SCHD, a moderate Buy consensus rating

 

Why Schwab’s SCHD ETF is a No-Brainer for Risk Conscious Investors

On Wall Street, SCHD earns a Moderate Buy consensus rating based on 55 Buys, 43 Holds, and two Sell ratings assigned in the past three months. The average analyst SCHD price target of $31.38 implies an 11.38% upside potential from current levels.

 

Notably, the stocks held by SCHD with the highest upside potential include Guess (GES), Leggett & Platt (LEG), and Apa Corp (APA). In contrast, the stocks with the highest downside potential are The Hershey Company (HSY), Bank of Hawaii (BOH), Paychex (PAYX), and Altria (MO).

 

SCHD is a Safe Bet in a Dangerously Risky Market

Putting it all together, SCHD is a solid choice for long-term investors who want to mitigate market volatility and invest in a diversified group of inexpensive, blue-chip dividend stocks. The added bonus is that SCHD’s stock picks are executed in accordance with strong fundamentals, seeking to maximize returns while minimizing risk. If seeking to profit from the ongoing tech renaissance, it may be a good idea to hedge and diversify as much as reasonably possible. I’m bullish on SCHD based on its inexpensive holdings, attractive dividend yield history of dividend growth, and cost-effective expense ratio while maintaining exposure to the hottest sector in the stock market.