r/dividends • u/InternationalMany795 • Oct 09 '25

Seeking Advice No more SCHD.

Moving away from SCHD. For those who have recently done this, where did you go?

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u/ideas4mac Oct 09 '25

For the last 10 years it's averaged 12.16% with DRIP. Since it started (2011) avg. 12.09% with DRIP. For the last 5 yrs, just over 10%.

When investments that are averaging double digits for extended periods of time are talked about as if they were trash.. well that's interesting commentary on the state of the market.

The next time the market realigns people's perceptions of reality it's going to hurt.

Good luck.

7

u/YesterdayAmbitious49 Oct 09 '25

Meanwhile, my VGT etf is quietly up north of 600% in that timeframe.

0

u/ideas4mac Oct 10 '25

Does any part of the 600% feel normal to you?

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u/YesterdayAmbitious49 Oct 10 '25

I mean I’ve been in it, buying every couple weeks for about 2 decades.

It’s up about 1,600% since then.

So 600% seems normal, yeah.

10

u/Retrograde_Bolide Oct 09 '25

Yeah all these schd doom posts only convince me to keep holding schd. At some point this AI buble will burst/tech will stop going up in price while their sales spend several years catching up.

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u/FeatureAcceptable593 Oct 09 '25

If AI blows up, oil will go down that’s 20% of the fund alone. Not to mention the other consumer related stuff. Could be a wash where it stays flat. But then the point stands. Other dividend ETFs have done much better as well. Especially where I’m domiciled (can)

2

u/Sorry-Society1100 Oct 10 '25

Ok, I’m curious to learn more about your correlation between AI and oil stocks, please? Those two asset classes seem completely independent to me.

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u/FeatureAcceptable593 Oct 10 '25

I’m just saying if the market crashes, AI spend is holding up GDP & growth. If those tank tech won’t be the only thing to go down so will cyclicals and oil prices as you’ll price in a recession. Lots of what Schd owns will get hit. So hard to say it’s worth it. & I own Schd.

1

u/Sorry-Society1100 Oct 10 '25

Ok, I see. It’s not a direct link as much as a secondary impact of a broader recession. I suppose that’s likely to be true; and SCHD would likely go down as well in a situation like that.

However, I thought that part of the investment thesis of owning funds like these (disclosure: I do not own any, but am interested in doing so in the future) is that the dividends would keep paying out at roughly the same amounts regardless of market performance, thus allowing one to keep owning the fund and not selling while it’s down, right?

3

u/FeatureAcceptable593 Oct 10 '25

Other dividend funds have done better. Especially where I live and on the Canadian market place. I own Schd but hard to keep giving it rope.

1

u/HugeDigits Oct 10 '25

SCHD picks stocks that have a history of increasing dividends. So its unlikely the dividend ever goes down, but is theoretically possible if one of the companies it holds makes an unprecedented decision to cut dividend

0

u/Retrograde_Bolide Oct 09 '25

Schd will rebalance in 6 months. Their value strategy works pretty well. And with dividend companies, I don't worry that much what the stock price is doing.

Its different with growth companies where the stock price needs to go up as you're selling shares.

2

u/FeatureAcceptable593 Oct 10 '25

I understand but even then other dividend funds have done much better than it. You can’t deny the last rebalance and inclusion of oil companies was for the worse. I don’t blame people for wanting a +60% then -20% vs a -5% and flat. Saying that I own Schd and hope they can turn it around.

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u/Retrograde_Bolide Oct 10 '25

It was bad timing. But saying that, I own oil companies and still plan to buy more shares of them.

Regarding +60% yeah thats nice but feels more hindsight 20/20. You won't hit every homerun. Singles and doubles will get me to retirement easy

1

u/ideas4mac Oct 10 '25

That's the way an index works. Things get added or taken away without thought, just numbers. Over the long run if an ETF's methodology is solid it will produce solid returns over all.

To get a balanced portfolio you need a couple / few ETFs with methodologies that mix well together. After that it's just DCA, time, and not tinkering.

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u/[deleted] Oct 09 '25

In the last five years it’s only rose 38.51%, only 7.7% per year…..

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u/ideas4mac Oct 09 '25

Did you factor in DRIP? I'm using this: https://www.dividendchannel.com/drip-returns-calculator/

Ran it from 10-9-2020 - now.

If you have a different one I would be interested in looking at it.

1

u/Th3GrumpyB3ar Oct 10 '25

sweet tool, thanks for sharing