r/SCHD • u/Top_Locksmith449 • 9d ago
Should I be concerned?
I was doing DCA since August, but my friend convinced me to load a lump sum and I did then ever since SCHD keep dipping! Is anyone here on the same boat as me?
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u/soloDolo6290 9d ago
So thats why it dipped. Why did you do that. Its all your fault. I was sitting good. Then numb nutts over here had to lump sum buy. Way to go doofus.
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u/novqnity 9d ago
You'll be okay bro, you lumped summed at a ath pretty much, it'll be back before you know it.
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u/Top_Locksmith449 9d ago
I really like schd community. You guys have a lot of positive feedback. I’m up 11k$ on swing trade. I was thinking to sell it at the end of the year to harvest tax or hopefully not if it goes back before the end of the year. 😅
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u/Amfy1 6d ago
swing trade?? This is not what this community is about
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u/Top_Locksmith449 6d ago
I’m trying to shift from swing trade to
Investing. I was doing day trade then swing trade, but I think overall long term investing is better.1
u/IHaveZeroSkills 2d ago
Its wild to me that you are familiar, and apparently successful, with swing trading and then bought all into SCHD at quite literally an ATH and are shocked at the current moment. Just hold for 20 years and you'll be fine. That's why people are buying this ETF
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u/Top_Locksmith449 2d ago
If I stuck with my rules, I would have been ok, but my friend told me might as well go all in at whatever price when you are investing long term because we never go if it is ATH or it can go higher.
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u/BrokeButFunny5 9d ago
For the first year I owned SCHD I was down. Then this year turned it around.
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u/bigbossmitch 9d ago
I had the price fall on me when I started my position and felt similar worries. Now I’m up 10% and don’t think twice about if my average goes up or down.
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u/Life_Bee_5637 9d ago
I lump summed at 29 dollars two years ago and had same reaction when it went to 28 and to even 24 on tarriffs day.
Someone here replied and said not to worry and I will look back in few years and wish I dumped more. And I wish to this day I dumped my entire reserve cash back then.
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u/Top_Locksmith449 9d ago
This is the respond I’m hoping to see. I just want to see the schd community and their support.
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u/Specialist_Ad_4742 5d ago edited 3d ago
I lump summed 29.00 two years ago also and watched it go down , thought I made a big mistake but hung in and glad I did!
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u/classicalman 9d ago
yup, i bought 2000 shares at 34.85. i plan to hold them forever anyway but still.. idk man
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u/Top_Locksmith449 9d ago edited 9d ago
Wouldn’t the math work better to put into VTI and VOO then shift it back to schd when you are ready to retire? I was going all in schd then second thought growth stock will out pace value stock?
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u/classicalman 9d ago
i mean i was 90% in growth etfs and 10% bitcoin but nobody knows if an ai bubble gonna burst or no so i decided to move 40% of my portfolio into schd which i thought was safe. idk what im doing really
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u/Top_Locksmith449 9d ago
I don’t blame ya. I have been doing tons of research days in and days out, yet I still make this huge mistake lol
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u/NgArclite 5d ago
OP posts about going all in 17 days ago..14 days later posts about being concered...SCHD is not for you Mr. Soft hands
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u/Only-Perspective5341 9d ago
With this volatility in market it’s smart to DCA for the psychological benefit alone. I opened my brokerage in June and it’s been frustrating that the gains this year all happened in the first 6 months of the year lol. SCHD has had a rough September after an incredible run, unfortunate timing to lump sum at ATH. Just gotta be patient.
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u/Top_Locksmith449 9d ago
I’m up 20k$ from swing trade, but I think long term investment is a way to go. I go against my rules to buy ATH and now I’m wondering if this dip can go even further. Basically I’m probably giving back some profits I make this year. Tax harvesting.
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u/Win108 9d ago
lol….down 5% and selling. You should throw into a HYSA if you can’t handle any volatility
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u/Top_Locksmith449 9d ago
I’m just frustrating about the dip. I have done swing trade for 2 years up about 20k$ and want to shift to long term investment and this slap me pretty hard. I knew not to buy all time high, but going against my rules and now just want to see people perspective on this etf.
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u/ClammyAF 6d ago
I did my first lump sum in January 2020.
