SCHD

Now, the last ETF I want to look at and discuss is my favorite Schwab US Dividend Equity ETF. We need to look into whether SCHD is offering any potential buying opportunities.

Now SHD is still very close to its all-time high, trading at around $35 per share. Its blended PE is 17.21 times. EPS yield is 5.81% and SHD's dividend yield is now around 3%. The adjusted operating earnings growth rate is 9.19% and its fair value is about 15 times.

SCHD Fund has just made one of its biggest portfolio changes of the year. Not just for this year, but for many years. And if you are one of the millions of investors who own SCHD, and I am one of them, your portfolio looks remarkably different today.

As many of you may already know, SCHD updates its portfolio, its entire portfolio, once a year in the spring. This is the annual reconstitution, where we get a set of new stocks that are added to the portfolio and others that are excluded.

quarter dividend distribution has just been announced . The value was 0.2665 cents per share, and it will be paid out on September 28. This increase in distributions will raise many questions among investors about the SCHD fund, as it represents an increase of only 2.34% compared to the distributions in the third quarter of last year.

For this reason, I want a dividend fund, and the best option in my opinion is SCHD, which is the Schwab US Dividend Equity ETF.

Look at its beta coefficient. SCHD's beta coefficient is approximately 0.69. That is, it fluctuates 30% less than the S&P 500 index. That is exactly what I am looking for.

While everyone is worried about an AI bubble or inflated market valuations, this fund offers diversification away from those risks . If an AI bubble occurs , or there is inflation in technology prices, or a major stock market crash , owning this fund will spare you worry, as it will take you out of the danger zone and keep your portfolio stable if those stocks decline .

But then to keep the portfolio a bit safer and less volatile, especially as you get closer to retirement and definitely in retirement, you want something lower volatility and very much recessionproof.

And that's where something like SCHD or a highly value ETF comes in.

A dividend growth would be something like SCHD or maybe even dividend king stocks like Proctor and Gamble or Johnson and Johnson. Those are going to have a dividend like 3%, 4%, something of that nature. but each and every year or at least consistently they're going to be growing that dividend by a couple percentages.

However, what many overlook is that the real bubble, at least in the AI race, will not be in the price, but in the decline in potential earnings growth . I have seen many people refer to this, but it is still misunderstood.

However, my wallet is designed for such an event for several reasons. Firstly, the core assets in my portfolio continue to increase dividend payouts regardless of market conditions.

This means that the amount of income I receive from dividends continues to grow monthly . In some cases, this is a good thing, because it allows me to reinvest dividends at lower prices, enabling me to buy more shares and thus increase my dividend income at a faster pace.

But my portfolio is protected not only in this way, but also because it forms its main pillar, SCHD, which represents about 40% of my portfolio.