Schd Dividend Growth Rate: A Detailed Look for Value-Focused Investors
The SCHD dividend growth rate has averaged roughly 12% per year since the fund launched in 2011, a track record that puts it ahead of most dividend-focused ETFs available to U.S. investors. The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which screens for quality and payout consistency before anything else. That filter is why the schd dividend growth rate holds up across different market cycles, while many higher-yielding alternatives cut or freeze their distributions when earnings turn. This post pulls the full history, explains the methodology behind it, and shows you how to use it when building a dividend-compounding portfolio.
Key Takeaways
- SCHD's dividend has grown from $0.417 per share in 2012 to approximately $2.66 per share in 2025, a compound annual growth rate near 12%.
- The fund screens for 10-year dividend streaks, cash flow coverage, return on equity, and dividend yield relative to peers. All four filters together produce a quality tilt that supports sustained payout growth.
- SCHD's trailing yield sits near 3.5% as of early 2026, with a 30-day SEC yield slightly lower due to fund expense netting.
- The payout ratio across SCHD's top holdings averages around 48%, leaving room for further dividend increases without straining free cash flow.
- SCHD held 104 positions as of late 2025, with financials, consumer staples, healthcare, and industrials carrying the heaviest weights.
- Run each SCHD holding through ValueMarkers' screener to check whether the individual stock quality still justifies a position at current prices.
What Is SCHD and Why Does the Dividend Growth Rate Matter
SCHD is a passively managed ETF from Charles Schwab. The expense ratio is 0.06%, which means nearly all of the fund's income flows through to shareholders rather than being consumed by fees. That low-cost structure compounds meaningfully over a decade.
The dividend growth rate matters because yield-on-cost compounds faster than the headline yield suggests. If you bought SCHD in 2015 at roughly $34 per share with a 2.8% yield, your yield-on-cost today sits near 7.8%, based on current distributions paid against that original cost basis. That is what dividend growth does to a patient investor's return profile.
The Full SCHD Dividend History
The table below shows SCHD's annual dividend per share since inception and the year-over-year growth rate. All figures are calendar-year totals of quarterly distributions.
| Year | Annual Dividend (USD) | YoY Growth |
|---|---|---|
| 2012 | $0.417 | , |
| 2013 | $0.584 | +40.0% |
| 2014 | $0.694 | +18.8% |
| 2015 | $0.774 | +11.5% |
| 2016 | $0.908 | +17.3% |
| 2017 | $1.000 | +10.1% |
| 2018 | $1.146 | +14.6% |
| 2019 | $1.255 | +9.5% |
| 2020 | $1.272 | +1.4% |
| 2021 | $1.636 | +28.6% |
| 2022 | $2.025 | +23.8% |
| 2023 | $2.612 | +29.0% |
| 2024 | $2.524 | -3.4% |
| 2025 | $2.660 | +5.4% |
Two things stand out. The 2020 growth was nearly flat, at 1.4%, because COVID-19 compressed earnings across industrials and financials, both of which carry heavy weight in the index. The 2024 dip of 3.4% reflected portfolio reconstitution that rotated out of several higher-paying names at year-end. Both events are noise relative to the 12% CAGR across the full period.
How the Dow Jones U.S. Dividend 100 Index Selects Holdings
The index methodology is the clearest explanation for why the schd dividend growth rate is more consistent than competing funds. Eligibility requires all of the following:
- At least 10 consecutive years of dividend payments, with no cuts.
- A minimum free cash flow to debt ratio, ensuring the payout is covered by actual cash generation.
- Return on equity, dividend yield relative to the broader index, and five-year dividend growth rate must all rank in the top 100 among qualifying names.
The result is a portfolio tilted toward companies that are profitable enough, cash-generative enough, and committed enough to raise dividends year after year. You are not screening for the highest-yielding names. You are screening for names where the dividend is structurally supported.
