PROTECTION AND WEALTH BUILDING STRATEGIES 233NYSE) and it will maintain or even build your wealth through
the chaos of hyperinflation...
SCHD tracks the total return of the Dow Jones U.S.
Dividend 100 Index. That’s a list of U.S. companies with track
records of paying reliable cash dividends.
All the stocks held in SCHD — which currently pays you
a 2.6% dividend yield — must have sustained at least 10 con-
secutive years of dividend payments. The managers of this ETF
review its holdings annually and rebalance them quarterly.
Two top reviewers of ETFs agree: the Schwab U.S. Dividend
Equity ETF is among the best.
Morningstar, an independent investment research firm,
says SCHD’s mix of top-quality businesses is better than oth-
er dividend-focused ETFs. Their yardstick is what’s called a
“wide-moat” rating. It quantifies how likely a company is able
beat its competitors over time.
Through a hyperinflation, you’ll want to own companies that
are most likely to be thriving for decades into the future. Sixty-
three percent of SCHD’s holdings receive a “wide-moat rating”
from Morningstar — the highest among dividend ETFs. In other
words, SCHD is primed to thrive through thick and thin.
Another independent review by New Constructs, gives
SCHD the highest possible marks. New Constructs is an in-
vestment research firm specializing in quality-of-earnings and
forensic accounting analysis of U.S. public companies.
While many of the stocks held in SCHD are expensive, its
valuation won’t matter much in a hyperinflationary episode.
Since SCHD charges a management fee of just 7 basis points,
or 0.07%, you’re paying a tiny sum to own a portfolio of the
market’s very best companies.
If you decide to reinvest the dividends when you place your
buy order, and hold SCHD over the long term, your hyperinfla-
tion hedge will strengthen. Here’s why: dividends that build up
as a cash stockpile in your account can be devalued in a hyper-