Updated
Updated · The Motley Fool · Aug 20
SCHY Offers 3.7% Yield as International Pairing for Schwab's U.S.-Only SCHD
Updated
Updated · The Motley Fool · Aug 20

SCHY Offers 3.7% Yield as International Pairing for Schwab's U.S.-Only SCHD

1 articles · Updated · The Motley Fool · Aug 20

Summary

  • SCHY is pitched as the international complement to SCHD, giving dividend investors exposure beyond U.S. stocks while maintaining a high-yield, quality-focused approach.
  • 10 consecutive years of dividend payments are required for inclusion, and SCHY then screens on cash flow to debt, return on equity, yield, five-year dividend growth and volatility before building a 100-stock portfolio.
  • 75% in SCHD and 25% in SCHY is suggested for younger investors, while those nearer retirement may keep a heavier U.S. weighting depending on risk tolerance and personal circumstances.
  • 3.7% is SCHY's current yield, slightly above SCHD's, with the report arguing that balance-sheet strength and dividend commitment make that payout more sustainable.

Insights

While SCHY offers global diversification, does adding international dividend stocks actually drag down your portfolio's total long-term return?
Could hidden foreign taxes and currency shifts secretly devour the attractive yields promised by international dividend funds like SCHY?