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SCHD Leads U.S. Dividend ETFs in 2026 as Early Buyers Earn 12% Yields on Cost

A low-cost, rules-based focus on long-running dividend growers is drawing fresh interest in a defensive market.

Overview

  • SCHD, highlighted in Tuesday coverage, is cited as the top-performing U.S. dividend ETF this year as investors favor steady cash payers.
  • Early investors now collect about a 12.4% to 12.5% yield on their original cost after the fund’s annual payout rose from $0.224 in 2011 to roughly $1.055.
  • The ETF’s current income profile sits in the high‑3% range by SEC yield, and it charges a 0.06% fee while managing about $87.5 billion.
  • The fund tracks the Dow Jones U.S. Dividend 100 Index, which requires at least 10 years of dividends and screens for cash flow, return on equity, and dividend growth, with a March reconstitution that can shift sector weights.
  • Recent holdings feature large, durable payers such as Texas Instruments, UnitedHealth Group, Chevron, PepsiCo, and Coca‑Cola, and long-run results since 2011 total about 490% with dividends reinvested.