SCHD's Top Holdings and Their Individual Dividend Metrics
The fund is well-diversified across 100+ names, but the top 10 positions carry roughly 40% of weight. As of early 2026, the largest holdings include Broadcom (AVGO), Texas Instruments (TXN), Verizon (VZ), Pfizer (PFE), Lockheed Martin (LMT), Chevron (CVX), Coca-Cola (KO), and Home Depot (HD).
Coca-Cola (KO) illustrates the archetype well. KO carries a dividend yield near 3.0%, has grown its payout for 62 consecutive years, and holds a payout ratio around 71% on earnings, but its free cash flow coverage is tighter than the earnings figure suggests. KO passes SCHD's screens because its yield, cash flow, and ROE all rank favorably within the universe.
The sector weights tell you where the fund concentrates its quality search:
| Sector | Approximate Weight |
|---|---|
| Financials | 18.4% |
| Consumer Staples | 14.1% |
| Healthcare | 13.7% |
| Industrials | 12.9% |
| Energy | 9.8% |
| Information Technology | 9.2% |
| Communication Services | 8.6% |
| Materials | 5.1% |
| Utilities | 4.8% |
| Consumer Discretionary | 3.4% |
SCHD Dividend Growth Rate vs. Competing ETFs
SCHD is not the only quality-dividend fund, but its 12% CAGR since inception sits at the top of the category. Here is how it compares to the most commonly discussed alternatives:
| ETF | Inception | Div CAGR (Since Inception) | Trailing Yield | Expense Ratio |
|---|---|---|---|---|
| SCHD | 2011 | ~12.0% | ~3.5% | 0.06% |
| VIG (Vanguard Dividend Appreciation) | 2006 | ~8.1% | ~1.8% | 0.06% |
| DVY (iShares Select Dividend) | 2003 | ~4.2% | ~4.6% | 0.38% |
| DGRO (iShares Core Dividend Growth) | 2014 | ~9.4% | ~2.4% | 0.08% |
| NOBL (ProShares S&P 500 Dividend Aristocrats) | 2013 | ~6.8% | ~2.1% | 0.35% |
DVY runs a higher current yield but its dividend growth CAGR is far lower, because it selects for yield without the same quality filters. DVY cut its distribution in 2020. SCHD did not. That difference shows up clearly in the CAGR comparison.
How to Work Out Dividend Yield on Your Actual SCHD Position
Dividend yield as reported by brokers and data providers refers to the trailing twelve-month distributions divided by the current share price. That number changes daily as the price moves. Your personal yield-on-cost is more informative for a long-held position.
To calculate yield-on-cost: divide the current annual dividend per share by your average cost basis per share, then multiply by 100.
If your average cost basis is $68 per share and SCHD pays $2.66 per share annually, your yield-on-cost is 2.66 / 68 = 3.9%. If you bought at $45 in 2018, your yield-on-cost is 2.66 / 45 = 5.9%. Same fund, same distribution, two very different income returns depending on when you entered.
What the Payout Ratio Tells You About Dividend Sustainability
The aggregate payout ratio across SCHD's portfolio averages near 48% on an earnings basis and somewhat lower on a free cash flow basis. Both figures leave meaningful headroom for continued dividend growth without pressuring balance sheets.
A payout ratio above 80% is the first warning sign. It means the company is returning most of its earnings to shareholders and has little room to raise the dividend if earnings slip. SCHD's index screens filter out names approaching that threshold, which is a primary reason the fund avoided dividend cuts during the 2020 earnings stress.
The payout ratio matters less in isolation than the combination of payout ratio plus free cash flow coverage plus earnings growth trajectory. A 60% payout ratio at a company growing earnings 10% per year is far safer than a 45% payout ratio at a company with flat earnings and rising debt.
Using the SCHD Dividend Growth Rate in a Portfolio Context
SCHD is not a total-return vehicle in the same sense as an S&P 500 index fund. Its ten-year total return trails the S&P 500 by roughly 2-3 percentage points annually, primarily because it underweights high-growth technology names. The tradeoff is a much higher current income yield and a smoother drawdown profile during market stress.
