SCHD: Schwab US Dividend Equity ETF

SCHD is the Schwab US Dividend Equity ETF, a quality-screened dividend growth fund. It holds approximately 100 US stocks that meet criteria for dividend history (10+ years), cash flow coverage, return on equity, and forward yield. Yields approximately 3.5% with mid-single-digit dividend growth, at an industry-low 0.06% expense ratio.

SCHD, listed on NYSE Arca. The official name is Schwab US Dividend Equity ETF, issued by Charles Schwab. It tracks the Dow Jones US Dividend 100 Index, a quality-screened dividend selection methodology.

Approximately 100 quality dividend payers. Top 10 typically include Texas Instruments, Broadcom, Verizon, Pfizer, Bristol-Myers Squibb, Altria, Amgen, Cisco, Home Depot, AbbVie. Weights are roughly equal (4-5% each in the top tier) because the methodology limits single-stock concentration to support diversification.

Different strategies. SCHD screens for quality (10-year dividend history, low debt-to-cash-flow, ROE, indicated yield) and yields ~3.5% with mid-single-digit dividend growth. VYM simply selects above-median-yield US stocks with no quality filter; yields ~2.7% with broader diversification (~540 holdings vs SCHD's 100). SCHD has been the dividend-growth specialist; VYM is the diversified-yield specialist. Walnut covers both as distinct theme expressions.

0.06% per year. On a $10,000 investment, that's $6/year in fees. Among the cheapest dividend ETFs available. SCHD's combination of quality screening at near-broad-market cost is the central reason it has become one of the most-held dividend ETFs.

Approximately 3.5% as of early 2026, paid quarterly. Among the higher yields available from quality-screened dividend ETFs. The yield is supported by the methodology selecting stocks with above-average yields plus dividend coverage, rather than reaching for the highest available yields (which often signal weakening fundamentals).

SCHD trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, Vanguard, or any other. Schwab itself offers SCHD commission-free as part of its own ETF lineup. Fractional shares supported at most modern brokers.

Approximately $65 billion as of early 2026. SCHD has grown substantially since 2020 as dividend-tilted investing has gained passive flow share. Schwab's distribution and the fund's quality screening have made SCHD the dividend ETF of choice for many fee-conscious income investors.

SCHD captures quality dividend growth at near-zero cost, which is the central tenet of dividend-tilted investing. For long-term income-and-growth balance, it's been one of the most-recommended ETFs. Whether it fits your portfolio depends on your time horizon, your tax situation (dividends are taxable in non-qualified accounts), and what else you own. Walnut isn't an investment adviser.

October 2011. SCHD has been one of Schwab's flagship ETFs since launch and has grown to become the largest dividend-focused ETF by AUM. The 10+ year track record now matches the dividend history requirement of its underlying index, which is a notable longevity milestone.

Microsoft yes (consistently), Apple sometimes. Both meet the dividend history requirement. Their inclusion depends on the methodology's annual rebalance and how they screen on yield versus the universe. Apple's relatively low yield has historically kept it out; Microsoft's stronger payout has been consistent. Other Mag 7 names (Tesla, Amazon, Alphabet, Meta) don't qualify because they don't pay sufficient dividends.

Yes, at brokers that support fractional ETF purchases: Robinhood, Fidelity, Schwab, Public, M1, and several others. Fractional purchases are useful for SCHD because the regular dividend distributions can be reinvested as fractional shares automatically.

Yes. SCHD pays distributions on a quarterly schedule, typically in March, June, September, and December. The actual dollar amount per share varies with the underlying constituents' dividend declarations. Most brokers support automatic dividend reinvestment (DRIP).

Many retirement-focused investors hold SCHD because of the combination of yield (~3.5%) and dividend growth (mid-single-digit annual rate). The income generated supports drawdown phases; the growth helps preserve real purchasing power over multi-decade retirements. Walnut isn't an investment adviser; appropriate position sizing depends on overall portfolio income needs and risk tolerance.