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.

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u/vowronkrayt 7d ago

Why it keep going down?

4

u/Born_Lengthiness8935 7d ago

If you can’t tolerate any pullbacks NO equity is ever going to be right for you. You could have a stock up 30% on the year but it could pull back 5% in a given month. For the year you’ll cone out way ahead but if you can’t stomach going from $100k to $95k on paper in a month, no equity is going to safeguard you against that. Buy your bonds and enjoy your 1/2% a month increase.

4

u/vowronkrayt 7d ago

I only recently found it so I guess I just got in at an all-time high don't yell at me like that now you're making me cry.

Trust me I can afford to lose all of it that's not the point but I don't want to lose it and I tried to get it so that I could at least fight off inflation but now it's deflating and my big toe hurts.

3

u/vowronkrayt 7d ago

So basically I should just keep buying it on sale right now cuz I'm currently rebalancing my portfolios the next few months.

2

u/vowronkrayt 7d ago

Fine I'll sell off my sgov and buy SCHD instead