Today is Dividend Day. The series where I teach you 5 things about dividend investing in less than 5 minutes. 1️⃣ SCHD Shifts to TechThe Schwab U.S. Dividend Equity ETF (SCHD) rebalances its portfolio every quarter to make sure no single stock or sector exceeds its index caps. The latest Q3 rebalance involved a sharp rotation back into Technology, increasing the sector's weight from 8.90% to 12.00%. Health Care got trimmed from 20.99% down to 18.77%. Individual stocks saw some big moves too:
2️⃣ Amazon Takes the Top Spot for RevenueFor years, Walmart sat at the top of the global revenue chart. But things are always changing as shown by the image that tracks the top companies by revenue from 2020 to 2026:
3️⃣ An Investing QuoteMarkets, sectors, and companies are constantly in motion. Whether it’s a dividend ETF like SCHD rotating its weightings, or the biggest companies in the world changing position in the revenue rankings, most things change. “Nothing goes in one direction forever… Cycles always prevail eventually… Just about everything is cyclical.” — Howard Marks (The Most Important Thing) 4️⃣ SCHD’s StrategySCHD has performed very well since its inception in 2011, retiring more than 13% per year on average. That makes its strategy worth studying.
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