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I Boosted My SCHD Position by 50%. Here’s What I Checked First.

Key PointsSCHD screens for dividend durability, not just the highest yields.

The author, who is currently renovating their retirement accounts, has decided to boost their position in the Schwab U.S. Dividend Equity ETF (SCHD) by 50%. This decision was based on a thorough analysis of several key factors, including the ETF's dividend yield, historical returns, and dividend growth. The author chose SCHD due to its attractive dividend yield of 3.2% and strong historical returns, as well as the ETF's focus on dividend quality and sustainability.

Before making the purchase, the author conducted three important checks: the sustainability of the dividend yield, the growth rate of SCHD's payouts, and the current valuation of the ETF's holdings. After confirming that SCHD met these criteria, the author boosted their position in the ETF by 50%.

Brief written by urgent.news from Motley Fool's own syndicated text. Machine-written — may contain errors; check the original before relying on it.

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