Subject: SCHD for dividend growth
There is an excellent post by lizgdal at https://www.shrewdm.com/MB?pid... which backrests the ETF with ticker SCHD and produces similar results to what the ETF realised. This at least confirms the backtest working in that instance but also allows the ETF to be experimented with for improvement, datamining avoidance notwithstanding.
For reference: SCHD picks stocks that have paid dividends for a minimum of 10 consecutive years, and ranks stocks by free-cash-flow-to-total-debt ratio, return on equity, dividend yield, and five-year dividend growth. SCHD applies liquidity and market cap limits, and uses Market cap weighting. SCHD follows the Dow Jones U.S. Dividend 100 Index, rebalances quarterly, and drops zero Yield stocks monthly.
The ETF now yields over 4% and has had capital gains, on top of that, at 10% pa since its formation in late 2011.
- Manlobbi