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April 8, 2025

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In Stocks

SCHD ETF: Top 3 reasons to buy the dip of this dividend stock

3 Mins Read

The Schwab US Dividend Equity ETF (SCHD) has crashed and moved into a correction in the past few days as jitters on trade escalated. It tumbled to a low of $24 on Monday, its lowest level since February 9. This article explains why it makes sense to buy and hold the SCHD ETF dip.

SCHD dividend yield is rising

The SCHD ETF is a popular fund that investors buy because of its long track record of dividends. It has one of the best track records regarding dividend growth in the stock market. Data shows that the ten-year compounded annual growth rate (CAGR) of the fund in the past decade stands at over 13%.

The benefit of buying the SCHD fund dip is that its dividend yield rises as the stock crashes, offseting some of the losses. For starters, the dividend yield is calculated by dividing the annual dividend per share by the price per share and then multiplying by 100. 

Therefore, if the price per share falls and the annual dividend remains the same, the yield increases. That’s because the dividend yield becomes a larger percentage of the lower share price.

This explains why the dividend yield of the SCHD ETF has continued rising in the past few days as the stock crashed. It now has a yield of about 4.1%, higher than where it was earlier this year when it surged to a record high. 

It also explains why popular stock ETFs like those that track the S&P 500 and Nasdaq 100 indices have a tiny dividend yield.

Exposure to US tariffs

The other reason to buy the SCHD stock dip is that Donald Trump’s tariffs will not substantially affect many companies in the fund. Ideally, the most exposed companies are those that are in the cross-border trading industry. 

The biggest component of the SCHD fund is financials, a sector that is largely immune to these tariffs. The top financials companies in this fund are Fifth Third Bancorp, Cincinnati Financial Corp, Regions Financial, Comerica, and Columbia Banking System.

Trump has not applied any tariffs on services, and many of these companies are domestic ones. Therefore, tariffs in themselves will not affect them. It may affect them if the US goes into a recession, leading to another crisis in the regional banking industry.

These tariffs will not impact the other top SCHD ETF constituents. Verizon, the biggest component, is a telecom company that offers essential services in the US. Customers will not cancel their subscriptions even if the US move into a recession. 

Other top SCHD firms like Coca-Cola, PepsiCo, ConocoPhilips, Chevron, Altria, Amgen, and Bristol Myers Squibb will not be impacted since they offer essential services.

Stocks will recover after the panic

Fear and greed index chart

The other reason to buy the Schwab US Dividend Equity ETF applies to other US stocks as well. Historically, these assets tend to bounce back after the initial panic. For example, they crashed after the COVID-19 pandemic, dot com bubble, the Great Financial Crisis (GFC), and the Great Depression.

Therefore, there is a likelihood that the same will happen this time. That will happen if the Federal Reserve starts cutting interest rates and if the US negotiates with other countries like Japan, China, and the European Union. Remember that Trump views the stock market as the most visible gauge of his performance as the president.

The post SCHD ETF: Top 3 reasons to buy the dip of this dividend stock appeared first on Invezz

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In World news

PH Govt confirms MMCI’s Financial Capability, MPSA Now Permanent

3 Mins Read

Celsius Resources Limited (“Celsius” or “CLA”) (ASX, AIM: CLA) is pleased to announce that its Philippine affiliate, Makilala Mining Company, Inc. (“MMCI” or the “Company”), has received formal confirmation from the Philippine Department of Environment and Natural Resources (“DENR”) that it has satisfied the final financial compliance requirement under its Mineral Production Sharing Agreement for the Maalinao-Caigutan-Biyog Copper-Gold Project (“MCB” or the “Project”)1.

HIGHLIGHTS

  • The Philippine Department of Environment and Natural Resources (DENR has formally accepted the binding term sheet which outlines the key terms of a bridge loan facility between Maharlika Investment Corporation (MIC) and Makilala Mining Company, Inc. (MMCI) as sufficient proof of financial capability.
  • This confirmation marks MMCI’s full compliance with the remaining provisional requirements of the Mineral Production Sharing Agreement (MPSA) for the MCB Copper-Gold Project, locking the MPSA for a full 25 years, renewable for another 25.

This follows the DENR’s acceptance of the binding term sheet which outlines the key terms of a bridge loan facility of up to USD76.4 million, executed between MMCI and Maharlika Investment Corporation (“MIC”), a government-owned and controlled corporation, in February 20252 (“Binding Term Sheet”). The Binding Term Sheet was evaluated and endorsed by the Mines and Geosciences Bureau (“MGB”) which noted that:

  • The Binding Term Sheet provides a structured and credible financial mechanism for MMCI’s mining operations; and
  • The involvement of MIC significantly enhances MMCI’s financial standing and credibility, offering strong assurance of continued support.