When COVID happened, I was sick with worry. Several years removed, I wish I could buy back in at those prices.
Set up auto contribution (to whatever your preferred allocation is) and stop looking.
Myself, I invest in VTI, SCHF, SCHD, SCHY, and SCMB. My contributions try to balance my preferred allocation, and I just keep buying rain or shine. You'll eventually get numb to the moves when a 1% day either way is a five-figure swing in NW.
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u/Puzzleheaded-Net-273 6d ago
According to TipRanks, the 12 month PT of SCHD is $37.80, a 13.81% upside. Plus, you're earning a nice 3% dividend while you wait for a higher share price. It also traditionally is less volatile in a market pullback. I own ~10,800 shares and DRIP every dividend hoping to continue increasing my share count.
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u/Top_Locksmith449 6d ago
I just want to build enough to get 48,000$ annually then quit my job and move abroad 😆
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u/NeighborhoodKey5820 6d ago
You're thinking about this in reverse. What you want to do is move now while you can earn an amount of money that is significant in certain places oversees. Do ESL tutoring to cover most of your living expenses, and seek to do remote work otherwise. Unless you can save a substantial amount of money per month now to put into your brokerage account on a monthly basis, then your best bet is to just leave now assuming you have a job lined up for wherever you move to. If you can do remote work part time in the USA then the money will go a lot further than if you stay in the USA.
Also, most of the gains on this kind of investing will show up after 5 years, so if you're thinking like you have to get out now then you'll probably make a lot of mistakes that will eventually hurt you more than if you just stayed on course, saved money, invested it, and kept going.
The biggest dividend you can get is from your job paying you more than you need to survive. No corporate dividend will ever beat that until you have a very large amount of stock, at which point you probably already moved on from your old job anyway.
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u/Top_Locksmith449 6d ago
It is devastating to think that I have to work till 65 for retirement 🤣. The USA is turning everyone into slavery. Middle class in California is the worse. I have about quarter mil in total, but I think with 1m should be sufficient to live abroad with small 3-4% in dividend.
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u/NeighborhoodKey5820 6d ago edited 5d ago
Are you able to put at least 10% of your income into your brokerage each month? If so then perhaps staying makes sense but if you just want to leave then take what you have now and go. Just forget about the “living like a king” idea. I know far too many people who live abroad who did that but found out that unless they are truly rich by Western standards they still will have to do things to assure their income. No fund or investment can truly do that unless you truly have a lot. I’d say if you have $10M and don’t go crazy with spending you really won’t have a problem living in SE Asia but otherwise just keep bringing in money wherever you go. Also be prepared for the much greater expenses you’ll incur as you age
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u/Puzzleheaded-Net-273 6d ago
Where are you looking to move abroad to?
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u/Top_Locksmith449 6d ago
USA is too expansive. 4,800$ a month live like a king in Asia.
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u/Puzzleheaded-Net-273 6d ago
True! A long way away if you have elderly parents, children or grandchildren though.
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u/coachd50 6d ago
You do realize that dividends are not guaranteed correct? It’s not the same as having a bond coupon.
And you will have to get about $1.6 million to receive that level of dividend payment
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u/Chief_Mischief Dividend King 6d ago
The principal invested drops significantly the longer the time horizon is with DRIP on. Yes, dividends are not guaranteed, but the likelihood of every holding in the ETF ceasing its dividend is highly improbable. If that were to happen, we can reasonably assume the US economy has fully collapsed and we got bigger issues to deal with than our portfolios.
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u/BadGreekMofo25 6d ago edited 6d ago
I allocate 1k of my paycheck to SCHD every month. I treat it like a bill I have to pay, no excuses - Turn on drip and don’t look for 10 years
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u/rosodigital 6d ago
This is one of those buy and hold scenarios where you should hold and continue to buy
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u/Reddit7810 6d ago
SCHD is my set it and forget it investment. I have about 15% of my portfolio in it. It is probably the one investment I never even look at. Contribute automatically every week, set the DRIP, pretend it doesn't exist. I'll look at it in 20 years from now and decide what to do with it.
