Ticker: SCHD (Schwab U.S. Dividend Equity ETF) Timeframe: 1M (Monthly)
Analysis: SCHD has consistently shown strong performance since its inception, benefiting from a diversified portfolio of dividend-paying stocks. The chart highlights a classic Elliott Wave structure:
Wave (1): Initial growth phase after inception. Wave (2): Consolidation during the 2015-2016 market slowdown. Wave (3): Long-term bullish rally, supported by broader market trends and stable dividends. Wave (4): Recent pullback due to macroeconomic headwinds (rising rates, inflation concerns). Wave (5): Forecasted bullish continuation toward $36.63 (Target 2), with an interim target at $32.64 (Target 1).
The ETF's resilience through economic cycles and its consistent dividend growth make it an excellent candidate for long-term portfolios.
Key Levels - Entry Zone: Current price around $27.37. - Target 1: $32.64 (+19% from current levels). - Target 2: $36.63 (+33% from current levels). I- Invalidation: A breakdown below $24.00 would negate the bullish wave structure.
Fundamentals - Dividend Yield: ~3.5% (Varies slightly due to reinvestments). - Macro Outlook: Dividend-focused ETFs like SCHD are attractive in high-rate environments due to their steady cash flow. This complements a balanced portfolio seeking growth and income. - Sector Weighting: Heavy allocation toward financials, healthcare, and consumer staples—stable industries in uncertain markets.
Conclusion SCHD presents a compelling long-term growth opportunity with solid dividend reinvestment potential.
Investors looking for a buy-and-hold strategy should consider adding this ETF to their portfolios, especially for retirement-focused accounts like Roth IRAs.
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