Subject: Re: SCHD Schwab US Dividend Equity ETF
I agree think this board suits the question best

The bulk of my net worth will be in tax-deferred IRA accounts. My taxable equities
will be in a combination of Berkshire, QQQE, and Treasuries. I'm considering adding
SCHD to the mix, as these (BRK, QQQE, SCHD) aren't holdings that I would need to
sell in the next 10 years, as I want to minimize (or eliminate) any capital gains.
Thoughts?

This is a highly interesting and unusual set up - tax on the capital gains but not on the dividends.

Presently BAM is yielding about 4.5% and they grew their distributable earnings by 15-20% per year over the last decade, however I am still trying to work out to what extent that required capital investment from the parent, prior to BAM being separated out from BN, or whether much of BAM's enormous growth in the distributable earnings was organic, and thus repeatable on a per-share basis now that BAM is trading separately to BN.

But the parent (BN) also have other subsidiaries, such as BEP (renewable power) yielding 5% and BIP (infrastructure) yielding about 4.6% presently. The point is that these subsidiaries of the Brookfield Corporation (BN) are not set up to simply pay a reliable quarterly dividend rising with inflation, but rather to grow the distributable earnings highly opportunistically through the purchase of undeveloped assets and the sale of (what they call 'mature') more developed assets. They have a long track record of doing this successfully. So each subsidiary is very concentrated on the total return, despite the rather high dividend payout ratios, which are intended not only for the public but also to channel funds back to the parent BN, as BN has a large stake in all of its subsidiaries. That is why given your focus on the total return (which should be all investor's focus) but wanting the higher dividend component of that for your tax efficiency, then these would be worth looking at closely.

Wall St also is not favouring asset managers right now so it is a very good time to hold Brookfield or its publicly traded subsidiaries. There is a lot of discussion about this at the Brookfield board here.

- Manlobbi