I'm Buying More of This Stock in my Portfolios
The best feeling is a nicely managed portfolio that generates income AND growth
Hello fellow investors!
I bought more SCHD 0.00%↑ today to keep going with my strategy to grow my income and income appreciation side of my portfolio:
SCHD 0.00%↑ is an excellent ETF because it rebalances toward high dividend appreciation stocks within it’s holdings every year. It focuses on large, financially strong companies with high dividend yields and strong fundamental strength like cash flow-to-debt and return on equity.
It skews toward health care, consumer staples, energy, industrials, etc and is the perfect complement to a tech-heavy ETF like QQQI 0.00%↑. The crucial stats for SCHD 0.00%↑ include the following taken straight from the Schwab website:
Fund Inception: 10/20/2011
Total Net Assets: $108,736,688,266.67
Total Expense Ratio: 0.060%
NAV: $34.42
Total Holdings: 103
Portfolio Turnover Rate: 40.88%
SEC Yield (30 Day): 3.20%
Distribution Yield (TTM): 3.13%
Return on Equity: 27.08%
Price to Earnings Ratio: 18.89
As you can see, the expense ratio which tracks how much it costs to hold the ETF is incredibly low, which is perfect for long term compounding. With $10k invested, it only costs $6 per year with a 0.06% expense ratio.
Now let’s take a look at the performance of the fund:
The annualized returns over 10 years look pretty decent at around 12.65% and 13.42% since inception. This indicates a stable market performing fund that tracks at or better than the overall market which can return less using a conservative lens.
This makes my income side of the portfolio look like this with approximately $34500 invested so far with today’s $500 infusion:
Also, I have seen ETF price appreciation as well to the tune of 3.82% so far within 2 weeks of creation of this specific portfolio. Even though this is not the reason that this portfolio was created, it’s still nice there is price appreciation and not NAV erosion. Of course, some of these holdings are relatively new in terms of inception like the IAUI 0.00%↑ and the QQQI 0.00%↑ funds.
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