Michael J. Reynolds
Founder, SCHD Tools
Credentials
Our Story
After spending over 15 years in the financial services industry, including 8 years as a portfolio manager at Fidelity Investments and 3 years at a boutique wealth management firm, I realized that many individual investors lacked access to the analytical tools that professionals use to make informed investment decisions.
My own journey with dividend investing began in 2012, shortly after SCHD was introduced to the market. I was immediately drawn to its methodology of focusing on quality companies with consistent dividend growth rather than simply chasing high yields.
Over the years, I developed proprietary models and calculators to analyze SCHD's performance and project its potential returns under various scenarios. These tools proved invaluable for my personal investing strategy and for the clients I advised.
In 2023, I decided to make these tools accessible to everyone by creating SCHD Tools. My mission is to democratize access to sophisticated dividend investment analysis and help individual investors build sustainable passive income streams for their financial independence.
Our Approach
Data-Driven Analysis
We believe in making investment decisions based on concrete data rather than emotions or market hype. All our calculators use historical performance data and adjustable parameters to provide realistic projections.
Educational Focus
Beyond just providing tools, we're committed to helping investors understand the concepts behind dividend investing. Each calculator includes explanations and context to support informed decision-making.
Long-Term Perspective
We focus on long-term wealth building rather than short-term trading or market timing. Our tools are designed for investors who understand that dividend compounding is a marathon, not a sprint.
Transparency
We're transparent about the limitations of forecasting. All our tools include disclaimers about past performance not guaranteeing future results, and we strive to present realistic expectations rather than overpromising.
My Personal Investing Journey
My interest in dividend investing started during my MBA studies at Wharton School of Business. While researching dividend aristocrats for a class project, I was fascinated by how consistently growing dividends could compound over time to create substantial wealth.
After graduation, I began my career at JP Morgan, where I worked with high-net-worth clients to build income-focused portfolios. This experience taught me the importance of quality over yield and the power of dividend reinvestment.
In 2012, I started building my personal dividend portfolio with an initial investment of $50,000, focusing on quality companies with strong dividend growth records. Over the years, I've refined my strategy and eventually discovered SCHD as an efficient way to gain exposure to quality dividend stocks.
Today, my personal portfolio generates over $65,000 in annual dividend income, with SCHD making up approximately 25% of my holdings. I've experienced firsthand how the dividend snowball effect can transform modest investments into significant income streams over time.
My personal success with dividend investing and the constant questions I received from friends and colleagues about my strategy led me to create SCHD Tools as a way to share my knowledge and tools with a broader audience.
My Dividend Investing Philosophy
After analyzing hundreds of dividend-paying companies and ETFs throughout my career, I've developed a clear investing philosophy centered on these principles:
Quality over yield
Companies with moderate yields but strong dividend growth often outperform high-yield stocks long-term.
Sustainable payout ratios
Lower payout ratios provide room for future dividend increases and business reinvestment.
Consistent growth history
Companies that have increased dividends through multiple economic cycles demonstrate resilience.
Reinvestment discipline
Consistently reinvesting dividends is crucial for maximizing the compounding effect.
Patience and time horizon
The true power of dividend investing emerges over decades, not months or years.
These principles are embedded in the design of all the tools on this website. SCHD embodies many of these characteristics, which is why it has become a cornerstone holding for many dividend investors, including myself.
Join Our Community
I regularly share new insights, tool updates, and dividend investing strategies with our community. Join thousands of fellow dividend investors who are building their financial future with SCHD and other quality dividend investments.
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