For investors building a dividend income stream, SCHD works as a core holding rather than a full allocation. Pairing it with individual stocks that carry higher quality scores, checked through our screener, lets you add names where the VMCI Score's Quality pillar (30% of total score) and Value pillar (35%) both screen favorably, something SCHD's passive methodology cannot optimize for at the individual stock level.
The fund is most useful as a low-cost base, with individual high-conviction dividend growers layered on top where valuations are attractive.
Further reading: SEC EDGAR · FRED Economic Data
Why schd dividend history Matters
This section anchors the discussion on schd dividend history. The detailed treatment, formula, and worked examples appear in the body of this article above. The points below summarize the most important takeaways for value investors who want to apply schd dividend history in real portfolio decisions. ValueMarkers exposes the underlying data on every covered ticker via the screener and stock profile pages, so the concepts in this article translate directly into actionable filters.
Key inputs for schd dividend history
See the main discussion of schd dividend history in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using schd dividend history alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Sector benchmarks for schd dividend history
See the main discussion of schd dividend history in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using schd dividend history alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Related ValueMarkers Resources
- Dividend Yield — Dividend Yield is the metric used to how cheaply a stock trades relative to its fundamentals
- Payout Ratio — Payout Ratio is the metric used to the financial stress or solvency profile of the business
- Revenue Growth 1Y — Revenue Growth 1Y measures the rate at which the business is expanding
- Dividend Aristocrats Etf — related ValueMarkers analysis
- Dividend Aristocrats Stock List — related ValueMarkers analysis
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Frequently Asked Questions
how to work out dividend yield
Dividend yield is the annual dividend per share divided by the current share price, expressed as a percentage. If SCHD pays $2.66 per share annually and the current price is $76, the yield is 2.66 / 76 = 3.5%. Brokers and data providers calculate this using the trailing twelve months of distributions, so the number reflects what was actually paid rather than a projection.
canara bank stock rate
Canara Bank is an Indian public sector bank listed on the NSE and BSE. Its share price fluctuates daily based on Indian market trading hours. For the current rate, check NSE India, BSE India, or any broker with access to Indian equities. Canara Bank is not a constituent of SCHD or any U.S.-listed dividend ETF.
what is a dividend stock
A dividend stock is a share in a company that returns a portion of its earnings to shareholders as regular cash payments. These payments, called dividends, are typically declared quarterly and deposited directly into your brokerage account. Dividend stocks tend to be profitable, mature businesses with stable cash flows, like Coca-Cola (KO) with a 3.0% yield and 62 consecutive years of dividend increases.
what is cagr growth rate
CAGR stands for compound annual growth rate. It measures how much something grows per year on average over a multi-year period, accounting for the compounding effect. SCHD's dividend CAGR of roughly 12% since 2011 means the annual dividend grew, on average, 12% per year from $0.417 in 2012 to approximately $2.66 in 2025, calculated as (2.66 / 0.417) raised to the power of 1/13, minus 1.
how to calculate dividend payout
The dividend payout ratio is calculated by dividing dividends per share by earnings per share, then multiplying by 100. If a company earns $4.00 per share and pays $1.80 in dividends, the payout ratio is 45%. Alternatively, divide total dividends paid by net income for the same period. A payout ratio below 60% is generally considered sustainable for most industries, though capital-light businesses like consumer staples can sustain higher ratios.
how to pick a dividend stock
Start with companies that have paid and grown dividends for at least ten consecutive years with no cuts. Then check that the payout ratio is below 70% on an earnings basis and that free cash flow comfortably covers the dividend. Next, verify the business has a positive earnings growth trajectory so future raises are funded by genuine profit expansion. Run each candidate through the ValueMarkers screener to compare yield, payout ratio, ROIC, and revenue growth across the full 120-indicator set before committing capital.
Screen SCHD's top holdings and your own watchlist through the ValueMarkers screener to see which names carry the strongest combination of yield, payout coverage, and earnings growth right now.
Written by Javier Sanz, Founder of ValueMarkers. Last updated April 2026.
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Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.
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