Buy, Sell, or Hold SCHD?
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has always been one of the most well-constructed dividend exchange-traded funds (ETFs) in the industry. Its screening process, which considers balance sheet fundamentals, dividend history, and yield, offers one of the most comprehensive strategies designed to identify the "best of the best" dividend stocks.
From its inception in late 2011 through 2022, the fund put up a stellar track record. But the dominance of megacap tech stocks from 2023 to 2025 put dividend stocks firmly out of favor, and its performance suffered. Thanks to a broadening of market gains, 2026 has marked the return of the Schwab U.S. Dividend Equity ETF as a leader within the dividend ETF category.
The long-term investment case for this fund is fairly straightforward, but it's not always that simple. The focus on income, quality, and value disciplines is attractive. Whether or not investors should buy it right now, however, depends on where the economy is headed and whether the trend toward artificial intelligence (AI) stocks is here to stay.
Source Fool.com
