SCHD's fourth quarter dividend just dropped, and the moment I saw the number, I literally froze. Not because it's higher, but because it's the highest payout in SCHD's entire history at 27.82 cents per share. And when I looked deeper, something inside me clicked.
This isn't just another dividend update. There's a hidden message inside this number that most investors will completely miss, and honestly it hit me harder than I expected. After spending years stacking this ETF, watching it underperform, defending it, questioning it, doubting myself.
This payout told me a very different story about what's really happening under the surface.
這次的配息告訴了我一個完全不同的故事，關於水面下真正發生的事情。
00:31
So in this video, I'm going to break down why this dividend is way more important than it looks, what it means for SCHD investors going forward, and why, despite all the negativity, this moment has me more locked in and confident than I've ever been.
Disclaimer, I'm sharing my personal experience and opinions about SCHD and dividend investing.
免責聲明，我分享的是我個人對 SCHD 和股息投資的經驗與看法。
00:47
This is not financial advice, always do your own research and consult a licensed financial professional before making any investment decisions. Past performance is not indicative of future results. SCHD is paying 27 cents per share for the fourth quarter.
With the payment date hitting on December 15th, this dividend represents a year-over-year growth rate of 5.18% compared to last Q4. But where it gets really interesting is when we look at the full-year picture. When you add up all four quarters, SCHD has paid out $1 and 47 cents per share over the trailing 12 months. On a year-over-year basis, that works out to 5.35% dividend growth.
Here's the thing about SCHD that most people don't realize until they really dig into the funds history. The average yearly dividend growth for SCHD since the fund launched back in late 2011 is 11.09%. If we narrow the timeframe and look just since 2019, the average dividend growth rate has been 12%. Finding any investment fund that can consistently grow its dividend payments
at a double-digit rate over multiple years is extraordinarily rare. So when I see this year's 5.35% growth, my first instinct isn't disappointment. Instead, I look at the historical pattern.
SCHD tends to have these cyclical periods where lower dividend growth years are typically followed by higher growth years. Let me give you a concrete perspective. Over SCHD's history, annual dividend growth has fluctuated. Some years saw modest increases, while others delivered much bigger jumps. For example, total dividends rose from about 0.8860 per share in 2023 to roughly
0.9944 per share in 2024. That's solid year-over-year growth, and it highlights a pattern many investors miss. The fund's dividend increases aren't always perfectly steady, but over time, they consistently trend upward. These fluctuations are part of how SCHD balances stability with growth, letting reinvestment and compounding work in your favor. There's a reason for this
pattern, and it has to do with how the companies in the fund perform over different market cycles.
這與基金中的公司在不同市場週期的表現有關。
02:28
Over the long term, the trend is strongly upward. These lower growth years aren't failures, they're part of the natural rhythm of dividend investing. With this latest dividend announcement at 0.278 $2 per share, I can calculate exactly what my quarterly payment will look like based on my current share count. When I reinvest that dividend payment at the current SCHD price,
which is hovering around $27 per share, I'm adding a meaningful number of new shares to my position.
大約每股 27 美元左右，將這筆股息再投資時，我正在為我的部位增加可觀的新股數。
02:50
Those additional shares will then participate in the next dividend payment, which generates even more income, which buys even more shares. This is the snowball effect that everyone talks about in dividend investing, but that you don't really appreciate until you watch it unfold in your own portfolio, quarter after quarter. My annualized dividend income from SCHD,
based on the trailing 12 months of payments, is now at a level that honestly still surprises me when I look at it. And the beautiful thing is that this number grows through two separate mechanisms. Every time I take a dividend payment and reinvest it to buy more shares, my share count grows, which means the next dividend payment will be larger even if the
dividend per share stays the same. On top of that, SCHD's underlying holdings continue to grow their dividends over time, so the payment per share increases year after year. With this strategy, the growth becomes exponential rather than linear. If I look at where my SCHD dividend income was
just a few years ago compared to where it is today, the increase is substantial. And I haven't made any massive capital contributions. This is mostly the result of reinvestment and dividend growth doing their thing. Let me project this forward because I think it helps illustrate why I'm not concerned about this year's below average dividend growth. If SCHD continues growing
its dividend at anything close to the historical average, let's say around 12% annually. The numbers get really interesting really fast. When I combine the income from dividend growth with the income generated by reinvested shares, my total annual income from SCHD should increase substantially just by holding the position and letting it do its thing. No additional
capital contributions required. No active trading, just owning quality assets that produce growing income streams. This is where the real power of dividend growth investing reveals itself.
