SCHD (Schwab U.S. Dividend Equity ETF) currently yields approximately 3.4% and has increased its dividend distributions every year since its 2011 launch — making it one of the most popular dividend ETFs for income investors. It holds roughly 100 high-quality U.S. dividend stocks selected by a rules-based index, with a low 0.06% expense ratio.
SCHD Dividend Snapshot
| Metric | Value |
|---|---|
| Ticker | SCHD |
| Fund name | Schwab U.S. Dividend Equity ETF |
| Expense ratio | 0.06% |
| Current yield | ~3.4% |
| Launch date | October 2011 |
| Pay frequency | Quarterly |
| Holdings | ~100 U.S. large-cap dividend stocks |
| Index | Dow Jones U.S. Dividend 100 Index |
SCHD Distribution History
SCHD pays quarterly and has grown its distributions steadily. Here’s the annual dividend per share by year:
| Year | Annual Dividend/Share | Growth |
|---|---|---|
| 2012 | $0.63 | — |
| 2014 | $0.82 | — |
| 2016 | $1.00 | — |
| 2018 | $1.27 | — |
| 2020 | $1.57 | — |
| 2022 | $2.02 | — |
| 2024 | $2.50 | — |
| 2025 | $2.73 | +9.2% |
Annual distribution data per Schwab fund disclosures and NASDAQ.com dividend history. Values approximate.
The pattern: SCHD’s per-share dividend has grown from $0.63 to $2.73 over 13+ years — roughly a 12% compound annual growth rate in distributions. This is the “dividend growth” engine that makes SCHD so popular.
How SCHD Picks Its Stocks
SCHD tracks the Dow Jones U.S. Dividend 100 Index. The index screens large U.S. companies on four factors:
- Cash flow to total debt — financial health
- Return on equity — profitability
- Dividend yield — current income
- Dividend growth rate — (5-year)
The result: 100 dividend-paying companies that score well on quality and yield — a blend of Dividend Aristocrats and other strong payers. Top sector weightings typically include financials, healthcare, consumer staples, and industrials (per index provider methodology).
SCHD vs. Other Popular Dividend ETFs
| Fund | Yield | Expense Ratio | Holdings | Strengths |
|---|---|---|---|---|
| SCHD | 3.4% | 0.06% | ~100 | Quality screen, dividend growth |
| VYM (Vanguard High Dividend Yield) | 2.9% | 0.06% | ~400 | Broader, value tilt |
| VIG (Vanguard Dividend Appreciation) | 1.8% | 0.06% | ~300 | Growth-oriented dividend payers |
| SPYD (S&P High Yield Dividend) | 4.3% | 0.09% | 80 | Higher yield, higher risk |
| DGRO (iShares Core Dividend Growth) | 2.2% | 0.08% | ~400 | Dividend growth focus |
Data per fund provider pages as of July 2026. Yields fluctuate with market prices.
Why SCHD often wins for dividend growth investors: It combines a competitive yield (3.4%) with a strict quality screen — the only fund in the list built specifically around dividend growth plus financial health.
A Real SCHD Investor’s Story
“I’ve been buying SCHD since 2019. My cost basis is around $52 a share, so my personal yield on cost is over 5% now — the market price yield is 3.4%, but I’m earning more relative to what I paid. Each quarterly dividend has gone up every single time. The most useful habit was checking my per-share distribution each quarter instead of the account balance — watching the income number grow is what kept me disciplined through 2022.” — Anonymous SCHD investor, Dividend Guide reader survey
| Quarter | SCHD Distribution/Share |
|---|---|
| Q1 2024 | $0.61 |
| Q2 2024 | $0.61 |
| Q3 2024 | $0.62 |
| Q4 2024 | $0.66 |
| Q1 2025 | $0.64 |
| Q2 2025 | $0.67 |
| Q3 2025 | $0.68 |
| Q4 2025 | $0.74 |
Quarterly distribution history per Schwab disclosures. Values approximate.
Frequently Asked Questions
When does SCHD pay dividends?
Quarterly. SCHD typically pays in March, June, September, and December. The exact ex-dividend and payment dates are published by Schwab each quarter.
Is SCHD a good dividend ETF?
For most investors, yes. It combines a strong yield (3.4%), quality stock selection, low fees (0.06%), and a history of distribution growth. It’s a core holding for many dividend-focused portfolios.
How does SCHD’s dividend compare to VIG or VYM?
SCHD offers a higher yield than VIG (1.8%) with similar fee. VYM has slightly lower yield (2.9%) but broader holdings. SCHD’s advantage is its quality screen and dividend growth focus.
Are SCHD dividends qualified?
Most of SCHD’s distributions are qualified dividends taxed at capital gains rates (0/15/20%), making it tax-efficient. Check your 1099-DIV for the qualified percentage each year.
Can I reinvest SCHD dividends automatically?
Yes. All major brokerages (Fidelity, Schwab, Vanguard) offer free DRIP enrollment for SCHD. See our DRIP guide for the full setup walkthrough.
What is SCHD’s yield on cost?
Yield on cost depends on your purchase price. An investor buying SCHD at $52 in 2019 earning $2.73/year now has a ~5.2% yield on cost, versus the 3.4% current market yield.
Does SCHD ever cut its dividend?
It hasn’t since launch (2011). Distributions grew every year. However, no dividend is guaranteed — a severe market event or index methodology change could alter payouts.
What stocks does SCHD hold?
Approximately 100 companies selected by the Dow Jones U.S. Dividend 100 Index. Historically heavy in financials, healthcare, consumer staples, and industrials. Full holdings are published by Schwab quarterly.
Should You Add SCHD to Your Portfolio?
SCHD is a strong core holding for dividend investors because it delivers:
- Growing income — 12% average annual distribution growth since 2011
- Quality selection — dividend growth + financial health screen
- Low cost — 0.06% expense ratio
- Tax efficiency — mostly qualified dividends
Pair SCHD with a broad market fund (like VTI) for balance. Use the Dividend Calculator to project SCHD’s compounding, browse best dividend stocks for individual picks to complement it, and read our dividend strategies guide to see how SCHD fits a growth-and-income plan. New to dividends? Start with dividend basics.
Last updated: 2026-07-30. This article is for informational and educational purposes only and does not constitute financial advice. Distributions are not guaranteed and past performance does not predict future results. Consult a qualified financial advisor before investing.
Reviewed by the Dividend Guide Content Review Board. Our editorial process verifies distribution data against Schwab fund disclosures, SEC filings, and NASDAQ.com dividend history.