Schwab U.S. Dividend Equity ETF (SCHD) Offers Reliable Growth and High Yield
For investors seeking reliable dividend growth, the Schwab U.S. Dividend Equity ETF (SCHD) presents an attractive option. With an investable universe of approximately $30 trillion for dividend lovers, SCHD stands out with its focus on consistent dividend about and a robust yield.
SCHD, launched in 2011, tracks the Dow Jones U.S. Dividend 100 Index and has seen both its dividend and market price trend higher over time. As of September 29, 2025, it holds 103 companies, including prominent names like AbbVie Inc., Coca-Cola, Amgen Inc., and Cisco Systems. The ETF employs a market cap weighting approach and updates its holdings annually.
SCHD's selection process involves scoring companies based on cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate. This approach aims to balance yield, price appreciation, and dividend growth. The ETF has an expense ratio of just 0.06% and offers a dividend yield of around 3.7%, more than triple that of an S&P 500 index ETF.
With an investable universe of around $30 trillion for dividend-focused investors, SCHD's commitment to consistent dividend growth and its high yield make it an appealing choice. Backed by a robust selection process and a track record of steady performance, SCHD is worth considering for income-oriented portfolios.
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