SCHD Dividend ETF: Data Shows It Still Leads for Income

Yield and Dividend Growth

The Schwab U.S. Dividend Equity ETF (SCHD) continues to stand out among dividend-focused exchange-traded funds. Its current dividend yield of 3.1% exceeds that of comparable funds such as the Vanguard High Dividend Yield ETF (VYM) at 2.2%, the iShares Core Dividend Growth ETF (DGRO) at 1.9%, and the Vanguard Dividend Appreciation ETF (VIG) at 1.5%.

In terms of dividend growth, SCHD has increased its dividend by approximately 210% over the past five years. This growth rate is notably higher than that of DGRO and both Vanguard funds during the same period.

Cost and Total Return Comparison

SCHD's annual expense ratio of 0.06% is slightly higher than the 0.04% charged by the two Vanguard ETFs. However, the difference is minimal and may be offset by SCHD's higher yield.

When examining total returns over the last decade, DGRO has generated a 254% return, while SCHD has returned about 244%. Despite this slight underperformance, SCHD has delivered the highest total return among its peers over the trailing 12 months, indicating strong recent performance.

What It Means for Income Investors

For those prioritizing passive income, SCHD's combination of a high yield, robust dividend growth, and low cost makes it a compelling option. While its long-term total return trails DGRO slightly, its recent performance and income characteristics remain attractive.

Reporting based on: Yahoo Finance. Figures verified against market data where available.