Can You Trust THIS Stock? FDVV vs SCHD Dividend ETF

Summary

In this weekly stock market update, Joseph Hogue compares the Schwab Dividend Equity ETF (SCD) with the increasingly popular Fidelity High Dividend ETF (FDVV). While the SCD offers a reliable 3.5% yield from quality companies, FDVV's 2.8% yield raises concerns about its classification as a high-dividend fund, especially given its focus on growth stocks like Apple and Nvidia. Hogue discusses the risks of misleading investors and highlights key earnings reports from PayPal, Sofi Technologies, and Super Micro Computers, emphasizing the importance of understanding investment strategies in a potentially volatile market.

Takeaways

• 😀 The importance of nutrition education in promoting healthy eating habits.
• 😀 Carbohydrates are essential for energy, but their quality and quantity should be managed.
• 😀 Understanding the role of different types of carbohydrates can help improve digestive health.
• 😀 The benefits of dietary fiber in maintaining gut health and preventing chronic diseases.
• 😀 Practical tips for incorporating healthy carbohydrate sources into daily meals.
• 😀 The impact of processed carbohydrates on overall health and how to minimize intake.
• 😀 Strategies for reading food labels to make informed choices about carbohydrate content.
• 😀 The significance of balanced meals that include carbohydrates, proteins, and fats.
• 😀 Recognizing individual dietary needs and how they influence carbohydrate consumption.
• 😀 Encouraging community resources and support for individuals seeking to improve their nutrition.

Q & A

What is the main focus of Joseph Hog's weekly stock market update?

The main focus is to provide insights on stocks to watch, important market news, and updates on specific ETFs, particularly the Schwab Dividend Equity ETF (SCD) and the Fidelity High Dividend ETF (FDVV).

How does Joseph Hog compare the Schwab Dividend ETF (SCD) and the Fidelity High Dividend ETF (FDVV)?

He notes that while the SCD has a higher dividend yield of 3.5% and is based on quality U.S. stocks, the FDVV has a lower yield of 2.8% but has shown a significant return of 35% over the last year.

What concerns does Hog raise about the FDVV?

Hog expresses concern that the FDVV does not meet the expectations of investors looking for high dividend stocks, as many of its holdings do not pay substantial dividends despite the fund's name suggesting otherwise.

Which stocks are prominently featured in the FDVV's holdings?

The FDVV's top holdings include major companies like Apple, Nvidia, Microsoft, Procter & Gamble, and Exxon, but Hog points out that most of these have low dividend yields.

What is Joseph Hog's opinion on the performance of the Fidelity FDVV?

He believes the FDVV has performed well in terms of returns, but warns that its structure may mislead dividend investors about the true nature of the investment.

What other stocks does Hog mention as ones to watch this week?

Hog mentions PayPal, SoFi Technologies, and Super Micro Computers as stocks to watch, especially with their upcoming earnings reports.

What is the expected performance of PayPal's Q3 earnings, according to Hog?

Hog expects PayPal's Q3 earnings to show a decline of 18% in profits from the previous year, indicating potential weakness despite its stock having risen significantly.

Why does Hog consider SoFi Technologies a long-term growth pick?

He considers it a top pick due to its strong revenue growth and increasing membership, but cautions that its current valuation may be high for a bank stock.

What are Hog's thoughts on the consumer staples sector?

Hog notes that the consumer staples sector has lagged behind the overall market this year due to persistent inflation, but suggests it may hold up well during market weaknesses.

What does Hog predict for the upcoming earnings reports of major tech companies?

Hog predicts that the earnings reports from major tech companies will significantly impact market direction, as these companies are expected to report strong growth in contrast to other companies in the index.