SCHD: Why I'm Still Buying After Strong 2026 Performance

Schwab U.S. Dividend Equity ETF remains a Buy for its blend of capital appreciation and dividend income. SCHD's top holdings, including ABT, UNH, and MRK, offer underappreciated catalysts and strong dividend growth potential. The fund's defensive sector tilt and low IT exposure provide lower volatility and diversification versus both peer funds and the S&P 500 Index. SCHD trades at a 19x P/E, below peer dividend funds and the broader market, supporting continued outperformance.

Schwab U.S. Dividend Equity ETF ( SCHD ) still warrants a Buy rating for three key reasons that support a strong blend of capital appreciation and dividend income. First, its current mix of holdings provides exposure to high-quality, dividend-producing companies that are