My expected yearly dividend income across my entire portfolio has been climbing steadily, and SCHD represents a significant portion of that. By this time next year, based purely on reinvestment and dividend growth, my expected annual dividend income should cross some meaningful psychological thresholds. I need to address something that's been on a lot of SCHD investors minds
over the past year. SCHD has significantly underperformed the broader market recently, particularly over the last 12 months. We're looking at SCHD being down roughly 5% while the S&P 500 has been up somewhere around 15%. That's a significant gap, and I won't lie, it's been tough to watch.
Seeing friends and family celebrate strong portfolio gains while you're barely moving the needle really tests your confidence in your strategy. So why has SCHD underperformed so dramatically?
The answer comes down to the funds holdings and sector allocation.
答案在於該基金的持股和行業配置。
05:03
SCHD has very little exposure to technology stocks, and specifically, it has minimal exposure to the mega-cap tech companies that have driven the vast majority of the market's gains over the past couple of years. The magnificent seven stocks have been on an absolute tear. We've now reached a point where the top 10 stocks in the S&P 500 represent
over 40% of the entire index's market capitalization. That's an extraordinary level of concentration, and it's historically unusual. SCHD, by contrast, has heavy weightings in sectors like energy, consumer defensive companies, and healthcare. These are stable, mature sectors that haven't
participated in the tech-driven rally that's dominated market returns. So while SCHD has been doing exactly what it's designed to do, delivering steady dividend income and maintaining strong fundamentals, the market simply hasn't cared about those characteristics this year. Here's the main story and you're probably missing it. SCHD isn't just an ETF where some fund managers sit
around picking dividend stocks based on their opinions. Every single year in March, SCHD goes through what's called an annual reconstitution. This is a systematic process where the fund screens the entire universe of eligible stocks and rebuilds its holdings based on specific, rules-based criteria. Here's how the process works. SCHD starts with the Dow Jones U.S. broad
選擇股息股的 ETF。每年三月，SCHD 都會進行所謂的年度重組。這是一個系統化的過程，基金會篩選所有符合資格的股票，並根據特定的、基於規則的標準來重建其持股。這個過程是這樣運作的：SCHD 從道瓊美國綜合股票市場指數（Dow Jones U.S. Broad Stock Market Index）開始，排除房地產投資信託（REITs）。
06:09
stock market index, excluding real estate investment trusts. They then run three initial screens on all those companies. First, they look for at least 10 consecutive years of dividend payments.
然後，他們對所有這些公司進行三項初步篩選。首先，他們尋找至少連續 10 年支付股息的公司。
06:18
This eliminates any companies that don't have a proven track record of returning cash to shareholders. Second, they require a minimum market capitalization of $500 million.
這就排除了任何沒有向股東回饋現金的可靠記錄的公司。其次，他們要求最低市值為 5 億美元。
06:26
They're looking for established companies, not small speculative plays. Third, they want a minimum three-month average daily trading volume of $2 million or above. This ensures there's sufficient liquidity in the stocks they hold. Once these initial screens are complete, they rank all the passing companies by dividend yield and select the top 50%.
Those stocks then become eligible for final selection. The final composite ranking looks at multiple factors weighted equally. Free cash flow relative to total debt, return on equity, indicated annual dividend yield, and five-year dividend growth rate.
Based on this composite scoring system, the top 100 stocks are selected for the index.
根據這個綜合評分系統，選出前 100 檔股票納入指數。
06:57
There's a 4% cap per individual stock to prevent over-concentration, and there's a 25% cap on sector waiting to ensure diversification. Currently held stocks are retained if they remain in the top 200 by composite score, which provides stability and reduces turnover.
