Motley Fool Backs SCHD ETF With 3.3% Yield as S&P 500 CAPE Hits 42
Updated
Updated · The Motley Fool · Jun 7
Motley Fool Backs SCHD ETF With 3.3% Yield as S&P 500 CAPE Hits 42
2 articles · Updated · The Motley Fool · Jun 7
Summary
SCHD was highlighted as a defensive ETF for a possible market pullback, offering a 3.3% dividend yield and a portfolio of roughly 100 established companies.
The recommendation comes as the S&P 500’s Shiller CAPE ratio reached 42, a level last seen around the 2000 tech collapse, leaving stocks with little room for error.
Inflation above the Fed’s target, slower GDP growth over the past two quarters and Trump’s renewed tariff push were cited as potential catalysts for a broader selloff.
SCHD’s screen favors balance-sheet strength, long dividend-payment histories and above-average yields, traits that can cushion declines and add income during volatile periods.
In 2022, that profile helped the fund fall just 3% while the S&P 500 dropped 18%, underscoring its appeal when investors rotate away from growth-heavy sectors.