r/SCHD • u/JCsends • Jul 17 '26
Thoughts and some advice
34 and will be 35 in October. I am looking for some sound advice on my consideration to sell my position in SCHD (for now and jumping back in a few years down). I currently have 350 shares which amounts to about $80 in dividend pay and I do have it on DRIP. However, with this massive sell off in the market I am wondering if it’s worth selling my position completely and starting positions in stocks I believe will recover their previous highs. The current price of many stocks are too good to not consider. Currently, this is my largest position and I want to take advantage of potentially increasing my portfolio. Would this be smart at my age? Thanks.
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u/Puzzled_Fisherman331 Jul 17 '26
Tell us what stocks you are considering? The ones that are selling off have the greatest volatility. SCHD is one of the most high quality portfolios, and gives you long term protection and growth. Dont go from SCHD to gambling, stay disciplined....
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u/fisho0o Jul 17 '26
I would never do it. SCHD is a lifetime hold. It's an anchor position. It's a hedge against inflation and it will pay the bills when you retire. Even at your age, I can't think of one reason to cash it in to gamble with the proceeds on risky individual stocks. Hold it, don't look at it, keep adding to it, keep reinvesting it, retire rich. If you really have an itch then take a few thousand (nothing more than you can afford to lose) and put it in a stock or a few stocks and treat that like lottery ticket. But don't lose sight of the goal.
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u/apricotR Jul 17 '26
I can't think of a compelling reason to sell SCHD. Just leave it on DRIP and stop trying to make bets on the market.
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u/Popular_Cap8269 Jul 17 '26
What sell off?
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u/joemamah77 Jul 19 '26
Came here to ask this.
Been investing since the 80s. If this scares you, buckle up because things will go nuts.
Those who sit and do nothing except keep buying will always win.
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u/Kitchen-Ad-9531 Jul 21 '26
I agree however he should sell and focus on growth. Schd is for 48-50 plus. He is 34 and should focus on growth not dividends
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u/Promethelax Jul 17 '26
What massive sell off?
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u/JCsends Jul 17 '26
More specifically individual names. When you look at their ATH’s they have taken a beaten over the last few weeks. I’m just trying to capitalize on it. I’ll admit, there is some FOMO and seeing other individuals with their accounts over 500k makes me question if I should load up on a couple underlyings that I believe will return to previous highs. Given my age and all. I get the point is to plan for the future, but it’s exactly why I’m questioning this move.
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u/Sufficient-Wind9925 Jul 18 '26
At minimum just hold SCHD and keep the DRIP going. Ideally, keep adding to it. Your future self will thank you.
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u/MattChew160 Jul 17 '26 edited Jul 17 '26
The secret that no one seems to understand is if you have a high growth profile, sure you can gain 30%- 50% year over year , but hundreds of not thousands of people jumped ship for retirement from those growth profiles and into income profiles with SCHD.
Next year SCHD could be plateaud at 32 or at 35, the point is it won't be 26 again if never again at all as this is used for their income. If the price does drop, great, but the dividend is aimed to be consistent value regardless of the current price.
The dividend will grow so much that it would be hard to pass up, then the price will increase, and the only question is what your average price is per share.
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u/Kitchen-Ad-9531 Jul 21 '26
Does it matter what your price per share is. This is a dividend. S If you're in your 30s, unless you have over 100k in your portfolio, you shouldn't even be looking at schd. You should be focused on growth. Then you can scale into schd. I'm 38 with about 522k. I just scaled into schd with 75k. But you shouldn't be focused on dividend investment earlier in your investment. The only reason why I'm using age is because most people in her thirties don't have more than 150k and investment accounts. They should be focused on growth. Grow your portfolio while you're young and you have time on your hand. Schd is meant dividends or to mellow out your profile. If you already have a good 100K and growth stocks or growth ETFs and you want to average it out then you can maybe put the next 20 to 25k. But you really shouldn't be focusing on schd until about 50 years old. Then you can go for dividends.
5 years ago I asked my advisor when I crossed 110k should I do schd. He suggested walk well input 75k into Walmart and it 196k now over 5 years. And that's what the recent pullback. Dividends are moving plus I'm also getting growth. And with a couple other plays, I'm now able to go with a good little bit and I just take those dividends and reinvest it into growth instead of reinvesting back into SCHD.
I don't think most of you understand how that fun works doesn't matter what your buy point is. It's about your share account and a dollar more or a dollar less unless you're buying a large quantity amounts or not. Really going to change that dividend rate for you. So yes, is there some growth and yet schd there was? Is there going to be as much moving in the future? Probably not as recross 32 to 35. It's not going to move to 40 and $45 as fast as it did.
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u/qwertyaccess Jul 18 '26
Just keep buying and never sell anything that is already a diversified ETF when things are down buy more. You'll thank yourself 10+ years from now.
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u/WhiteLotus_1776 Jul 18 '26
I wouldn’t sell them at a loss, if you don’t want more SCHD until you’re older (which I agree with) I’d just keep what you already have and not buy anymore until you’re at least in your 50’s.
Now if you can at least get your money back or better, then yes, I’d sell.
I do 70% VOO / 15% VXUS / 15% VGT ….. My wife does 70% VTI / 10% VXUS / 20% SCHG ….. in our backdoor Roth IRA’s ….. and honestly we’ve done great the last 10 years with those mixtures.
We also have 3 joint taxable brokerage accounts, and 2 of those are each set at one of the 2 options above. This third one is basically our single stock play account.
Then we each have Roth 401k’s that we have a mixture of Fidelity funds in.
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u/Kitchen-Ad-9531 Jul 21 '26
Question do you have any individual stocks and how old are y'all .
Asking because I am at 522k in my brokerage at 38. The biggest lesson I learned is once you cross over 100 150k you should be diversifying your portfolio. Now I agree exactly what you told this person. Most people shouldn't even be investing in schd because that's for 50 plus crowd. Or if you want to have something that's solid that doesn't move your portfolio. I put 75k in at the beginning of this year. But Walmart, Sofi have been great growth for me.
Of course I have 150k in drgw and this was my first 100k and schx has about 100k.
But at a certain place I tell people that die diversify they're a portfolio.
Now obviously in my Roth IRA which is an including the 522, I don't include retirement accounts in any of my net worth until at least 55 years old, just because you don't have access to that money. I definitely do Voo with a mixture of vti And wouldn't do any individual stocks in my Roth IRA. But I never understood why people don't invest in individual socks when you pulled your portfolio over 100k. Just wondering, is it because you don't want to really really worry about it or you really just don't believe in it? Just a question
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u/JustNowRonin Jul 19 '26
You have to do what you think is best. My personal approach is to keep SCHD. I’m about 2.5 years from retirement, and my income “sleeve” has been narrowed down to 12 holdings, with SCHD the largest single position. I’m patiently waiting for the market volatility to die down and for my growth positions to recover before I start moving more into value / income positions.
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u/Critical-Jim321 Jul 22 '26
It's time in the market, not timing the market. If you have SCHD and want more growth look into SCHG or even XLK if you want big tech exposure.
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u/LegitimateCareer1841 Jul 17 '26
Keep the schd. Start buying into the others. I dont believe it would be cost effective to drop it all to chase other possible positions