This systematic approach is directly related to why SCHD has underperformed tech-heavy indexes recently. As tech stocks have climbed higher and higher, their dividend yields have gotten lower and lower. Yield moves inversely to price. When a stock price doubles but the dividends stays the same, the yield gets cut in half. Lower yields mean tech companies rank lower
in SCHD's screening methodology. The fund isn't making a judgment call about whether tech stocks are good or bad investments. It's simply following its rules, and those rules naturally filter out stocks that have appreciated so much that their yields have become too low.
This is actually one of the things I appreciate most about SCHD. It has a built-in contrarian mechanism. When sectors get hot and expensive, they naturally get filtered out or reduced in waiting. When sectors get beaten down and cheap, their yields rise and they become more attractive. The fund naturally shifts toward value when things are oversold and away from growth
when things are overvalued. But here's the catch. If tech stocks continue their run and maintain their dominance, SCHD will continue to underperform. The methodology doesn't adapt to chase performance.
It sticks to its discipline of identifying financially healthy companies with strong dividend characteristics, regardless of what's currently popular in the market.
它堅持其原則，即識別財務狀況健康且具備強勁股息特性的公司，無論市場當前流行什麼。
08:13
Here's the part that changes everything. When I was going through my crisis of confidence about SCHD earlier this year, questioning whether I should just sell and reallocate to tech, I forced myself to dig into the long-term historical datum. What I found genuinely surprised me and ultimately reinforced my decision to keep holding. While SCHD itself,
only launched in late 2011, the index attracts the Dow Jones US dividend 100 index.
該指數僅於 2011 年底推出，便吸引了道瓊斯美國股息 100 指數。
08:36
Looking at its long-term performance, the dividend 100 index has often competed strongly with, and in many periods outperformed the S&P 500, especially over multi-year horizons.
This shows that a dividend-focused approach has historically been able to deliver solid returns, even through different market cycles. That was eye-opening for me.
Even with the record-breaking Q4 dividend of $0.27 per share, SCHD is underperforming in terms of price right now, and that's not typical.
即使第四季每股 0.27 美元的股息創下紀錄，SCHD 目前在股價方面表現不佳，這並不常見。
09:00
This short-term lag is mainly due to the market being dominated by a handful of megacap stocks.
這種短期落後主要是由於市場由少數大型股主導。
09:04
Over longer timeframes and across different market cycles, this dividend-focused strategy has consistently delivered strong returns, showing that the Q4 payout is just the latest sign of its steady performance. Here's the part that really caught my attention during the 2022 bear market. While most of the market was tanking, SCHD barely flinched. The fund ended the year down.
Only around negative 3%, compared to the S&P 500's decline of roughly negative 18%.
僅下跌約 3%，而標準普爾 500 指數的跌幅約為 18%。
09:28
That kind of resilience shows that, even if SCHD lags in hot bull markets dominated by megacap tech, it delivers meaningful downside protection when the market turns.
For me, that defensive strength is exactly why SCHD deserves a place in my portfolio.
對我來說，這種防禦能力正是 SCHD 值得在我的投資組合中佔有一席之地的原因。
09:42
Over the past few months, I've had so many conversations with people asking whether they should buy SCHD right now, or whether it's time to sell SCHD and move into something else.
And my answer is always the same. It depends entirely on what you believe about the current market environment. If you're confident that AI and megacap tech stocks still have room to run, and that this tech-driven rally isn't slowing down anytime soon, then yeah, SCHD might not feel like the most exciting opportunity right now. But if you have any concerns about market concentration, if you think there's a possibility we're in a bubble
that could deflate, if you worry about what happens when growth stocks stop growing, or if you simply want a portfolio that isn't entirely dependent on a handful of companies maintaining their extraordinary valuations, then SCHD offers something valuable.
It's a systematic approach to owning profitable, financially healthy businesses that return cash to shareholders through growing dividends. It's not trying to predict the future, or ride the latest trend. It's just methodically identifying quality companies and letting dividend growth compound over time. For me personally, seeing the top 10 stocks represent over 40% of the S&P 500 makes me uncomfortable. That level of concentration means if those stocks
correct, the entire index gets dragged down significantly. I'm not predicting that will happen, and I'm not trying to time it. But I sleep better knowing I have significant exposure to quality businesses outside that concentrated group. Let's bring this full circle.
