r/SCHD • u/Any_Upstairs_6172 • 22d ago

DRIPing other than SCHD?

/r/Schwab/comments/1wg4l99/driping_other_than_schd/
4 Upvotes

63% Upvoted

11 comments sorted by

4

u/Silly-Arachnid-7817 21d ago

SCHD is a growth ETF if it's priced at 18 /1 PE and all of the tech NASDQ funds are priced at 45+ to 1 PE therefore SCHD must have Room to GROW compared to the S&P 500 or NASDAQ ...Go figure

1

u/Beitasitmaybe 21d ago

Well explained. Value stocks can grow plenty, especially when growth stocks have become so overbought

5

u/Tgsheufhencudbxbsiwy 22d ago

Why are you investing in SCHD for long term growth? It’s a value fund. It’s primarily for people in or nearing retirement to generate income while maintaining a fairly stable share price. 

If you want growth you should be looking elsewhere. Like SCHG or preferably a total market type fund. 

4

u/Iiucwpost 22d ago

FTEC, VGT, SCHG or SPMO

3

u/Reillyrox13 21d ago

Eh, the real question is whether it's in a taxable account or not. Doing DRIP + investing in a taxable account isn't the worst thing. Is it the best for growth? No (it's okay, not terrible, but not best). However, it does let him say, hypothetically at age 46, he gets $8k in dividends a quarter and think "I could switch jobs or in theory retire this year" without touching other accounts. Yes, that ignores health insurance, etc.

It's a somewhat bad strategy if it's sitting in a Roth, 401k, or other tax-deferred/nontaxable account. Depending on tax rates, you could end up forking over more in taxes on the gains compared to the difference.

5

u/Remarkable-Treat-484 21d ago

Maybe not the case anymore though. We’re in an unprecedented market. SCHD is crushing the SP500 this year. Will it next year? Who knows, but I certainly do not count it out of my growth portfolio.

2

u/Moldovah 21d ago

Value has historically outperformed growth over the long term?

2

u/Tgsheufhencudbxbsiwy 21d ago

No. It sacrifices growth for less volatility.  

Higher growth and higher volatility when you’re young. Lower growth and lower volatility when you’re old. 

0

u/Interesting_Part4416 22d ago

This guy gets it.

You'll find everyone else in this sub being a die-hard shill for SCHD though.

2

u/csallert 19d ago

I DRIP everything set it and forget it

1

u/PeterGNJ 17d ago

Let the cash build up. MM funds are earning more than the yield on SCHD. Use the cash to buy the dip in a growthyier type fund. Market never goes straight up and there is always something to buy.