SCHD: Dividend Yield Disadvantage

Dair Sansyzbayev9.8K FollowersFollow5ShareSavePlay(8min)CommentsSummarySchwab U.S. Dividend Equity ETF remains rated 'Sell' due to unattractive risk-reward versus Treasuries and sector headwinds.SCHD's 3.8% forward yield is less compelling with the Fed projecting only one 25-bps rate cut in 2026, keeping risk-free rates elevated.Overweight exposure to Energy sector is a concern given structural pressures and a tepid 2026 outlook.SCHD’s dividend scorecard is superior to VIG and VYM, but a rotation to value is needed for outperformance, which currently appears unlikely. ADragan/iStock via Getty Images The Schwab U.S. Dividend Equity ETF™ (SCHD) slightly outperformed the broader market since my previous bearish call in late September 2025. This was mostly explained by the fact that there was a solid 13% rallyThis article was written byDair Sansyzbayev9.8K FollowersFollowI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity research and analysis of public companies. This interest has led me to render equity research services for a Dubai-based family office with over $20 million in assets under management (AUM). My expertise in finance allows me to provide valuable insights and recommendations to clients seeking to make informed investment decisions.I pride myself on my ability to analyze financial statements, evaluate market trends, and identify key drivers of growth in different industries. I am passionate about staying up-to-date on the latest developments and trends in the equity research industry, and I am always seeking to enhance my skills and knowledge through continuing education and professional development.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.