- Though SCHD has performed very well this past year, it has become top-heavy in stocks whose fundamentals are worrisome.
- SCHD's dominant stocks overall appear to be highly valued both by P/E ratio and price vs. price targets. So do most of the rest of the stocks in SCHD.
- The earnings per share of most stocks in SCHD are also growing slowly. Valuations appropriate to growth stocks spell trouble for slow growers.
- SCHD will not perform going forward the way it did a decade ago when dividend stocks were value stocks. If valuations reset, slow EPS growth will mean share prices will be slow to recover.
For further details see:
SCHD: High Stock Valuations And Slow EPS Growth Flash A Warning