 Hey, what's up you two? I'm Zeke and welcome to The Dream Green Show. In this episode, I'm gonna be talking about one of the top, most talked about ETFs that is right now, there is out there in the market. Now, this video was recommended by you guys. If you wanna have any other video recommendations, make sure that you scroll down, hit the subscribe button and hit the thumbs up button because that helps out this channel more than you can even imagine. And it shows that only 32% of you guys that's watching this video is subscribed and 67% of you guys are not subscribed. So let's just go ahead and flip that and have 67% of you guys subscribe to the channel so that you could recommend more videos for me to cover. Now, if you are new to this channel, I bring you guys tips on investing, whether that be passive income investing, real estate investing, investing inside the stock market. If you're new to this channel, you don't wanna miss out on any crucial information like that and wanna have the journey on financial freedom, go ahead and hit the subscribe button and let's turn that 30% to 60% and you guys could recommend many more videos down in the comment section. But before we dive into the rest of this video and me tell you more about SCHD, this video is sponsored by our long-time sponsor, Boomu. Right now, if you click the link down in the description to deposit $100, you can receive some free shares to help kickstart your journey or your investing career. So if you guys do not wanna miss out on this amazing offer that they're running right now, click the link down in the description. Sign up, deposit $100 and you guys could get some free stocks that way. But enough talking more about Boomu later in this video, but let's go ahead and dive straight into this video. Welcome back dreamers, here we are on Boomu, tickle symbol SCHD, Swab, US dividend ETF. Now the price of this ETF right now is $73.58 at the recording of this video. Now this ETF is managed by Charles Swab. As you can see over the last couple of weeks they have been performing fairly well. Now I know you guys are asking, hey, if I can invest into the SPY which usually give me a return of 68% every single year, why is SCHD so popular? Well, let's go through some of the list right quick. First of all, they have a very low expense ratio. If you invest $10,000 into SCHD, it will only cost you $6 yearly. That is a very low percent. That is a very low expense ratio compared to some of the other ETFs that's out there in the market. Now when you're looking at the two ETFs of SPY, VLO, and SCHD, they all kind of perform similar. They usually go up when the market goes up. They usually pull back when the market pulls back. They own a lot of the same company-society portfolio but SCHD is just a little different. They only own around 100 different companies inside their portfolio. So which companies is SCHD holding inside of that portfolio? First of all, they pick companies that are inside the Dow Jones 100 dividend index and you also have to have paid out dividends every single year for the last 10 years. If you only been paying out dividends for nine years, you cannot be inside the SCHD ETF. You have to pay out at least 10 years in order to be selected to be inside of the SCHD ETF, which is a huge benefit for their dividend yield. And another requirement that you have to have is that you have to have a half billion dollar market cap, $500 million market cap in order to be selected to put inside that ETF again. So no penny stocks, no small companies. You have to be a blue chip style company. You have to have a long record of paying dividends. So they're selecting some top tier companies to hold inside their ETFs. So you know this ETF is gonna have some rock solid companies inside that portfolio. Now if we pull up Moomoo again and click right here, now this is the one of the biggest features on why people are investing to SCHD because if we scroll down to the bottom where it says dividend yield, they have a 3.59 dividend yield, which is way higher than the S&P 500, SPY which tracked the top 500 companies in America. Now this 3.59% dividend yield can only be achievable because they're selecting some of the top tier dividend companies to have inside of that portfolio that's been paying dividends for the last 10 years. So as you guys know, I love my dividends. I absolutely love passive income dividends. By far the most passive income way that you can make. You literally do nothing at all and you get paid every single month or every single quarter. Now SCHD is a quarterly paying dividend stock. That mean for every share that you own of SCHD, they pay their investors away back saying, hey, thank you, here's a lump sum of money. They are a quarterly paying dividend stock. That mean they're gonna pay you our fourth times a year. And once they pay you out in dividends based on that yield of 3.59%, with those dividends you can reinvest them back into SCHD, created a snowball effect to later on 30, 40, 50 years down the line, you can pass this down to your kids and you're gonna have a money machine, a money printing machine and dividends since you've been accumulating and reinvesting all of your dividends. You can pass this down to your kids, down to your grandkids. I absolutely love dividends. Now not every company paid dividends but some of my favorite companies that I do love investing into do pay dividends. And I started off this channel as a dividend investing channel. So I'm bringing you guys one of the top dividend ETFs that is out there right now in SCHD. If you guys do wanna get your investing journey started, you can sign up with Moomoo. They have a zero commission. That mean you can buy any share of any company or sell any share of any company and you don't have to pay commissions on those. That's why Moomoo has been a sponsor of this channel for a very long time because they charge zero commissions. They open pre-market, they open after-market and you guys can trade in or invest at any time. So once again, I wanna thank today's sponsor of this video, Moomoo. You can check those out with the links down in the description. Sign up, get your free shares, guys, and invest into anything that you guys want to and get your investing career started now. Now if you guys do wanna take a look at some of the holdings that SCHD have inside of their portfolio, they have it pretty much evenly spread out right now at the moment. They have industrials at 17%, healthcare