■ ETF · August 23, 2026
SCHD Dividend Growth Projections to 2035
SCHD's historical performance suggests potential share price and dividend growth by 2035, but future returns depend on underlying holdings.
Historical Performance and Projections
The Schwab U.S. Dividend Equity ETF (SCHD) has delivered an annualized total return of 13.4% since its inception in 2011. Its dividend has grown at a compound annual rate of 11.2% since 2017. If these trends continue, the share price could rise from $35 to approximately $90 by the end of 2035, representing a gain of over 150%. Meanwhile, the annualized dividend per share could increase from $1.05 to more than $2.90, resulting in a yield on cost exceeding 8%.
Underlying Holdings and Dividend Growth
SCHD tracks an index of 100 high-yielding dividend stocks, which is reconstituted annually. The current group of companies has grown their dividends at a 9.4% annualized rate over the last five years, slightly faster than the previous iteration's 8.6% average. However, if the fund's dividend growth rate slows in the future, actual results could fall short of these projections.
Factors Influencing Future Returns
The fund's long-term record indicates a focus on companies that combine above-average dividend growth with stock price appreciation. This approach has historically contributed to SCHD's performance. Nevertheless, future returns are subject to market conditions and the performance of the underlying holdings.
What it means for income investors
SCHD's historical data suggests potential for significant income growth, but actual results will depend on the fund's ability to maintain its dividend growth trajectory. Investors should consider the fund's track record and the sustainability of its underlying companies' dividends.
Reporting based on: Yahoo Finance. Figures verified against market data where available.