MMCI is expected to submit all related and forthcoming financial documents to the DENR and MGB and to update its Three-Year Development/Utilisation Work Program accordingly, in line with the terms of the MPSA and DENR Administrative Order No. 2010-213.

Celsius Executive Chairman Atty. Julito R. Sarmiento, said:

“We are extremely pleased to have achieved this important regulatory milestone for the MCB Project. The acceptance of the Binding Term Sheet by the DENR and the MGB is not only a testament to MMCI’s commitment to responsible and well-funded development, but also reflects the strong support and credibility provided by our partnership with Maharlika Investment Corporation.

On behalf of CLA and MMCI’s management and staff, again, I would like to extend my heartfelt gratitude to MIC for their confidence and catalytic funding support to the Project, and to the DENR and MGB for their professionalism and guidance throughout the compliance process.

We remain committed to ensuring that the MCB project delivers lasting and sustainable economic benefits to our host communities, particularly in Balatoc, the Municipality of Pasil, and the Province of Kalinga, as well as meaningful contributions to national development, all while upholding environmental stewardship and shared prosperity.

Now that we have fulfilled our compliance with the conditions of the Mineral Production Sharing Agreement, we are in a strong position to proceed with mine development and construction. We remain steadfast on our commitment to sustainable development by balancing resource efficiency with environmental stewardship and social responsibility.”

MIC and MMCI will now proceed with signing the Omnibus Loan and Security Agreements (“Agreements”) reflecting the terms of the Binding Term Sheet signed with MIC in February 2025.

Click here for the full ASX Release

This post appeared first on investingnews.com

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In Politics

DOGE helps State Department eliminate Biden admin’s DEI performance evaluation requirement

3 Mins Read

The Department of Government Efficiency (DOGE) and the State Department called out practices under the Biden administration that required diversity, equity and inclusion (DEI) efforts to account for 20% of performance evaluations for foreign service officers.

Secretary of State Marco Rubio called the reforms of the Biden administration’s DEI policies ‘important and historic.’

‘Now our incredible Foreign Service Officers will be evaluated on true merit, not on arbitrary immutable characteristics,’ he wrote on X.

Rubio shared a post from DOGE, which noted that under the policy, diplomats were assessed on whether they avoided ‘gendered adjectives’ or ‘faint praise.’

The department shared PowerPoint slides providing examples of phrases to avoid.

One of the slides gave descriptive phrases that can unintentionally influence a reader. It then gave examples of gendered adjectives like, ‘Dr. Sarah Gray is a caring compassionate physician’ vs. ‘Dr. Joel Gray has been very successful with his patients.’

Faint praise was also discouraged. One example the slide provided was, ‘S/he worked hard on projects that s/he was assigned’ or ‘S/he has never had temper tantrums.’

The slides discouraged using first names for women or minorities and titles for men, as well.

Additionally, as DOGE pointed out in its post, the slides asked local organizations to promote diversity, equity, inclusion and accessibility (DEIA) programs, training and lectures as well as annual DEIA awards ceremonies.

The foreign service officers were also encouraged to set race and gender quotas on embassy speaking panels and other diplomatic events.

‘Working with DOGE, [Secretary Rubio] has ended this discrimination and restored merit to the foreign service,’ DOGE wrote.

The elimination of the DEIA requirement on performance evaluations for foreign service officers comes a week after the Trump administration slashed $15 million from the Institute of Museum and Library Services in the form of DEI grants to align with DOGE and President Donald Trump’s executive orders aimed at eliminating DEI from the federal government.

The grants include $6.7 million to the California State Library to enhance equitable library programs and $4 million to the Washington State Library for diverse staff development and incarcerated support. 

A $1.5M DEI grant to the Connecticut State Library system to ‘integrate social justice, diversity, equity, and inclusion’ into their daily operations is also being cut along with $700,000 for a Washington, D.C.-based nonprofit to study ‘post-pandemic DEI practices’ in American children’s museums that would formulate ‘enhanced equity-focused strategies.’

Trump’s DOGE efforts have saved the American taxpayer $140 billion, according to its website, which represents about $870 saved per taxpayer.

The Trump administration says it has slashed hundreds of millions of dollars in DEI contracts, including at least $100 million at the Department of Education.

Fox News Digital’s Andrew Mark Miller contributed to this report.

This post appeared first on FOX NEWS

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