SCHD (Schwab US Dividend Equity ETF) is one of the most popular dividend ETFs in the US, with over $60 billion in assets under management. It charges just 0.06% and tracks the Dow Jones US Dividend 100 Index — a quality-screened selection of ~100 dividend-paying US companies. Here is a complete 2026 review of SCHD’s holdings, performance, yield, and how it compares to VYM, DGRO, and HDV.
SCHD Quick Facts (2026)
| Metric | Value |
|---|---|
| Full name | Schwab US Dividend Equity ETF |
| Ticker | SCHD |
| Index tracked | Dow Jones US Dividend 100 Index |
| Expense ratio | 0.06% |
| AUM | ~$60B+ |
| Number of holdings | ~100 |
| Dividend yield (trailing 12M) | ~3.4%–3.8% |
| Dividend frequency | Quarterly |
| Inception | October 2011 |
What Index Does SCHD Track?
SCHD tracks the Dow Jones US Dividend 100 Index, which selects stocks using a multi-factor quality screen:
Step 1 — Eligibility:
- Must have paid dividends for at least 10 consecutive years
- Must not be a REIT (real estate investment trust)
- Minimum $500 million market capitalisation
Step 2 — Ranking (four factors, equally weighted):
- Cash flow to total debt ratio (financial strength)
- Return on equity (profitability)
- Dividend yield (income)
- 5-year dividend growth rate (income growth)
Step 3 — Diversification:
- No sector can exceed 25% of the fund
- No single stock can exceed 4.5%
- Final 100 stocks selected and weighted by float-adjusted market cap
This screening process prioritises financially healthy companies with growing dividends — not just the highest current yields.
SCHD Holdings (Top 10, approximate 2026)
| Stock | Sector | Approx. Weight |
|---|---|---|
| Cisco Systems (CSCO) | Technology | ~4.5% |
| Altria Group (MO) | Consumer Staples | ~4.3% |
| Verizon Communications (VZ) | Communications | ~4.2% |
| Lockheed Martin (LMT) | Industrials | ~4.2% |
| Amgen (AMGN) | Healthcare | ~4.1% |
| Chevron (CVX) | Energy | ~4.0% |
| BlackRock (BLK) | Financials | ~3.8% |
| AbbVie (ABBV) | Healthcare | ~3.7% |
| Texas Instruments (TXN) | Technology | ~3.5% |
| Pfizer (PFE) | Healthcare | ~3.4% |
Holdings change quarterly; verify current weightings at Schwab.com.
What you will NOT find in SCHD: Amazon, Apple, Microsoft, Alphabet, Meta — these tech giants either don’t meet the 10-year dividend history requirement or are filtered by the quality screen. This gives SCHD a lower technology concentration than most broad market ETFs.
SCHD Performance History
SCHD has delivered strong total returns since its 2011 inception:
| Period | SCHD Total Return (approx.) |
|---|---|
| 1-year (2025) | ~15%–18% |
| 5-year annualised | ~12%–14% |
| 10-year annualised | ~11%–13% |
| Since inception (2011) | ~12%–14% |
Returns vary with market conditions; check Schwab.com for current figures.
SCHD’s total return (price appreciation + dividends reinvested) has generally matched or outperformed the S&P 500 in periods with higher interest rates or value-oriented markets, while underperforming in growth-heavy technology bull markets.
SCHD Dividend Growth History
One of SCHD’s most valued characteristics is consistent dividend growth:
| Year | Annual Dividend Per Share (approx.) | Growth |
|---|---|---|
| 2014 | $0.96 | — |
| 2016 | $1.19 | +24% over 2 years |
| 2018 | $1.58 | +33% over 2 years |
| 2020 | $1.94 | +23% over 2 years |
| 2022 | $2.72 | +40% over 2 years |
| 2024 | $2.90 | +7% over 2 years |
The dividend has grown roughly 10%–14% per year on average since inception. A $10,000 investment in SCHD in 2011 that paid $55 in annual dividends now produces approximately $250+ in annual dividends — a yield on cost above 2.5% that grows each year.
SCHD vs. VYM: Head-to-Head
The most common comparison for dividend ETF investors:
| Feature | SCHD | VYM (Vanguard High Dividend Yield) |
|---|---|---|
| Expense ratio | 0.06% | 0.06% |
| Holdings count | ~100 | ~400 |
| Dividend yield | ~3.4%–3.8% | ~3.7%–4.0% |
| 5-year dividend growth | ~11%/yr | ~6%/yr |
| Index | Dow Jones US Dividend 100 | FTSE High Dividend Yield |
| Technology weight | Low | Low |
| Quality screen | Yes (FCF/debt, ROE) | Primarily yield-based |
| 10-year total return | Slightly higher | Slightly lower |
Summary: VYM offers higher current yield and broader diversification. SCHD offers stronger dividend growth, a quality screen, and a better 10-year total return track record. Both have the same 0.06% expense ratio.
Most long-term dividend investors prefer SCHD for its combination of quality, growth, and income.
SCHD vs. DGRO and HDV
| ETF | Sponsor | ER | Yield | Focus |
|---|---|---|---|---|
| SCHD | Schwab | 0.06% | ~3.5% | Quality dividend growth |
| VYM | Vanguard | 0.06% | ~3.8% | High current yield |
| DGRO | iShares | 0.08% | ~2.5% | Dividend growth (lower yield, more growth) |
| HDV | iShares | 0.08% | ~4.0% | High yield, quality screen |
DGRO is better for investors who want maximum dividend growth at the expense of current yield. HDV is better for investors who want the highest defensible yield. SCHD sits in the sweet spot: good current yield (~3.5%) + strong growth + quality screen.
Tax Considerations
SCHD dividends are qualified dividends — taxed at long-term capital gains rates (0%, 15%, or 20% depending on income) rather than ordinary income rates. This makes SCHD significantly more tax-efficient than bond interest or REITs.
For Roth IRA investors: SCHD in a Roth IRA is particularly powerful — dividends compound tax-free and qualified withdrawals after age 59½ are completely tax-exempt.
For taxable account investors: SCHD’s qualified dividends are taxed at 0% for most middle-income households (below ~$94,000 for single filers in 2026) and 15% for most others.
Who Is SCHD Best For?
- Income investors who want a growing dividend stream rather than the highest possible current yield
- Retirement portfolio builders who want a reliable, growing income source in retirement
- Quality-focused investors who want companies with strong balance sheets and consistent dividends
- Tax-efficient investors who prefer qualified dividends over ordinary income (REIT dividends, bond interest)
- Long-term investors who can hold through market cycles — SCHD’s quality screen helps it recover well after downturns
Key Takeaways
- SCHD charges 0.06% — one of the cheapest dividend ETFs available
- Tracks the Dow Jones US Dividend 100 Index: a quality screen requiring 10 years of dividends, financial health filters, and diversification rules
- Dividend yield ~3.4%–3.8% with ~10%–14% average annual dividend growth since 2011
- Outperforms VYM on 10-year total return and dividend growth; VYM has higher current yield
- Qualified dividends make SCHD tax-efficient in taxable accounts; even more powerful in a Roth IRA
For the full Schwab ETF lineup, see our Schwab ETF investing guide. For opening a Schwab account to buy SCHD, see our Schwab account opening guide.
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