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SCHD: Not My Highest Yielder, But It May Be My Most Impor...
Dividend Collection Agency · 2026-06-17 · via All Articles on Seeking Alpha

Summary

  • I added Schwab US Dividend Equity ETF (SCHD) as a core holding for its reliable income, tax efficiency, and low cost structure.
  • SCHD offers a 3.25% yield, low 0.06% expense ratio, and has outpaced peers in dividend growth, though it has lagged the S&P 500 and tech-heavy ETFs in total returns.
  • Recent reconstitution increased SCHD's exposure to Technology and Healthcare, aiming for better performance in evolving market conditions and resilience during downturns.
  • Despite likely underperformance versus growth peers, SCHD’s diversification and income profile fit my all-income portfolio’s long-term goals.
  • I expect SCHD to deliver reliable income, serve as a portfolio anchor, and provide 8–10% returns, despite risks from inflation and sector underperformance.
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shadow of 3d charcaters with INCOME word.close up of shadow of 3d charcaters,Business Concept.3D rendering on red background.

fengdr/iStock via Getty Images

Introduction

If you follow my work here on Seeking Alpha, then you likely know my primary focus in investing is income. And recently, I started building an all-income portfolio consisting of higher-yielding ETFs.

Down the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.