The Schwab U.S. Dividend Equity ETF (SCHD) closed Oct. 30 at $35.78, its 28th record close of 2026, with its price up about 31% this year while the S&P 500 rose about 11%. Including dividends, the fund has returned about 34%, on track for its best calendar year since it launched in 2011. Because the price has risen, the yield has fallen to around 2.9% from about 3.8% at the end of 2025. The article compares this with 2021, when the price later fell about 18% by Sept. 30, 2022 while dividends kept rising. Dividend growth has slowed from about 12% in 2024 to about 5% in 2025, and the author still considers the fund worth buying at this price but does not expect a year like 2026 to repeat.
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SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/03/2026 | 754.41 |
| Change that session | +0.31% |
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Related news
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The Schwab U.S. Dividend Equity ETF (SCHD) closed Thursday, Oct. 22, at $35.40, its highest close ever, surpassing the previous record of $35.21, and is up about 29% since the end of 2025. Over the same stretch, QQQ has fallen about 7% since Oct. 6, while SCHD has risen about 8%. The fund tracks the Dow Jones U.S. Dividend 100 Index, which requires companies to have paid dividends for at least 10 consecutive years, and as of mid-October none of its 102 holdings were 'Magnificent Seven' stocks. As of late September, consumer staples and healthcare made up about 39% of the fund, energy about 15% and tech about 12%. The author argues that over 2023, 2024 and 2025 combined, the fund returned about 22% with dividends versus about 135% for QQQ, so it may lag when big tech leads the market.
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The article compares holding a $945,000 income portfolio entirely in SCHD, entirely in JEPQ, or split evenly between them. Based on forward payout rates, moving everything from SCHD (3.10% forward yield) to JEPQ (11.57% forward distribution rate) would lift projected annual income from about $29,318 to about $109,306, roughly $79,988 more a year. JEPQ's high payout comes mostly from option premiums that rise with Nasdaq volatility, so monthly income varies and upside is capped, and its payouts are generally taxed as ordinary income. SCHD offers steadier quarterly dividends from established companies with a history of dividend growth. A split between both funds would generate about $69,312 a year, a combined yield of 7.33%.
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The Schwab U.S. Dividend Equity ETF (SCHD) is up 21.7% year to date versus 10.9% for the Vanguard High Dividend Yield ETF (VYM), and yields 3.2% compared with 2.4%. Its strong return is largely due to a 14.1% energy weighting, well above the S&P 500's 3.4%, as the energy sector gained 50.2% this year, although SCHD has cut its energy stake from 23.9% in late March. SCHD rebalances quarterly with a 40.6% portfolio turnover rate and now has heavy weightings in healthcare (20.7%) and consumer staples (20.4%). VYM, by contrast, keeps its largest holding, Broadcom at 6.9%, even though Broadcom's yield has fallen to 0.7%, and has more balanced sectors including 21.1% in financials and 13.7% in technology. The author argues VYM is the better long-term buy because its broader mix includes sectors that tend to grow faster over the long term.
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On a $300,000 investment, SCHD is estimated to pay $9,604 a year and SCHG about $1,220, a gap of $8,384 in annual cash. From October 13, 2021 to October 13, 2026, SCHG returned 98.84% on a dividend-adjusted basis versus 58.24% for SCHD, finishing $121,800 ahead. Over the year to October 13, 2026, however, SCHD returned 29.85% against 16.67% for SCHG, finishing $39,540 ahead. The article notes SCHG is concentrated in large tech names such as NVIDIA (11.01% of net assets as of May 31, 2026), while SCHD's largest holding is QUALCOMM at 6.74%. The author argues investors should first decide whether they need cash from the portfolio, then compare several time windows rather than relying on one.
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