SCHD Dividend Stock ETF (The REAL Dividend Growth Rate)

The popular SCHD Dividend Stock ETF just increased their latest dividend distribution by 24%! However, is this dividend growth rate realistic? Today, I look at the numbers and analyze a more realistic look at the actual dividend growth rate that has occurred (and can possibly be expected going forward).
#dividend #etf #schd

0:00 INTRODUCTION: If everything goes according to plan, SCHD will become a Top 5-6 Core position for me.
0:25 Instant Dividend Stock Diversification
0:37 Only 30% overlap with my existing portfolio of 36 positions (37 positions with SCHD).
1:18 PPC IAN DIVIDEND PORTFOLIO OVERLAP ANALYSIS
1:27 29.09% Overlap, 70.91% Net New Positions
2:01 SCHD DIVIDEND DISTRIBUTION HISTORY ANALYSIS
2:13 The latest distribution was up 24% year-over-year, but let's have realistic expectations.
2:38 EXCEL ANALYSIS
2:58 The distributions fluctuate because the ETF holds 100 or so dividend stocks, that changes over time. Different stocks pay on different schedules.
3:33 Latest distribution vs. 1 year ago (24.0%) Don’t get so excited, we cannot look at just one quarter
4:09 Please connect with me on Twitter (X) and Instagram.
4:38 2024-to-date vs. 2023-to-date (13.8% dividend distribution growth)
5:51 My Strategy: I am utilizing SCHD to boost portfolio-wide dividend growth (enhance my long-term dividend yield on cost)
6:50 Last four distributions vs. prior four distributions (8.9% dividend distribution growth rate) - I believe this is a really realistic analysis for future possible dividend growth
7:39 Starting dividend yield is 3.67%
7:49 I'm buying because my yield-on-cost can go up over time
8:49 Dividend growth rates are slowing a bit these days, in this higher interest rate environment
10:00 2023 distributions vs. 2022 distributions (only 3.77%) - This was a very slow dividend growth period
11:00 It's important to be realistic with SCHD, the dividend may grow slowly during certain periods
11:14 5-Year Dividend Growth CAGR (12.9%) - Comparing last 4 quarters vs. comparable 4 quarters 5-years prior
12:30 Is 12.9% sustainable? Maybe if interest rates go down, again.
14:47 I'm personally thinking dividend growth will be around 8.9%, on average, but I'm hoping for higher.
15:23 PORTFOLIO OVERLAP ANALYSIS
15:35 SCHD METRICS ANALYSIS
16:25 I like to buy ETFs and stocks when they have not gone up a lot. I like out-of-favor, high-quality, value stocks.
17:40 TTM PE is 16.21, a fair value
17:56 Starting yield of 3.67%
18:07 Payout ratio of 59.5% (some room to grow dividend, but may indicate slower dividend growth)
19:41 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long SCHD. I own this ETF in my personal dividend stock portfolio.

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC.


Did you miss our previous article...
https://trendinginrealestate.com/commercial-real-estate/jlls-ceo-on-cre-and-data-center-investing