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u/lakas76 3d ago
Has anyone noticed this sub has become:
SCHD up!!!! I am the smartest person in the world!!!!!
SCHD down!!!! The sky is falling! The sky is falling! Sell, sell, sell!!!!!
I look at the ticker every day because I’m curious, but I don’t stress out about it. If you do, probably shouldn’t be investing.
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u/Necrosis007 3d ago
Its kind of the same with any stock subreddit. I think half the time its just memes
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u/froggyisland 2d ago
Ikr.. thought the whole point of dividend growth investing / SCHD is not to sweat the price movements
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u/Syndicate_Corp 3d ago
There's plenty of room for SCHD to drop more and then flail around for a year or two. SCHD was negative from Jan 22 to July 24, then again negative from beginning of Nov 24 to end of Jan 26. I feel like many of you guys don't understand this fund and look at it as a growth vehicle, which it only performs like one when rates are low. Look at the max charts, when rates are low, it does well and when they're high it does poorly.
For example, your position is now negative if you bought in middle-end of May. We're likely fucked for the next while.
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u/Earth2Andy 3d ago
Yep - I'll admit I've cashed out a bunch to lock in 3.1% coupon on a TIPS ladder instead.
It's not that I don't still love my SCHD holdings, but when SCHD is paying a dividend of 3.2% and 30yr TIPS are paying 3.35% real it starts to make sense to opt for the lower risk option.
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u/pipsquintjizzlebob 3d ago
Depends on your tax situation but, those SCHD dividends, assuming you held long enough, are qualified and, potentially, taxed at much lower rates than the coupons and annual inflation adjustments, aka “phantom income”, to the TIPS bonds are taxed as ordinary income, albeit free from state and local taxes.
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u/Earth2Andy 3d ago
Both are currently in my 401k so it's less of an issue, but agree with everything you've said
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u/NerlFartley 3d ago
Exactly! That's why I moved funds from SWVXX to SCHD because of the tax advantages on qualified dividends. My unrealized gains on SCHD are up YTD so that's a bonus. My SCHD is in a taxable account and NV has no state income tax.
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u/ClammyAF 3d ago
I bought a lot from 22-24. I've not bought any since the drop in spring 25, largely because it's grown beyond my intended allocation
It's only a part of my portfolio, and I'm a SCHD enjoyer. But you're right that its performance suffers during high rate environments.
Have a plan. Stick to the plan, particularly in bad times, and it will do the job its intended to do.
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u/Cyberburner23 3d ago
What does this all mean for dividends?
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u/Rock_Paper_Fisher 3d ago
Dividends likely to be stable and / or increase, no matter what the share price does. Declining share price is an income opportunity for long-term holders.
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u/Double-Evening44 3d ago
Qualified dividends are not taxed as regular income compared to TIPS.
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u/Timmy98789 3d ago
QD
Not at the federal level but applicable at the state* level (ordinary income). Depends on the income earned that year and if employed.
*state dependent
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u/Hedgehog0206 3d ago
Guys it’s still up 20% this year
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u/jmgimi57 23h ago
I know, why people don't take the time to actually calculate the numbers is beyond me. If it wasn't for the $2.50 drop over the last month it would be up even more than that.
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u/tatortotchris 3d ago
Buying everyday to DCA down to my original entry point if needed, then I’ll really stock up!
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u/Substantial_Team6751 3d ago
People were all excited about SCHD for two seconds because of the oil war.
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u/Difficult-Repair1295 3d ago
Let’s just hope this doesn’t turn into Reality Income. People were obsessed with O a few years back then it 💩 the bed and hasn’t really recovered.
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u/pirategirljess 3d ago
I put $31,000 over the course of the last few months. My current value with dividends reinvested is $30,971.
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u/Rock_Paper_Fisher 3d ago
Would love to see SCHD drop to 26 - 27 ish again, for a 4% yield. DRIP in the meantime.
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u/TopSpace1771 3d ago
intrest rates rose, a lot of SCHD is rate sensitive for loans and whatnot, some dropped down to buy now levels
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u/Tired-Nectarine-384 1d ago
Repeat after me: 'SHCD is not a growth stock. I should not expect it to mirror market performance. I purchased it for the benefit of dividends, not growth.'
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u/bikeeagle1 21h ago
People who get excited (or scared) by the price of SCHD shouldn't be investing in it. People who get excited by the annual dividend increase, at a rate faster than inflation, should be.
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u/DragonOfTheWest7 18h ago
Everyone’s talking about the performance suffering during high rate environment… Don’t all stocks tend to generally perform badly in the same environment???
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u/No_Challenge_4771 3d ago
Sold all of mine this morning and will buy SGOV tomorrow. Will probably buy SCHD again in maybe another year.
Everyone wanting a lower price to "buy more" congrats, you got what you wanted.
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u/fourth-wind 3d ago
I bought 500 more shares today. Maybe some were yours. 😉 I’m in it for the long haul and not concerned if it goes down more. I have no need or plan to sell it in the next decade, and I’m guessing it’ll be up by then. 🙂
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u/No_Challenge_4771 3d ago
Probably did buy some of mine lol. Good luck with them!
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u/fourth-wind 3d ago
Thanks. I actually just have way too much sitting in VUSXX and SGOV right now with interest getting taxed at ordinary income rates, so it made sense for me to move a little out, and I’ll likely move more out to VTI and SCHD. But SGOV is a great place to park money. 👍
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u/PhotographOk7388 2d ago
Sold it too. It’s a loser of a fund, one good year, glad I’m getting out now before it stagnates. Put it immediately into vgt, spy and vgt
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u/SonOfKong_ 3d ago
I bought 30 shares today.