Analyst Buys Schwab Dividend ETF With 3% Yield to Hedge 3.5% Inflation
Updated
Updated · Yahoo Finance · Jul 30
Analyst Buys Schwab Dividend ETF With 3% Yield to Hedge 3.5% Inflation
2 articles · Updated · Yahoo Finance · Jul 30
Summary
SCHD is the analyst’s preferred inflation hedge as June consumer prices were still up 3.5% from a year earlier and rising oil prices could push July inflation higher.
A 3%-plus yield underpins that case, offering income that can better preserve purchasing power than savings accounts or many fixed-income holdings.
The ETF screens for companies with at least 10 straight years of dividend increases, and its payout has climbed 210% over the past decade.
SCHD has also outperformed the S&P 500, Nasdaq, Dow and Russell 2000 so far this year through July 28, adding price gains to its income appeal.