How is SCHD stock faring? The Schwab U.S. Dividend Equity ETF (SCHD) inched higher on Monday, rising 0.33% to $27.12, as investors shifted toward high-dividend and value stocks ahead of this week’s Federal Reserve policy decision. The move came alongside modest strength in blue-chip names and steady Treasury yields, which supported demand for income-oriented ETFs like SCHD. The ETF is also up 0.04% in pre-market trading today.
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Rising rate uncertainty has increased the appeal of defensive sectors like Consumer Staples, Financials, and Energy, all key components of SCHD. Meanwhile, the SCHD is up 0.41% in the past five days and 1.77% year-to-date.
Fund Flows and Sentiment
The SCHD ETF tracks the performance of high-dividend U.S. stocks from the Dow Jones U.S. Dividend 100 Index. According to TipRanks data, SCHD recorded 5-day net flows of about -$73 million, indicating that over the last five trading days, investors withdrew more money from the SCHD ETF than they added.
SCHD’s Price Forecasts and Holdings
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, SCHD is a Moderate Buy. The Street’s average price target of $30.45 implies an upside of 12.28%.
Currently, SCHD’s five holdings with the highest upside potential are Coterra Energy (CTRA), FMC Corp. (FMC), AMERISAFE, Inc. (AMSF), Kforce (KFRC), and Inter Parfums (IPAR).
Meanwhile, its five holdings with the greatest downside potential are Skyworks Solutions (SWKS), Murphy Oil (MUR), Carter’s (CRI), Western Union (WU), and Ford Motor (F).
Revealingly, SCHD ETF’s Smart Score is seven, implying that this ETF will likely perform in line with the market.
What to Watch Next
All eyes are on the Fed’s interest rate decision on October 29, which could determine whether dividend yields stay attractive relative to bonds.
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