SCHD's fourth quarter dividend of 0.278 $2 per share, the highest in the fund's history, is more than just a number. It's a clear signal that the fund's strategy is working as intended. The underlying holdings continue to generate robust cash flow, supporting sustainable and growing dividends. SCHD's systematic approach is executing exactly
as designed, identifying financially healthy companies and rewarding shareholders with steadily increasing income. Even in a year of muted price appreciation, the fund is delivering on its core promise. Consistent dividend growth. When I reinvest this dividend payment at current prices, I'm adding a meaningful number of new shares to my position. Those shares will generate income
next quarter and every quarter after. That income will buy more shares. Those shares will generate more income. The machine keeps building itself larger with each passing quarter.
這些收入將買進更多股票。這些股票將產生更多收入。這台機器隨著每個季度的過去而不斷自我壯大。
11:36
SCHD is now in its 14th year, and the dividend has increased every single year.
SCHD 現已進入第 14 年，股息每年都在增加。
11:40
Some years saw substantial growth, others more modest, but the overall trend has been consistently upward. This proven track record gives me confidence that, even during periods of muted price appreciation, I'm steadily progressing toward my goal of building reliable, growing income.
Let's be clear. No one can predict exactly what SCHD will do over the next year.
讓我們說清楚。沒有人能準確預測 SCHD 在未來一年會如何表現。
11:57
Five years, or even ten years. I don't know if tech stocks will keep climbing, if we'll see a rotation back into value in dividend paying stocks, or whether this year's below average dividend growth will be followed by an above average year like history might suggest.
What I do know is this. SCHD will continue executing its discipline methodology, holding financially strong companies and delivering steadily increasing income.
我所知道的是這個。SCHD 將繼續執行其紀律化的策略，持有財務穩健的公司，並提供穩步增長的收入。
12:19
By reinvesting dividends, I let the power of compounding work in my favor.
透過將股息再投資，我讓複利的力量為我所用。
12:22
And if the market experiences a significant correction, SCHD's defensive characteristics offer meaningful protection for my portfolio. This dividend announcement doesn't change my strategy. It doesn't make me want to buy more, or sell what I already own.
It's just another data point in a process I committed two years ago, the disciplined, unglamorous work of steadily accumulating shares, reinvesting dividends, and letting time do the heavy lifting. And honestly, that's exactly what I signed up for. Not the excitement of market hype, not chasing flashy gains, not bragging rights. What I signed up for is consistent.
Growing income that compounds quietly in the background while I focus on the rest of my life.
穩步增長的收入在背景中安靜地複利，而我則專注於我的生活。
12:53
This record dividend payment is SCHD doing exactly what it's designed to do.
這次創紀錄的股息支付，正是 SCHD 在做它設計要做的事。
12:58
It's also a reminder that investing isn't about reacting to every headline or quarterly number.
這也提醒了我們，投資並不是在反應每一個頭條新聞或每一季的數字。
13:02
It's about patience, discipline, and trusting a strategy that's proven to work over the long term. Every dividend I reinvest today builds the foundation for future income. Every share added strengthens the compounding machine. Over time, the results aren't flashy, they're powerful, sustainable, and undeniable. So while the market may move, and headlines may scream,
my focus stays the same. I'm not chasing trends or trying to time the next big move.
我的焦點始終如一。我不追逐趨勢，也不試圖預測下一次的大波動。
13:22
I'm letting quality, consistency, and compounding do the work for me.
我讓品質、穩定性和複利為我工作。
13:26
And that's why, no matter what happens in the short term, I feel confident and aligned with my goals.
這就是為什麼，無論短期內發生什麼事，我都感到充滿信心，並且與我的目標保持一致。
13:30
SCHD isn't just paying a dividend, it's validating a strategy, rewarding patience, and proving that the quiet, disciplined approach to building wealth still works.
I'm not telling you to buy or sell SCHD or any other investment.
我不是在告訴你該買或賣 SCHD 或任何其他投資。
13:41
I'm just sharing this to motivate someone who is interested in building long-term wealth with SCHD. And if you want to take your dividend investing to the next level and see compounding in action, go watch the video where I shared a strategy I've been using to excel in dividend investing.
