SCHD ETF: $1,000 Invested a Decade Ago Would Be Worth $3,400 Today

Performance Over the Past Decade

The Schwab U.S. Dividend Equity ETF (SCHD) has delivered a total return of approximately 13% per year over the last 10 years. An initial investment of $1,000, with dividends reinvested, would have grown to about $3,400 by now. This performance reflects the fund's focus on high-quality dividend-paying companies with strong balance sheets and consistent dividend growth.

Navigating Market Downturns

Over that period, investors experienced several significant market declines, including the 2018 mini-bear market, the 2020 COVID-19 crash, and the 2022 bear market. Additionally, the market was heavily influenced by technology and AI stocks for extended periods. Despite these challenges, SCHD maintained its long-term growth trajectory, rewarding patient investors.

Fund Characteristics and Holdings

SCHD currently has assets under management of $112 billion and offers a dividend yield of 3.00%. The expense ratio is a low 0.06%. Its top holdings include Merck (MRK) at 4.83%, Amgen (AMGN) at 4.79%, and Abbott Laboratories (ABT) at 4.75%. The fund's selection criteria emphasize balance sheet quality, yield, and dividend growth history, resulting in a durable portfolio.

For investors tracking dividend payments, the dividend history of SCHD shows a consistent record of distributions. Those interested in projecting potential returns can use the dividend calculator to estimate future income.

What It Means for Income Investors

SCHD's long-term performance illustrates the potential of a disciplined approach to dividend investing. The fund's consistent returns and low costs make it a notable option for those seeking income and growth, though past performance does not guarantee future results.

Reporting based on: The Motley Fool. Figures verified against market data where available.