SCHD

But then to keep the portfolio a bit safer and less volatile, especially as you get closer to retirement and definitely in retirement, you want something lower volatility and very much recessionproof.

And that's where something like SCHD or a highly value ETF comes in.

A dividend growth would be something like SCHD or maybe even dividend king stocks like Proctor and Gamble or Johnson and Johnson. Those are going to have a dividend like 3%, 4%, something of that nature. but each and every year or at least consistently they're going to be growing that dividend by a couple percentages.

However, what many overlook is that the real bubble, at least in the AI race, will not be in the price, but in the decline in potential earnings growth . I have seen many people refer to this, but it is still misunderstood.

However, my wallet is designed for such an event for several reasons. Firstly, the core assets in my portfolio continue to increase dividend payouts regardless of market conditions.

This means that the amount of income I receive from dividends continues to grow monthly . In some cases, this is a good thing, because it allows me to reinvest dividends at lower prices, enabling me to buy more shares and thus increase my dividend income at a faster pace.

But my portfolio is protected not only in this way, but also because it forms its main pillar, SCHD, which represents about 40% of my portfolio.

So today I'm going to show you exactly what SCD is, what it holds, and why it's beating everything right now, whether it's continue, and what I'm personally doing about it every single month.

So here's what's going on. SCHD is up over 26% this year on price alone. But if you also reinvest the dividends, the total return jumps past 30%. Almost 4% extra just from compounding that cash flow.

Now, earlier this year, they removed 22 stocks from the ETF and brought in 25 new ones. That is a 30% turnover. They completely changed the DNA of this fund. This is not the same ETF it was last year, and it's paying off.