Complete breakdown of the SCHD ETF — Schwab US Dividend Equity holdings, dividend yield history, performance, and how it compares to VYM, DVY, and HDV.
The SCHD ETF (Schwab U.S. Dividend Equity ETF) is one of the most popular dividend-focused exchange-traded funds, tracking the Dow Jones U.S. Dividend 100 Index. The Schwab Dividend fund uses a quality screen methodology to select approximately 100 high-quality U.S. dividend-paying companies with strong fundamentals and a track record of consistent dividend payments.
| Metric | SCHD | VYM | DVY | HDV |
|---|---|---|---|---|
| Full Name | Schwab US Dividend Equity | Vanguard High Dividend Yield | iShares Select Dividend | iShares Core High Dividend |
| Expense Ratio | 0.06% | 0.06% | 0.38% | 0.08% |
| Dividend Yield | ~3.4% | ~2.8% | ~3.3% | ~3.5% |
| AUM | $65B | $58B | $20B | $11B |
| 5yr Return (Annl.) | ~12.5% | ~10.2% | ~9.8% | ~8.1% |
| Holdings Count | ~104 | ~400+ | ~100 | ~75 |
| Strategy | Quality + Dividend Screen | Broad High Yield | Yield-Weighted Select | Dividend Health Screen |
| Inception | 2011 | 2006 | 2003 | 2011 |
| # | Ticker | Company | Sector | Weight |
|---|---|---|---|---|
| 1 | ABBV | AbbVie Inc. | Healthcare | 4.8% |
| 2 | PEP | PepsiCo Inc. | Consumer Staples | 4.5% |
| 3 | CSCO | Cisco Systems | Technology | 4.4% |
| 4 | KO | Coca-Cola Co. | Consumer Staples | 4.3% |
| 5 | HD | Home Depot Inc. | Consumer Discretionary | 4.3% |
| 6 | AMGN | Amgen Inc. | Healthcare | 4.2% |
| 7 | TXN | Texas Instruments | Technology | 4.1% |
| 8 | CVX | Chevron Corp. | Energy | 4.1% |
| 9 | BLK | BlackRock Inc. | Financials | 4.0% |
| 10 | UPS | United Parcel Service | Industrials | 3.9% |
| 11 | PFE | Pfizer Inc. | Healthcare | 3.8% |
| 12 | VZ | Verizon Communications | Communication | 3.7% |
| 13 | ITW | Illinois Tool Works | Industrials | 3.5% |
| 14 | EOG | EOG Resources | Energy | 3.4% |
| 15 | LMT | Lockheed Martin | Industrials | 3.3% |
The SCHD portfolio is reconstituted annually in March. Top 15 holdings represent approximately 60% of total assets. Individual SCHD holdings are generally capped around 4-5% weight.
Annual dividend per share (2012–2025). SCHD has grown its dividend at an approximately 11% CAGR — far outpacing inflation.
The Dow Jones U.S. Dividend 100 Index (SCHD's benchmark) applies a rigorous quality screen to select approximately 100 stocks from a universe of U.S. dividend-paying companies. Here is how the Schwab Dividend selection process works:
Companies must have paid dividends for at least 10 consecutive years, ensuring a proven commitment to returning capital to shareholders.
High FCF relative to total debt signals a company can sustain and grow dividends without relying on leverage. Stronger balance sheets reduce risk.
Companies are ranked by ROE to ensure management is effectively deploying shareholder capital to generate profits.
The index selects the top 100 stocks by composite score and weights them by modified market cap, with a tilt toward higher-yielding names.
Unlike pure high-yield ETFs, SCHD's quality screen filters for financially strong companies. This is why SCHD portfolio companies have higher ROE and lower payout ratios than peers like DVY or HDV.
SCHD's ~11% CAGR dividend growth rate means your yield on cost roughly doubles every 6-7 years. A 3.4% yield today becomes ~6% yield on cost in 6 years — far better than bonds.
While VYM offers more diversification with 400+ holdings, SCHD's concentrated 100-stock portfolio with quality screens has consistently outperformed. Quality concentration can beat broad diversification.
SCHD holds mostly qualified dividend-paying stocks, meaning distributions are typically taxed at the lower qualified dividend rate (0-20%) rather than ordinary income rates — a real edge in taxable accounts.
SCHD reconstitutes every March, dropping companies that no longer meet quality criteria and adding new ones. This built-in discipline forces "buy quality, sell deterioration" — a systematic value approach.