The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index and consists of over 100 of the top dividend-paying stocks in the United States. While the SCHD ETF has declined about 4% year-to-date, both the technical indicators and analysts’ consensus point to further upside potential in the ETF.
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Remarkably, SCHD is a low-fee dividend ETF provided by Charles Schwab (SCHW). Moreover, the SCHD ETF stock is appealing as it has a very low 0.06% expense ratio and currently yields 3.64%, which is more than double the average yield for the SPDR S&P 500 ETF (SPY) of 1.49%.
The top three sectors that SCHD offers exposure to are industrials, healthcare, and financials, with stocks from all three sectors accounting for nearly 48% of the ETF. Broadcom (AVGO), PepsiCo (PEP), and Merck (MRK) are the top three holdings of the SCHD ETF.
SCHD ETF Technical Analysis
According to TipRanks’ technical analysis tool, the SCHD ETF stock’s 50-Day EMA (exponential moving average) is 71.69, while its price is $71.42, making it a Buy. Further, the shorter-duration EMA (20-Day) also signals a Buy.
Meanwhile, its RSI (Relative Strength Index) is 58.75, implying a Neutral signal. At the same time, SCHD’s price rate of change (ROC) of 3.52 points to a bullish trend.
Overall, in the one-day time frame, the SCHD ETF stock is a Buy, based on TipRanks’ easy-to-read technical summary signals. This is based on 11 Bullish, four Neutral, and seven Bearish signals.
Is SCHD a Buy or Sell?
The analyst community is somewhat divided in its outlook for SCHD. Of the 906 ratings on the SCHD ETF’s 102 holdings, 42.94% are Buys, 46.47% are Holds, and 10.6% are Sells. Despite this Hold consensus rating, the average SCHD price target of $81.75 still implies upside potential of 14.5% from current prices.
