SCHD Over SDY: Fundamental Quality Beats Dividend Aristocracy
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AMO Research408 FollowersFollow5ShareSavePlay(13min)CommentsSummaryI rate Schwab U.S. Dividend Equity ETF (SCHD) a buy and State Street® SPDR® S&P® Dividend ETF (SDY) a hold, favoring SCHD’s quality-driven strategy.SCHD offers higher dividend yield (3.80%), lower P/E (13.50x), and lower fees (0.06%) than SDY’s 2.58% yield, 17.27x P/E, and 0.35% expense ratio.SCHD’s portfolio emphasizes quality screens and conviction, while SDY relies on backward-looking dividend track records, resulting in crowded trades and higher valuations.Despite slightly higher risk, SCHD delivers superior long-term total and risk-adjusted returns, making it the preferred choice for income-focused investors. filo/iStock via Getty Images We are ending 2025 with a complex landscape for US equities markets with record high valuations, and a clear distinction between the stocks that benefited from the new fiscal policies of the Trump administration andThis article was written byAMO Research408 FollowersFollowI am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative analysis, demonstrated with hands-on roles in private equity, asset management and Real Estate.
On Seeking Alpha, I aim to write about companies I find interesting sharing my insights and analysis with a global audience, and to debate my ideas in a will of continuous improvement. Motivated by empowering informed decisions, I’m excited to connect with readers and grow as a thought leader in finance.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.