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Investors Keep Buying SCHD Despite Double-Digit 2026 Rally

Buyers cite a richer yield at lower valuations than the S&P 500.

Overview

  • A Motley Fool contributor says they bought more shares even after a double-digit gain this year.
  • The Schwab U.S. Dividend Equity ETF is up more than 10% in 2026 while the S&P 500 is down almost 5%.
  • The fund’s trailing 12-month yield is 3.3%, compared with roughly 1.2% for the S&P 500.
  • Portfolio valuations average about 20 times earnings and 10.7 times cash flow, below the S&P 500’s 22.3 and 14.5 multiples.
  • SCHD tracks the Dow Jones U.S. Dividend 100 Index, which screens for yield, five-year dividend growth, and financial strength.