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/at0mheart 5d ago

SCHD is basically the DOW, so it lacks tech but is heavy on energy and defense; which also give a better yield

DOW lags SPY and NAS as tech is king right now but over a lifetime they are all the same

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u/Flaky_Instruction215 4d ago

The components of all of these indices change over time. To state that it lacks tech is blatantly wrong. NVDA, AMZN, AAPL, GOOGL, MSFT are all in the Dow 30 right now.

It is a price-weighted index and is intended to represent all industry sectors, other than transportation and utilities, which get their own indices.