SCHD ETF Performance: Moderate Buy with 9.67% Upside Potential
ByAinvest
Tuesday, Jul 8, 2025 10:58 am ET1min read
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SCHD's performance can be attributed to its underlying holdings, with Coterra Energy, Huntsman, and Halliburton being among the top stocks with high upside potential. These companies are known for their strong dividend growth and are well-positioned to benefit from the current economic conditions.
Despite the recent decline, SCHD's long-term prospects remain promising. The ETF has a forward dividend yield of nearly 4%, making it an attractive option for income-focused investors. Additionally, SCHD's expense ratio of 0.06% is one of the lowest in the market, allowing investors to keep more of their earnings.
However, SCHD has lagged behind the S&P 500 in recent years due to its lack of exposure to technology stocks. To mitigate this risk, investors may consider diversifying their portfolio by adding exposure to sectors like REITs, BDCs, and midstream infrastructure [1].
In conclusion, while SCHD has experienced a recent decline, its long-term prospects remain strong. The ETF's attractive dividend yield, low expense ratio, and strong dividend growth track record make it a solid option for income-focused investors. However, investors should consider diversifying their portfolio to mitigate the risks associated with SCHD's lack of exposure to technology stocks.
References:
[1] https://seekingalpha.com/article/4799450-supercharge-schd-etf-with-big-dividend-machines
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The Schwab U.S. Dividend Equity ETF (SCHD) is down 0.28% in the past five days but up 6.44% over the past year. TipRanks' analyst consensus rates SCHD as a Moderate Buy with an average price target of $29.68, implying an upside of 9.67%. The ETF's top holdings with high upside potential are Coterra Energy, Huntsman, and Halliburton.
The Schwab U.S. Dividend Equity ETF (SCHD) has shown mixed performance in recent months. Over the past five days, SCHD has declined by 0.28%, while over the past year, it has appreciated by 6.44%. Analysts from TipRanks have rated SCHD as a Moderate Buy, with an average price target of $29.68, indicating a potential upside of 9.67% [1].SCHD's performance can be attributed to its underlying holdings, with Coterra Energy, Huntsman, and Halliburton being among the top stocks with high upside potential. These companies are known for their strong dividend growth and are well-positioned to benefit from the current economic conditions.
Despite the recent decline, SCHD's long-term prospects remain promising. The ETF has a forward dividend yield of nearly 4%, making it an attractive option for income-focused investors. Additionally, SCHD's expense ratio of 0.06% is one of the lowest in the market, allowing investors to keep more of their earnings.
However, SCHD has lagged behind the S&P 500 in recent years due to its lack of exposure to technology stocks. To mitigate this risk, investors may consider diversifying their portfolio by adding exposure to sectors like REITs, BDCs, and midstream infrastructure [1].
In conclusion, while SCHD has experienced a recent decline, its long-term prospects remain strong. The ETF's attractive dividend yield, low expense ratio, and strong dividend growth track record make it a solid option for income-focused investors. However, investors should consider diversifying their portfolio to mitigate the risks associated with SCHD's lack of exposure to technology stocks.
References:
[1] https://seekingalpha.com/article/4799450-supercharge-schd-etf-with-big-dividend-machines
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