Navigating the Trade-Off: Dividend Stocks vs. Treasuries in a Rising Yield Environment

The Schwab U.S. Dividend Equity ETF (SCHD) has been a popular choice for dividend investors seeking higher yields. However, the author argues that the strategy may no longer be as effective due to overvaluation and lack of revenue and earnings growth. The author points out that SCHD's top holdings have shown minimal revenue growth, and the ETF's performance has underperformed the market. Additionally, the author suggests that safer alternatives, such as Treasury Floating Rate Bond ETF (TFLO), offer higher yields and lower risk. As a result, the author rates SCHD as a "Sell" and advises investors to consider other options.