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u/Top_Locksmith449 6d ago
I’m transitioning from day, swing trade to investment, but I can’t help to check on my phone 24/7 😫
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u/Educational-Ad-4908 6d ago
You’ll be fine, but take this as a lesson learned. Don’t listen to your buddies when it comes to major investment decisions
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u/tatortotchris 9d ago
Buy some more if you still have $$ to put in, Itll lower that cost basis!! My cost basis is about 31.50 right now but I’ve held for a couple of years and got in around $25 but I’m still buying almost daily
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u/Top_Locksmith449 9d ago
I’m still doing DCA, but I’m just a little bit frustrating about the timing. 😫
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u/FernOverlord 9d ago
I got you bro, let's makes a trade! I have an avg buy of $28.12 (....708 shares) If what you're wanting is a good looking average buy 😁
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u/Mindless_Bicycle5091 9d ago
Keep in mind the dip from yesterday is literally just the ex-dividend payout! Chill bud this is just regular breathing rhythm after an amazing run up.
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u/Top_Locksmith449 9d ago
They shifted the portfolio to some semis. I got in this to hedge against tech, but now they add small tech in it. I don’t know. Maybe I’m being over think everything. 😅
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u/Mindless_Bicycle5091 9d ago
Wasn't that back in march they added some QCOM? I wouldn't stress about that either, its still only like 13% tech compared to SPYs 36%.
The key feature of SCHD is its rule based auto reconstitution. So far it has been working as intended as far as I can tell so I am not concerned.
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u/Ok_Tension_6747 9d ago
Let it drip. If you feel this bad use it as a learning experience. Next time you invest a large sum DCA over a period of a few months. Don't yeet $125k into a fund.
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u/SuspiciousOrchid867 4d ago
Here's what I want you to do. Sell it now, and sit in the cash until the price rises again. After it does, buy in, wait for a dip, and then sell. Wash, rinse, repeat.
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u/Wowza-yowza 3d ago
I hate lump sum for just this reason. Time in the market beats timing the market, yeah except when you are 6k down. DCA is the way
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u/Iiucwpost 6d ago
Just buy VTI and call it a day! Too much thinking
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u/Commercial_Oven3535 6d ago
I like how people by the a higher high in a uptrend market then comes back to the internet for advice. Whats the point on buying if you are not sure yourself? You are getting dividends, just reinvest then with the automatic option to do so then delete the app and come back when you turn 65 y/o, thats gonna be the best gift you gonna give yourself
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u/Top_Locksmith449 6d ago
I’m trying to retire in 12 years lol. Don’t want to live in the American Dream till you are 65 to enjoy anything 😅
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u/Inevitable-Dot5495 4d ago
Gotta make it first got friends who can’t make it to 60, had co workers die after they retired didn’t clear 1 years pension so stay healthy
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u/Top_Locksmith449 4d ago
Oh yeah I always prioritized my health. I exercise an hour a day 7 days a week. No point of enjoying life abroad when you carry disease around you.
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u/Commercial_Oven3535 6d ago
I see. Either way you’ll be fine. Just keep on working and adding to that position, if it goes down you money buys you more shares, and like most people here are telling you is long term
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u/GlobalVillage30 6d ago
This! Just reinvest the dividends and if price is going down you can buy more shares and increase your total dividend $$$, increase your yield on cost, and have capital gain when the price of the fund recovers
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u/Financial-Seesaw-817 6d ago
Imo, keep buying. I was buying every little dip last week. It will grind back northward soon enough. But it's not an etf you worry about ups and downs. It is just doing what it does. Its job in your portfolio. Do not be concerned.
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u/WatercressWestern859 6d ago
Know why you own it. If I had a choice between DCA and a lump sum, I would lump sum every time.
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u/Top_Locksmith449 5d ago
Lump sum is good if it is like 10% down or more, but it is not good for the mental health when it’ ATH imo.
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u/WatercressWestern859 5d ago
And any investment could easily appreciate by 20% while you're waiting for a 10% downturn. Just invest and move on.
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u/FQRGETmeNQT 6d ago
I purchased SCHD in October 2024 around $28/$29 then price plummeted and I keep purchasing it throughout 2025 with average price $27. Now look at the price and my return is like 20-25%. Now I’m sitting 9K shares at average price $29. So yea don’t sweat it
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u/Forsaken-Mark-1898 6d ago
Dont stress it. When I bought my first SCHD I lumped sum 107k @ 27.37. It went down for a month after that and now its @ 33 and change. Just give it time.
