It's The Ugly Reality About SCHD Dividend History

September 20, 2025

Exploring the SCHD Dividend History: A Comprehensive Guide

Buying dividends is a preferred technique amongst income-seeking investors. A strong portfolio of dividend-paying stocks can supply a consistent and often growing stream of income. Among the popular dividend ETFs (Exchange Traded Funds) in this area is the Schwab U.S. Dividend Equity ETF, more frequently known by its ticker symbol, SCHD. This ETF has actually amassed considerable attention for its robust dividend history and attractive financial investment technique. In this blog post, we will explore the SCHD dividend history, including its efficiency, key characteristics, and why it may be an attractive option for dividend investors.

Understanding SCHD

SCHD was launched by Charles Schwab on October 20, 2011, with the aim of tracking the performance of the Dow Jones U.S. Dividend 100 Index. This index stresses premium U.S. stocks known for their regular and sustainable dividend payments. SCHD's selection criteria concentrate on companies that not only pay dividends however also show excellent basic quality through return on equity, balance sheet strength, and capital generation.

Key Features of SCHD:

Quality Focus: SCHD looks for to invest in U.S. stocks with an excellent dividend payment history and robust financial health.
Low Expense Ratio: One of its significant advantages is its low expenditure ratio, making it affordable for long-term financiers.
Diverse Holdings: The ETF is well-diversified across numerous sectors, minimizing risks connected with sector-specific downturns.

SCHD Dividend History Overview

Among the essential tourist attractions for financiers considering SCHD is its constant and trusted dividend payments. Below is a table showcasing SCHD's annual dividend history because its creation.

Year

Dividends Paid

Dividend Yield (%)

Growth Rate (%)

2011

₤ 0.51

3.15%

2012

₤ 1.23

3.47%

141.18%

2013

₤ 1.55

3.25%

26.00%

2014

₤ 1.79

3.14%

15.48%

2015

₤ 2.08

3.67%

16.21%

2016

₤ 2.36

3.66%

13.46%

2017

₤ 2.55

3.08%

8.06%

2018

₤ 2.87

3.34%

12.55%

2019

₤ 3.00

3.27%

4.52%

2020

₤ 3.23

4.22%

7.67%

2021

₤ 3.23

3.67%

2022

₤ 3.35

3.87%

3.71%

2023

₤ 3.56 (Estimated)

3.36% (Estimated)

6.25% (Estimated)

Table 1: SCHD Annual Dividend History

Observations from the Dividend History

Sustained Growth: SCHD has actually demonstrated a strong track record of dividend growth almost every year because its creation, which is a positive indication for dividend financiers.
Intensified Annual Growth Rate (CAGR): Over the previous years, SCHD's dividend has actually experienced an engaging CAGR of about 12%, showing the fund's method of picking premium dividend-paying stocks.
Yield Variability: While the yield varies from year to year, it has actually stayed within the 3-4% variety, making it competitive against lots of other dividend offerings in the market.

Benefits of Investing in SCHD

Income Generation: SCHD is an excellent choice for those aiming to produce income through dividends, making it suitable for senior citizens and conservative investors.
Reinvestment Opportunities: Investors can make the most of dividends through reinvestment programs, which can substantially increase total returns with time.
Diversification: With holdings throughout numerous sectors, SCHD supplies diversity that can help in reducing threat in a financial investment portfolio.

FAQs About SCHD Dividend History

Q1: What is the dividend frequency of SCHD?

A1: SCHD pays dividends on a quarterly basis. Collin Polovoy indicates that investors can anticipate routine payments throughout the year.

Q2: How does SCHD compare to other dividend ETFs?

A2: Compared to other dividend-focused ETFs, SCHD usually has a lower cost ratio and has actually revealed competitive dividend growth rates. Its focus on quality business can supply a procedure of security and stability in unstable market conditions.

Q3: Is the dividend from SCHD trusted?

A3: While no investment comes without risk, SCHD's history reveals a reliable distribution of dividends, suggesting a strong probability of ongoing payments in the future, specifically given the ETF's technique of selecting companies with strong fundamentals.

Q4: Can I reinvest my SCHD dividends?

A4: Yes, investors can select to reinvest their dividends through a Dividend Reinvestment Plan (DRIP), which automatically uses dividend revenues to acquire extra shares of SCHD.

SCHD's compelling dividend history positions it as a robust choice for financiers concentrated on income generation through premium, dividend-paying stocks. With its low expense ratio, constant growth, and diversified portfolio, SCHD is certainly a noteworthy contender in the realm of dividend ETFs. Just like any financial investment, it's vital for prospective investors to carry out extensive research study and consider their monetary goals before diving into this ETF.

Purchasing SCHD can be a clever method to develop a steady income stream while gaining from the robust efficiency of selected U.S. business understood for their trustworthy dividend payments. Whether for retirement planning or structure wealth, checking out SCHD and its dividend history is a worthwhile venture for any severe financier.