SCHD Is Down, But Its Dividend Is Up And These 2 ETFs Are Quietly Catching Up

When markets become moody, alternating between panic and euphoria, dividend stocks tend to offer a rare type of peace: predictability. For decades, they’ve provided a mix of income and stability that even the most flashy growth stocks can’t. And in that dividend-rich jungle, the Schwab U.S. Dividend Equity ETF (NYSE:SCHD) is an ETF kingpin.

Let's talk receipts. Since its launch in 2011, SCHD has delivered total returns of 203%. That's not just "good-for-an-ETF" good—that's "maybe-I-should-rethink-my-investment-strategy" good. Along the way, it has consistently raised its dividend, even as markets fluctuated through pandemics, inflation tantrums and meme-stock mania.

Also Read: The Dividend ETF That Just Woke Up And Why Investors Are Watching Closely

What's the secret sauce? SCHD holds a curated lineup of 100 high-quality, dividend-paying U.S. stocks. We're talking Coca-Cola (NYSE:KO), Chevron (NYSE:CVX) and Altria (NYSE:MO)—dividend legends, not one-hit wonders.

SCHD’s SEC 30-day yield is at 4.01%. That’s high.

For perspective, as of 2015, SCHD’s typical yield has stuck around 3%, and before 2022, it rarely broke through that. Yet here we sit, with a yield comparable to high-yield savings accounts—albeit many times more intriguing in the near future. Why? Because HYSAs don’t have to contend with compounding. SCHD’s does.

The Catch

Well, like everything in life (and finance), there is a trade-off. SCHD’s price has been hit in 2025, down close to 6% year-to-date and 9.5% in the last six months. Its increasing yield is partly due to declining prices. But long-term investors look at that as a signal to buy. Particularly those in pursuit of not only current yield but yield on cost (return/yield based on original cost and not current market price).

Projecting forward, SCHD could offer a yield on cost of over 14% in 10 years, assuming its current growth pace holds. The math makes a compelling case for SCHD as a long-term income generator.

Low Fees, High Value

At a mere 0.06% expense ratio, SCHD isn’t only generous with dividends, it’s also notoriously cheap on fees. That leaves more cash where it belongs: in your wallet.

3 Other Dividend ETFs Worth Watching

If SCHD is the class valedictorian of dividend ETFs, here are two other top-of-the-class performers that deserve honorary degrees:

Vanguard High Dividend Yield ETF (NYSE:VYM)

VYM targets U.S. businesses with higher-than-average dividend payouts and owns 589 holdings, so it’s more diversified than SCHD. Its current 30-day SEC yield is approximately 2.67%, and it has a bargain-basement expense ratio of only 0.06%.

iShares Select Dividend ETF (NASDAQ:DVY)

DVY goes the old-fashioned route, with a preference for utilities and industrials—your grandfather’s portfolio, but without the “old” part. It yields more than 3.7% and invests in stocks with a solid five-year history of paying dividends. With more than 100 holdings, it’s slightly more focused than VYM but offers a different sector bias that can complement a dividend portfolio. Expense ratio is 0.38%.

Bottom Line

While SCHD remains a standout stock for dividend growth, including VYM and DVY can add valuable diversity to your income strategy. Each provides something distinct in the way of dividend exposure—either more yield, defensive sector exposure, or longer-term consistency.

So if your portfolio needs a little less drama and a little more cash, consider making these dividend ETFs a permanent fixture at the table. Slow and steady wins the race—particularly when it pays you every quarter.

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