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Dividend ETF (SCHD) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, Schwab U.S. Dividend Equity ETF (SCHDis probably on radar now. The fund just hit a 52-week high and is up about 30.7% from its 52-week low price of $44.03/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

SCHD in Focus

SCHD provides exposure to dividend yielding U.S. stocks issued by companies with a record of consistent dividend payments. It has key holdings in consumer staples, information technology, industrials and consumer discretionary. The fund charges 6 basis points in annual fees (see: all the Large Cap Value ETFs here).

Why the Move?

The dividend corner of the broad U.S. stock market has been an area to watch out for lately, given the uncertainty related to the initial level U.S.-China trade deal. This has raised the appeal for dividend investing. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to large swings in stock prices.

More Gains Ahead?

Currently, SCHD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. The fund has a positive weighted alpha of 18.60. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty remains in the market.

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Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports
 
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