Overview
- Recent coverage highlights that SCHD has raised its annual dividend every year since its 2011 launch, giving it a 14‑year streak that signals steady payout growth.
- The fund yields about 3.3% based on the last 12 months of distributions while charging a low 0.06% expense ratio, letting investors keep more of their income.
- SCHD tracks the Dow Jones U.S. Dividend 100 Index and uses screens for current yield, five‑year dividend growth, cash‑flow strength and return on equity to favor financially resilient payers.
- Historically the fund has delivered strong total returns alongside income, which coverage credits to its mix of dividend growth and quality stock selection.
- Advisers recommend using SCHD as a core income sleeve and pairing it with higher‑yield assets like covered‑call ETFs or REITs to raise cash flow, while noting that those add payout volatility, principal risk and different tax outcomes.