■ Analysis · August 13, 2026
DGRO's Looser Dividend Screen Outperformed SCHD Over the Past Decade
DGRO returned 257% vs SCHD's 235% over 10 years, despite SCHD's stricter quality screen and lower fee.
Performance Comparison
Over the past ten years, the iShares Core Dividend Growth ETF (DGRO) delivered a price return of 257.35%, while the Schwab US Dividend Equity ETF (SCHD) returned 235.33%. This 22-percentage-point gap highlights the impact of different stock selection methodologies on long-term results. DGRO's net expense ratio is 0.08%, slightly higher than SCHD's 0.06%, but the fee difference is minimal and unlikely to account for the performance divergence.
Methodology and Holdings
SCHD requires companies to have at least 10 consecutive years of dividend payments before ranking them based on cash flow to debt, return on equity, dividend yield, and five-year dividend growth. This stricter screen results in a portfolio of approximately 103 stocks, with significant concentration in top holdings: QUALCOMM at 6.74%, Texas Instruments at 5.90%, and UnitedHealth at 5.09%. In contrast, DGRO's looser eligibility criteria allow it to hold around 400 stocks, providing broader diversification and exposure to companies with shorter dividend histories but potentially stronger growth.
Over the past five years, DGRO returned 69.56% versus 58.06% for SCHD, further illustrating the opportunity cost of SCHD's restrictive screen. DGRO's broader approach, however, may involve more trading and potential taxable distributions, as noted in its prospectus.
Yield and Distributions
SCHD's methodology emphasizes current dividend yield, historically resulting in a higher portfolio yield. DGRO paid $1.477673 per share over the trailing 12 months, including a most recent quarterly distribution of $0.330603. While SCHD offers a higher yield, its concentrated portfolio has lagged DGRO on total return over the decade examined.
What it means for income investors
The performance gap between DGRO and SCHD underscores that stricter screens can exclude winning stocks. Investors comparing dividend ETFs should consider not only yield and fees but also the breadth of holdings and the potential for long-term growth.
Reporting based on: 247wallst.com. Figures verified against market data where available.