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SCHD: We Were Horribly Wrong
Seeking Alpha • • business
Key Points:
- The Schwab U.S. Dividend Equity ETF (SCHD) outperformed expectations and the broader market in the first half of 2026 despite bearish macroeconomic conditions.
- Key holdings such as Abbott Laboratories (ABT), Merck (MRK), and Amgen (AMGN) delivered significant gains, particularly after major positive news events.
- SCHD’s strength lies in its consistent dividend growth and stable income, making attempts to wait for a deeper market pullback costly due to missed dividend distributions.
- The ETF's performance defied historical correlations with macro trends, highlighting the prudence of remaining invested in SCHD to capture dividends amid market headwinds.
- The authors acknowledge their previous bearish call on SCHD was mistaken and emphasize the value of their real-world portfolio insights available through BAD BEAT Investing.
