SD is a dividend ETF favorite for investors looking for both dividend yield as well as dividend growth and the great thing about CHD is it's also a great compliment to the tech heavy S&P 500 however CHD has been in a bit of a slump of late falling more than 6% in the past month and down nearly 10% from its recent 52- we highs so is it time to dump this dividend ETF or is it time to double up we'll talk about this in today's video video but before we do do me a huge favor simply show your appreciation by clicking that like button down below subscribe to the channel and let's jump into [Music] it hey everyone Mark Ron here back for another video as always I'm a CPA and not a financial adviser so please do not take this as Financial advice and before we begin let me thank today's video sponsor which is the mle fool the mtle fool has a ton of great resources and products available for inv of all different levels and right now you can check out their 10 best stocks to buy right now by going to full. com for/ Mark or you can check out the link down in the description below all right let's get back to today's topic talking about SCD a dividend ETF favorite and when people are looking ATD the reason being it's so popular is that it checks a lot of boxes SCD can give you growth potential SD can give you higher yield than most high yield ETFs SCD can give you solid dividend growth in fact faster dividend growth than most dividend growth focused ETFs looking here you can see thatd offers a juicy dividend yield of 3. 6% to go along with a solid 5-year dividend growth rate of 11.
6% let's compare that yield to two popular high yield dividend ETFs hdv as well as VM hdv has a dividend yield of 3 . 65% so pretty much in par with SCD and VM has a dividend yield of just 2. 72% now let's compare the SD dividend growth rate to the two popular dividend growth Focus ETFs that are VI and DG viig has a 5-year dividend growth rate of 99.
6% dgro a 5-year dividend growth rate of 8. 3% both of them lagging the 11. 6% that SCD has all of the talk that I've been hearing about of late a lot of messages I've been getting is about SCD and the selloff if one month selloff is going to have you running for the hills then you shouldn't probably be investing in the first place if anything you should be running back to the stock stocks that you like stocks that are high quality trading at a lower valuation that's when we want to buy it's amazing to me for new investors when a stock is up over 100 150% and they have no issue buying it but if that stock Falls just 15% in a short period of time we no longer like that stock we're no longer looking to buy it that's baffling and if you recall the great Warren Buffett once said that we want to be fearful when others are greedy and greedy when others are fearful over the years SD has proven to be a great compliment to Tech heavy portfolios now what is becoming an S&P 500 ETF which is very topheavy with tech Titans if you're going to sit here and compare the likes ofd to top growth focused ETFs that's just not a fair fight that's not the intention that's not whyd was created SD was created to give you a well-balanced portfolio that will give you some growth potential will give you a solid dividend yield and will give you strong dividend growth however prior to this AI boom that we've seen over the past few years did you know thatd actually outperformed the S&P 500 over a 10 plus year period since SD's Inception back in 2011 through the end of 2022 prior to this big AI boom which anyone that says this is the new Norm is just outright lying to you but over that period SCD returned over 300% compared to the S&P 500 returning 274 now in the past 2 years the story is way different but 177% returns fromd is not terrible but it does badly lag the S&P 500 which is up nearly 60% which again is not normal so is now the time to run away fromd or is it time to double up well first you got to ask yourself a few questions are you looking for yield are you looking for dividend growth are you looking to balance out your portfolio on what may be overextension into technology or the S&P 500 if the answer is yesd is going to be one of the best options out there let me explain a little let's first take a look here at the sector breakdown for SCD where you see the top sectors include financials Health Care Consumer Staples Industrials and energy nowhere in the top five do you see technology or communication Services which are the two largest sectors within the S&P 500 nope if you go further down the list you will see technology accounts for just 10% and communication Services less than 5% now let's take a look at the top 10 Holdings which recalibrate every quarter and are fully repick every March so just a few months away until we see some major changes likely coming to SCD the top 10 Holdings include fizer Black Rock avvy Cisco Systems Coca-Cola Bristol Meyers squib Texas Instruments PepsiCo locked Martin and amen in total SCD has 103 Holdings and the top 10 make up more than 40% so now what we're going to do is a little exercise where we're going to take a look at the top 10 Holdings and their upside I'm going to show you the average price target for analysts over the next 12 months and the implied upside where that price Target is to give us a better idea of where could SCD be headed after all these top 10 Holdings make up roughly 40% of the ETF let's begin with fizer which is not a stock I'm all that crazy about but the average 12-month price target for fizer is over $31 the potential upside 18.