at 16%, consumer at 13%, technology at 12%, technology did, used to be a little higher in here, energy at 9% in communications and one of the lowest ones is basic materials at 2.7%. That top 10 holdings is AB, PepsiCo, absolutely love PepsiCo. PepsiCo has been increasing their dividends for the last 50 years. So once again, in order to be inside SCHD, you don't have to increase your dividends every single year. You just have to pay out dividends every single year for the last 10 years. But some of the companies inside of their portfolio have been increasing their dividends every single year, which changes out the rankings inside of the SCHD system. So let me go over the rankings a little bit inside of SCHD. So SCHD, they rebalance their portfolio all the time. So when it comes to rankings and what companies they're gonna invest into, once again, the bare minimum is that they have to have paid out dividends every single year for the last 10 years. So we have been through a recession, we've been through a pandemic and some companies did unfortunately have to cut their dividends completely and not pay their dividends. So their time, their ticker symbol has reset before they can even get a chance of getting back inside of the SCHD index. But when it comes to how much of each company they're gonna buy, they have many different rules, but first they're gonna look at companies that have been increasing their dividends for the last five years continually. They're gonna have you rank the little higher and start to purchase more of their company to add inside of the ETF. Once again, if you cut your dividends or have not increased your dividends, they might start to purchase less. And that's why SCHD has a pretty rock-solid portfolio and is still able to pay out an amazing dividend yield of 3.59%, which is completely insane, guys. That is an awesome dividend yield for this ETF. And that's how they're able to have such a high dividend ETF is by investing into rock-solid dividend-paying company. And that's why this company is talked about so much lately in the dividend investing community because some of the moves and the things that they're doing inside of the ETF. Now they do have a list of a couple of other rules that they do inside of their rankings, but that's one of the rules that I found most interesting inside of the SCHD ETF. Now I know you guys are running, hey, how much do I need to invest inside of this company in order to have a comfortable lifestyle by the time I'm ready to retire with dividends? How much do I need to invest every single month? So let's go ahead and scroll down. We're gonna look at, let's say if we started off with $1,000 and we wanna contribute $500 every single month inside of SCHD, and we're gonna invest for the next 35 years with an estimated return. Let's say the estimated return, if the S&P 500 goes up anywhere between 8% to 10% every single year or between 6% to 8% every single year, let's say SCHD do the same thing, go up between 6% to 8% every single year. So even if it goes up 8%, remember we have a 3.5% dividend year, so you'll make a little more over 8%, but let's say if it only goes up 6% in a year, that means plus the 3.5% dividend year will make around 9%, and if it only goes up 3% in a year, remember we have a 3.5% dividend year, so it'll go up around six, considering if we reinvest our dividend. So let's just go ahead and stick with eight right here and there you go. So after 35 years, you'll have $1.1 million, so you'll have a little over a million dollars. You would have invested $211,000 of your own money and your total interest, considering that you do reinvest your dividends, you'll have $952,000 in total interest. So let's say you do have $1.1 million and they still have a 3.5% dividend year, you'll make around $40,000. So if SCHD do not increase their dividends from now over the next 35 years and they still have a dividend year, so let's say you have a $1.1 million portfolio and SCHD do not increase their dividends for the next 35 years, so let's just say it stays at 3.59, it doesn't go up at all. You'll have, you'll be bringing in around $40,000 in dividend income every single year. You could retire with that money and do whatever you wanna do with it. Remember, this is passive income. You do absolutely nothing at all. It's not like you own real estate and you have to go check on these houses. No, this is passive income. You're doing nothing at all and you bring it in around $40,000 every single year considering if SCHD do not increase their dividends over the next 35 years. And there we go, dreamers. That is an ETF that is highly talked about inside the dividend investing community. I'm definitely gonna do more research on SCHD and I'm probably gonna start to set up re-encuring investments so that I can start building out my portfolio in SCHD. I'm not telling you guys to do it, you guys probably need to do your own research but I'm probably gonna start building out my portfolio in SCHD. Now, once again, if you guys do wanna get started, I'm gonna leave a link down to Moomoo, the sponsor of this video in the description. Sign up, get some free stocks guys do not miss out on that opportunity. And if you wanna have any more input on future videos I should do, make sure you scroll down, hit the subscribe button and let me know down in the comment section what's some other companies that you guys been looking at what's some video topics you think I should cover. Remember, only around 30% of you guys are subscribed, that's watching this video. If you're a part of that 60%, let's go ahead and flip that, hit that subscribe button. Subscribe to the channel, recommend. What you want me to cover, you want me to show you how to make money, we want me to show you some side hustles, you want me to show you real estate, dividend income, passive income. Let me know down in the comment section but don't you drop a comment down there if you have not subscribed. So make sure you guys subscribe to this channel first, hit that thumbs up button that helps out this channel more than you can even imagine. But before we go, let me know down in the comment section have you already been investing into SCHD if not, let me know some other ETLs or some other dividend payer companies you have been investing into that's been showing you some success over the last couple years down in the comment section. But other than that, I'm Zeke, bringing you the dream green show and I'm out, peace.