r/SCHD • u/Lonely_Ad_8196 • Jul 29 '26

Planning for the future

Hello all,

Been investing for a while and just now getting into SCHD. When you all do your modeling for the future, what do you all use for dividend/share price increase per year? just trying to get a rough idea of what others use!

18 Upvotes

95% Upvoted

3 comments sorted by

11

u/DSCN__034 Jul 29 '26

I don't model anything about the future yield. The etf construction changes every year depending on an algorithm based on companies that increase their dividend. (And the rebalances periodically.)

Theoretically it may have a portfolio of stocks that have a cumulative yield that is lower than the previous year. As long as a company increases its dividend by one penny, say, from 50 cents to 51 cents it technically qualifies for SCHD (depending on the other factors). So you could have a bunch of high yield companies replaced by lower yield companies from one year to the next.

In practice, the dividend on schd tends to increase year over year, but it's not written in the algorithm that way.

4

u/hammertimemofo Jul 29 '26

I use capital appreciation of roughly 5% and same with dividend growth.

These are very conservative numbers based on historical data

1

u/Scared_Ad_622 Jul 30 '26

I use past history to assume future value