Schd stock is good or bad long term
9/7/2024 06:52pm
**SCHD is a good long-term investment.** Here's why:
1. **Consistent Dividend History**: SCHD focuses on high dividend yielding stocks with a history of consistent dividend payments, which is essential for income-focused investors.
2. **Defensive Position**: The fund's portfolio is designed to be defensive, with a concentration in mature franchises that tend to be more insulated from market movements.
3. **Strong Fundamentals**: The fund has a low turnover rate, which helps mitigate transaction costs, and its stock-selection criteria emphasize financial health and profitability metrics.
4. **Risk Management**: The fund's concentration limits and use of collateral for securities lend themselves to a risk-conscious approach.
5. **Performance Track Record**: SCHD has shown resilience during market downturns and has outperformed its benchmark over time, demonstrating its ability to generate long-term risk-adjusted returns.
6. **Technical Analysis Indicators**: The technical analysis of SCHD shows a Buy signal, with indicators like the MACD at 0.86 and RSI at 53.91 suggesting a positive outlook.
7. **Market Performance**: The fund's performance has been stable, with a Buy signal from its 8-day, 20-day, 50-day, and 200-day simple moving averages, indicating a bullish trend.
8. **Price Target Forecast**: The average price target for SCHD is $89.53, with a high forecast of $103.77 and a low forecast of $74.59, representing a potential upside from the current price.
In conclusion, SCHD's focus on high dividend yielding stocks with a history of consistent dividend payments, combined with its risk-conscious approach and strong performance track record, make it a good long-term investment.