Schd a good buy for long term investment

SCHD is a compelling choice for long-term investment, and here's why:

1. Consistent Dividend Growth: SCHD's strategy focuses on companies with a proven track record of increasing dividends. This is a positive sign for long-term investors as it indicates a commitment to returning value to shareholders over time.
2. Strong Financial Fundamentals: The ETF prioritizes companies with solid financial health, including low debt levels and high return on equity. This reduces the risk of dividend cuts and ensures the potential for future earnings and dividend growth.
3. Diversified Portfolio: SCHD holds a diversified sector allocation, which enhances resilience and reduces the impact of market volatility. This diversification is beneficial for long-term investors as it spreads risk across different industries and market conditions.
4. Attractive Dividend Yield: The ETF offers a high and growing dividend yield, which is attractive for income-focused investors. The consistent increase in dividends provides a powerful compounding effect over the long term.
5. Low Expense Ratio: SCHD has an ultra-low expense ratio, which means more of the investment is working for the investor rather than being consumed by management fees. This is particularly beneficial for long-term investments as it allows for more capital to be accumulated over time.
6. Performance Track Record: SCHD has delivered strong returns, outperforming the S&P 500 over the past five years. This performance, coupled with its strategic focus on dividend growth, makes it a strong candidate for long-term investment.
7. Institutional Confidence: Institutional investors have shown confidence in SCHD, with several making changes to their positions in the ETF. This can be a positive signal for retail investors as it suggests that professionals believe in the ETF's long-term prospects.

In conclusion, SCHD's combination of consistent dividend growth, strong financial selection criteria, diversified portfolio, low expense ratio, and historical performance make it a robust choice for long-term investment.