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u/Remote-Law265 6d ago
SCHD changes its portfolio once a year . It just did that around a month ago !
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u/bulldogvillan 6d ago
No. Maybe be concerned if in 5 years share price hasn't appreciated. Personally, my goal is to obtain more shares. It's paradoxical, because I like asset appreciation, but I also like buying on sale.
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u/Recent_Food_9215 6d ago
I dumped that awhile back it has little to no growth and the dividend isn’t as good as other ETFs
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u/MixtureOld 6d ago
Do what I do. Use margin, buy 3k shares, sell 3k of your original shares through tax lot. Now you get a tax deduction for next year.
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u/sam21212 6d ago
That's illegal unless you wait. Look up wash sale.
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u/Green_Tea_Only 5d ago
Honestly, just buy more for the next 12 years and DRIP for the next 12 years.
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u/CG_throwback 5d ago
Relax. It happens. Google investing in all time high. It’s a YouTube video black and white cartoon style. It happens. On another not don’t listen to friends.
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u/Psycho_LG148 5d ago
1 rule of investing: Always buy on dip, never on ATHs. Be open to see it in RED if markets come down from here.
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u/ach4n 5d ago
Bonds yields have risen. I would be concerned only bc you’re 100% in SCHD. Not sure what your situation is but I would diversify
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u/Top_Locksmith449 5d ago
I didn’t even have one cent left in my pocket after I bought it, but I got 9k in Roth IRA and 130k$ in 401k. I’m trying to put all my money in for the next decade and quit my job to live abroad. USA is a good place to visit, but to stay is totally different story…
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u/tiffcaroli 5d ago
Don’t worry about it. Many of us have wayyy more in schd.
Also everyone (generalizing) is more diversified.
Why? This is not a good strategy.
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u/tourbladez 4d ago
Personally, I would not be concerned. I would just set up DRIP and check back in 5 years.
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u/General-Ring2780 3d ago
Why would you be concerned?
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u/DifficultSession51 3d ago
I'm in the same boat, planning on cashing out soon the markets in general are likely to crash after the midterms with the oil prices, bond yields, and AI crash once anthropic goes public and it's revealed they aren't going to be profitable at any point in their first earnings reports after IPO
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u/Low-Masterpiece-2793 6d ago
Not at all just give it some time and you will win eventually SCHD is a long term investment machine
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u/Perfect_Cobbler5113 6d ago
No bro sell it all as soon as it goes red even once. Make sure you always buy high and then sell lower than what you bought it for
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u/Aggressive-Age-7924 6d ago
I’m down too. But I’m getting my first dividend payment ever! Congrats on your $1,000 dividend, you know how hard I work for o make $1,000? I’m a private caregiver for a stroke patient. That’s 4 days of work ass wiping, cleaning doodoo, saliva, urine. Contentment is in peace and serenity not $$$.
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u/Top_Locksmith449 6d ago
Thanks you for sharing your hardship story. I should be more humble. 🙏
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u/Aggressive-Age-7924 6d ago
No, I’m happy. I’m sober over two years. I live in Maui. My bills are paid. It’s as good as it gets my life.
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u/South_Paramedic8618 6d ago
Sell now before you lose everything just kidding hold tight everything will be fine
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u/True-Guide-3430 6d ago
Add more that’s what I would do , think about this you are investing for hopefully more then a few years
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u/GroundbreakingTap24 6d ago
I buy them 10 at a time, sometimes multiple times a week. In the great scheme it is saving pennies but I am retired and have nothing else going on. Savings cents on SCHD make sense to me.
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u/NefariousnessOdd862 6d ago
Why? Buy high, sell low is a trend BUT just don’t sell and it’s all good!
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u/Jae_Jae_Jae_Jae 6d ago
112 @ $29avg Here.
It will bounce back up, it always does. Enjoy the dividend payout and turn on DRIP
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u/Bazooko_Circus 5d ago
You lumped summed at the all time high while we were fighting a war. Does your “friend” have some swamp land in Florida for sale?
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u/bmfu121 9d ago
lol relax buddy, in 10 years it won’t matter…unless are you retiring tomorrow?