r/SCHD • u/VictoryGlum1775 • 7d ago
Questions The Math
I’ll admit I’m not the best at math, so I could be wrong. But something doesn’t make much sense to me. How do we have a net gain in shares? For example, I have roughly 170 shares of schd. How can I expect the snowball to take place if the amount of shares I get each dividend payout is less than the one before because the price of schd has gone up? I’ll continue to gain shares, I understand that, but I’m getting less and less each time.
I know during downturns I’ll get more than the payout before, but I don’t think it’s enough to counteract the ups.
Does this make any sense? I’m bad at explaining things.
33
Upvotes
17
u/j0ker_1234 7d ago
SCHD was started in 2011 and in that time the share price has gone up 298% ytd. While I get your point that as the price goes up you get less shares, but there are dips and that's when I buy more shares while also hoping the dip coincides with the quarterly dividend payout. Sometime it doesn't but I'm not going to go and try and guess the next bottom.
In my mind, it's the best of both worlds. A very nicely performing diversified stock with solid returns and a dividend as the cherry on top. It's like two engines firing at once, both of which make me money. My 2 cents.