SCHD has become the holy grail of dividend equity ETFs amongst Dividend Growth Investors, almost unanimously. In 2023, I intend to put a significant amount of my investments into SCHD by participating in an SCHD Challenge in my ROTH IRA.
Watch and learn why this is such a beloved dividend ETF and I’ll show you my plan to build up my position in 2 of my investing accounts.
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This is the second part of my ROTH IRA Investing Series. I’ll be making my 2023 ROTH activity entirely transparent here on the channel. Accumulating lots of SCHD is a major part of the plan. The other half is Real Estate Investment Trusts, or REITs. This is perfect for this setup for 2 reasons. First, REITs pay non-qualified dividends are are ideal for a tax advanted account such as a ROTH. Second, SCHD is completely lacking Real Estate exposure, so this will create a nice balance.
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Investing in the stock market can be a daunting task for many, but dividend investing can make it easier for beginners. By focusing on companies that pay out regular dividends, investors can earn a steady income while also enjoying the potential for long-term growth.
One popular way to invest in dividend stocks is through exchange-traded funds (ETFs), which offer a diversified portfolio of dividend-paying companies. One such ETF is the Schwab US Dividend Equity ETF (SCHD), which is designed to track the performance of the Dow Jones U.S. Dividend 100 Index.
With SCHD, investors can gain exposure to a range of high-quality companies that have a history of paying dividends, such as Coca-Cola, Johnson & Johnson, and PepsiCo. The ETF also has a low expense ratio of just 0.06%, making it a cost-effective way to invest in dividend stocks.
To test the waters of dividend investing with SCHD, I decided to take on the SCHD Investing Challenge. The goal was to invest $1,000 in SCHD and see how the investment performed over a year.
After just a few months, I was pleasantly surprised to see that my investment had already grown by around 5%. While past performance is not a guarantee of future results, this experience has given me confidence in the potential of dividend investing.
One major advantage of investing in SCHD is that it can be held in a Roth IRA. This means that any earnings from the investment can be withdrawn tax-free in retirement. Furthermore, dividends received from SCHD can be reinvested automatically, which can compound returns over time.
While dividend investing may not be as exciting as other forms of investing, such as growth stocks, it offers a solid and reliable approach to building long-term wealth. With SCHD, investors can enjoy the benefits of dividend investing without having to pick individual stocks themselves.
Overall, the SCHD Investing Challenge has been a great way for me to dip my toes into the world of dividend investing. As I continue to invest in SCHD, I am optimistic about the potential for steady income and long-term growth.
You mentioned the rewards you have credited to your ROTH account from your AMEX Schwab Platinum card. Have you had to count the amount of these transfers against your ROTH maximum allowed contribution? (I’m thinking about doing the same thing, but because I’m retired, my allowed ROTH “contribution” is actually $0. Seemed like a possible way to get money into the account despite this problem).
SCHD dividends are qualified and REIT dividends are non-qualified
It’s not wise to hold REITS in a taxable account but rather an Roth IRA to avoid your dividends and gains being taxed.
My question is, what are the advantages of holding SCHD in a Roth IRA vs a taxable account?
Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
How do i ivest $20 or more a week in schd on the charles schwab platform?
So let’s say I’m funding my 2023 Roth IRA with SCHD come 2024 and 2025 am I still allowed to just keep contributing to 2023 Roth
I’m investing $12 a day Monday through Friday a total of 240 a month consistency
Thank you Nick, SCHD is a good candidate for my basket of stocks for this year.
I have extra cash to invest outside of Roth,is SCHD good for taxable account?
I just maxed out ira twice an will save an build for next year an this year personal account too. Invest anything $20-500
New Sub just for your fair reporting.
i like schd.
Are schd dividend payouts taxed as qualified or non qualified?
Delivering pizza one night a week won’t give you $125 dollars
What do you think about MLAIX beats both s&p500 and schd?
Love the video! I am personally investing in SCHD as well, Would you be able to release your google sheet? I would love to have something like this to track my year's investments too!
I'm holding 325 shares of SCHD in my TDA account. I DRIP and buy monthly. My pie chart is SCHD, SCHX, and SCHG. Now is a good time to buy while stocks and funds have been beaten down.
Im very happy with SCHD. I’ve been buying two shares per week for almost 3 years. I put about $20k in initially in 2020. Wish I would have bought more then but I own almost 750 shares today and I received $550 payout in December.
SCHD and SDY are my favorite dividend etfs. I have 20% in TQQQ to handle the growth, I just wait for it to grow and rebalance the profits back into my dividend funds. Dividend stocks have had a pretty good run the last quarter, I expect a major pullback soon as investors rotate into higher growth funds but that's fine because the dividends will keep rolling in. SCHD performs so well because it's not just a dividend fund it has some value metrics in how the stocks are chosen. Another good fund for dividends nobody seems to know about is VDIGX. It's probably the oldest as it's been around since 1992.
My roth currently is Fskas with fidelity only. Like you I started last year as well . I do 125 a week as well but only with FSKAS. I definitely want to start a position with schd in my roth.
This is the time to build a position in growth stocks dividend stocks now are expensive in my opinion that's what is going to be lower on 2024
From a tax efficiency perspective, Roth for Dividend investing if your yearly maximums for investing are already 5-10k, makes sense as the primary / preferred account for a SCHD, JEPI, etc. . For example; I max Roth yearly and it's Dividend and REIT focused (highly-tax inefficient funds), 401k is a boring 60/30/10, and Brokerage is for International holdings due to International Tax Breaks on earned gains and income for something like a VXUS or VWO. Great channel, keep up the good work.
Very interested in what REITs your going to choose
Hello …. unfortunately it is not trading on the UK stock exchange.
Mi "rothira" es 100% schd, feliz por que éste 2023 puedo aportar un máximo de 6.5k. Mi cuenta regular es 90٪ voo.
I do the same 95% schd and 5% stocks so i can feel like i am a bad ass investor
I am based in the UK so I can’t purchase SCHD would something like VHYL be a good substitute?
Schd is overpriced watch the drop
Buy some of SCHD top holdings instead
Hey dude great videos! I have only one question, where do you find these dividend summary?
Thank you.
Should we mix QQQ with SCHD for growth?
SCHD is great but SPHD is incredible
I couldn't buy it through m1 finance. pretty sure Imf and w e f are going to wipe us out.
I believe SCHD has unqualified dividends.
I only have one issue with SCHD as well as many other ETFs. They only pay once a quarter, and it seems they all pay on the same schedule. If you're only recieving dividends on a select schedule, what do you do on the off months at retirement?
Lost me at Pfizer
Great info brother. I have been loading up on SCHD also . I have it in my Roth paired with REITs O Company
New subscriber here
May the Most High continue to bless and prosper you in all that you do.
Just found your channel and you've got an extra subscriber from me, will be following this series
You're the first content creator I've run across who is building a Roth. Right on time for me!
Nice work man!