Buying SCHD Is An Awful Way To Start The New Year

2026-01-02 16:38:13 ET

Those who follow my work closely almost certainly know by this point that I am very skeptical of many of the high yielding or even consistently yielding ETFs. I have consistently been bearish about one in particular. And that is none other than the Schwab U.S. Dividend Equity ETF ( SCHD ). This is viewed by many investors as a stable prospect that can generate reliable income. With the yield as of this writing of 3.79%, its objective is not to get the highest yield possible. Rather, it's to get a respectable yield that you can rely on. In my view, however, it is a horrible place to store your capital. Of course, there are some niche cases where I can understand it making sense. But overwhelmingly, I have maintained that investing in the market more broadly or even creating a portfolio of high dividend paying stocks that are still stable will yield better results....

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