Schwab U.S. Dividend ETF Annual Reconstitution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Source: Fool
- Annual Reconstitution Overview: The Schwab U.S. Dividend ETF removed 22 stocks and added 25 during its annual reconstitution, reducing its energy stock allocation from 23.5% to 16.3%, while increasing consumer staples' weighting to 19.4%, indicating a strategic shift towards this sector for income generation.
- New Consumer Staples Additions: Procter & Gamble and Marzetti were added with allocations of 3.8% and 0.08%, respectively; Procter & Gamble boasts a 135-year dividend payment history and a 69-year streak of increases, qualifying it as a Dividend King, thus providing a reliable income source for the fund.
- Stability of Consumer Staples: Consumer staples stocks maintain strong demand during recessions due to their essential nature, allowing the Schwab ETF to offer stable and steadily rising dividend income throughout economic cycles, which enhances investor confidence.
- Dividend Yield Comparison: Procter & Gamble's current dividend yield of 3% is nearly triple that of the S&P 500's 1.2%, showcasing its competitiveness among high-yield stocks and adding appeal to the Schwab ETF's investment portfolio.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 75.740
Low
71.00
Averages
79.33
High
85.00
Current: 75.740
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Slowing Consumer Demand: The slowdown in consumer spending is reflected in Coca-Cola's decelerating sales growth, indicating a weakening demand for its products that may affect overall company performance.
- Stock Price Volatility: On April 17, 2026, Coca-Cola's stock price experienced fluctuations, raising investor concerns about the company's future earnings outlook, potentially leading to decreased market confidence.
- Need for Strategic Adjustment: In light of the dual pressures of rising costs and slowing demand, Coca-Cola may need to reassess its market strategy to maintain competitiveness and ensure long-term growth.
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See More
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- Cost Pressure: Coca-Cola is facing challenges with rising raw material and production costs as of April 17, 2026, which could squeeze profit margins and impact future profitability.
- Slowing Consumer Demand: The slowdown in consumer spending is reflected in Coca-Cola's decelerating sales growth, indicating a weakening demand for its products that may affect overall company performance.
- Stock Price Volatility: On April 17, 2026, Coca-Cola's stock price experienced fluctuations, raising investor concerns about the company's future earnings outlook, potentially leading to decreased market confidence.
- Need for Strategic Adjustment: In light of the dual pressures of rising costs and slowing demand, Coca-Cola may need to reassess its market strategy to maintain competitiveness and ensure long-term growth.
See More
Tilray Brands Faces Significant Challenges in Cannabis Market
- Market Value Collapse: Tilray Brands has seen its stock price plummet by 96% over the past five years, with its market cap dropping from a peak of $20 billion to just $1.5 billion, highlighting the company's struggles in a competitive legal cannabis market.
- Intensified Industry Competition: With approximately 1,000 licensed cannabis companies competing, profit margins are razor-thin, and Tilray faces significant challenges in building brand loyalty due to stringent advertising and packaging restrictions.
- Weak Revenue Growth: Despite a modest 6% increase in net revenue over the past three quarters, Tilray's operating loss remains high at around $47 million, indicating ongoing challenges in achieving profitability.
- Expansion Risks: While Tilray is diversifying into alcohol and international cannabis markets, these ventures are costly and limited in scale, leading to persistent organic growth challenges, compounded by the uncertain timeline for potential U.S. legalization reforms.
See More
Abel Reshapes Berkshire Hathaway's Investment Portfolio
- Portfolio Restructuring: New CEO Greg Abel is swiftly reshaping Berkshire Hathaway's investment portfolio by selling stocks associated with former manager Todd Combs, demonstrating his control over the approximately $300 billion portfolio.
- Management Changes: Following Combs' departure at the end of 2025, Abel is unlikely to replace him, with Ted Weschler continuing to manage about 6% of the portfolio, indicating a preference for maintaining the existing management structure.
- Core Holdings Strategy: In his annual letter, Abel emphasized a focus on core holdings such as Apple, American Express, Coca-Cola, and Moody's, which are expected to compound value over decades, reflecting a long-term investment strategy.
- Amazon Stake Reduction: Berkshire nearly eliminated 80% of its stake in Amazon in Q4 2025, with market speculation linking this decision to Combs' investment style, raising further questions about the company's investment direction.
See More
Consumer Staples Stocks Offer Steady Returns Amid Market Rally
- Coca-Cola Competitor: PepsiCo reported first-quarter 2026 revenue of $19.4 billion, an 8.5% increase, with operating profit rising 24% to $3.2 billion, demonstrating strong performance in both beverage and snack markets, despite its stock price lagging behind the S&P 500.
- Dividend Growth: With a dividend yield of 3.5%, PepsiCo's management confirmed a 4% increase in June, marking 54 consecutive years of dividend hikes, reflecting the company's commitment to shareholder returns.
- Household Brand Leader: Procter & Gamble achieved $1.3 billion in sales for 2025, a 15% increase, and projects a 13% growth for 2026, indicating strong demand in the essential goods market, even as its stock price remains stagnant.
- Dividend Stability: Procter & Gamble has raised its dividend for 70 consecutive years, currently yielding just below 3%, and announced a 3% increase on April 14, showcasing its ability to provide stable returns to shareholders amid economic fluctuations.
See More
Stability of Consumer Staples Stocks Amid Market Rally
- Coca-Cola Competition: PepsiCo competes fiercely with Coca-Cola in the beverage market, with 58% of its 2025 net revenue coming from snack brands, demonstrating the strong market demand for its diversified product portfolio.
- Strong Financial Performance: PepsiCo's Q1 2026 revenue rose 8.5% to $19.4 billion, while operating profit surged 24% to $3.2 billion, showcasing the company's resilience and profitability amid economic fluctuations.
- Dividend Growth: PepsiCo announced a 4% increase in its dividend in June, marking its 54th consecutive year of dividend increases, reflecting the company's commitment to returning value to shareholders.
- Essential Products Demand: Procter & Gamble reported $1.3 billion in sales for 2025, a 15% increase, with projections for 2026 indicating a 13% growth, highlighting its stability and sustained market demand even during economic downturns.
See More
Consumer Staples Companies Resilient to Market Volatility
- Coca-Cola's Global Reach: Coca-Cola boasts over 200 beverage varieties consumed at 2.2 billion servings daily, with a stellar adjusted operating margin of 31.2% supporting its 64 consecutive years of dividend growth, showcasing strong brand power and profitability, although its total return of 123% over the past decade lags behind the S&P 500's 300%.
- Costco's Steady Growth: With 924 locations worldwide, Costco's low prices and membership model enable it to achieve consistent same-store sales growth amid economic fluctuations, delivering a total return of 182% over the past five years, significantly outperforming the S&P 500, despite a high P/E ratio of 51.5 indicating strong market favor.
- Procter & Gamble's Resilience: Procter & Gamble's essential products like laundry detergent and toothpaste maintain steady demand during downturns, with only a 3.3% revenue dip during the 2009 recession and consistent quarterly growth during the pandemic, highlighted by 136 years of uninterrupted dividends and a total return of 127% over the past decade.
- Walmart's Market Dominance: Walmart generated $706 billion in net sales for fiscal 2026 with 10,900 stores globally, achieving a 4.5% same-store sales increase and 53 years of dividend growth, demonstrating strong competitive strength in recessions, although its current P/E of 45.7 suggests a high valuation.
See More
