Schwab US Dividend Equity ETF

SCHD

Börsenwert 115 Mrd. $

Six Dividend Aristocrats shoulder a big chunk of SCHD's 3.8% yield, but two of them are paying dividends that their earnings barely cover. Here is how close to the edge each one actually sits.

SCHD and SCHG split the same $300,000 in opposite directions depending on which measuring stick you pick, and the one most investors grab first may be the wrong one for their situation.

This diversified dividend portfolio targets a 4.67% weighted average yield and 7.14% three-year dividend growth CAGR, balancing income and growth. Schwab US Dividend Equity ETF forms the portfolio's core, complemented by high-yield funds (Cohen & Steers Quality Income Realty Fund, Blackstone Secured Lending Fund) and select equities with strong dividend growth or high payout potential. Stock selection is guided by The Allocation Compass' proprietary Risk-Reward Rating System, emphasizing risk-adjusted returns and sustainable dividend profiles.

The Schwab U.S. Dividend Equity ETF (SCHD) looks for elements of balance sheet strength, yield, and dividend growth in its stock selection process. The Vanguard High Dividend Yield ETF (VYM), on the other hand, is more of a pure high-yield play.

SCHD has become the default dividend ETF for American investors, but Schwab runs a similar fund built entirely from foreign companies at a rock-bottom cost. Whether it belongs in your portfolio depends on a performance gap that cuts both ways.

A $100,000 stake in iShares Core Dividend Growth ETF (NYSEARCA:DGRO) bought on Oct 10, 2016 is worth $356,717 today.

The Schwab U.S. Dividend Equity ETF (SCHD) holds 102 stocks that pay high dividends, with the fund currently paying a dividend yield of 3.32%. Higher interest rates or even a bursting AI bubble might not hurt SCHD as much because its holdings are less exposed to the tech industry.

Dividend ETFs are often viewed through yield and income. My analysis shows performance is driven far more by three other ingredients. I dig into seven popular dividend ETFs and uncover what's really driving returns beneath the income-focused marketing and familiar ticker symbols. The biggest takeaway: choosing a dividend ETF isn't just choosing an income stream.

Based on the history of the most recent bear market in 2022, “recession-proof” stocks like energy, healthcare, and consumer staples tend to be safer choices. The Schwab U.S. Dividend Equity ETF (SCHD) holds a portfolio of 102 stocks with heavy weighting toward these “safer” defensive industry sectors.

Three international dividend ETFs quietly cleared a bar that most U.S. investors assumed only domestic funds could reach, outpacing the S&P 500 while handing investors a yield greater than SCHD.