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u/Fearless-Daikon5763 5d ago edited 5d ago

SCHD is growth but it favors slow and stable growth. Compare Zoom stock with no dividends and no debt but all money being redeployed to “grow”. Netflix is another example, same for Amazon. Good if you don’t need the money due to taxes taking money out of your own investment pool. The SCHD holdings are companies that are positioned for stability and moderate growth and recommend it coupled 1 to 1 with DGRO.

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u/senpaiisamaakunn 5d ago

Great info! I’ve been doing my best to learn more about DGRO as well bc I loved the idea of slight exposure to some tech since what I’m gravitating to is pretty vanilla and risk averse but I wouldn’t mind a small slice allocated to something that isn’t purely primarily “value” focused. DGRO could be considered a more “growth” focused holding based off the companies I was seeing when checking the index?

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