FDVV - SCHD: The Rebalance Is Complete
2024-03-18 11:01:18 ET
Summary
- Schwab U.S. Dividend Equity ETF™'s Index reconstituted and rebalanced on Monday, substituting 23 stocks. Broadcom and Merck are out, while Bristol-Myers Squibb is now SCHD's fourth-largest holding.
- This year's changes emphasized dividend safety over dividend growth. SCHD's free cash flow to total debt, return on equity, and dividend payout ratios all improved.
- However, estimated sales and earnings per share growth rates dwindled further, indicating the high dividend growth of the past is unlikely.
- This article evaluates SCHD's newest portfolio fundamentally, illustrating these changes in detail for its top 25 holdings. As comparators, I also ask dividend growth investors to consider VYM and FDVV.