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SCHD Draws Fresh Buying on 3.5% Yield and Dividend-Growth Track Record

The fund screens for high-yield companies with multi-year payout growth under the Dow Jones U.S. Dividend 100 Index.

Overview

  • An investing columnist disclosed adding more shares of the Schwab U.S. Dividend Equity ETF as part of a continuing buildout of their position.
  • The ETF’s trailing 12‑month dividend yield is reported at about 3.5%, roughly three times the S&P 500’s near 1.1% payout rate.
  • Current portfolio constituents have lifted dividends by more than 8% annually over the past five years, according to YCharts data cited.
  • Since launching in October 2011, the fund has produced a 12.9% average annual return, with more than 10% annualized over the past five- and 10-year periods.
  • The ETF is described as off to a strong start this year, and historical research from Ned Davis Research and Hartford Funds shows dividend growers have outperformed non-growers and non-payers over five decades.