Dividend Growth

SCHD ETF: US Dividend Equity

Schwab's flagship dividend ETF holding 100 quality US companies with 10+ consecutive years of dividend payments. Growth and income combined.

SCHD Key Stats (2026)

Expense Ratio 0.06%
Dividend Yield 3.5%
AUM $60B+
Holdings 100

What is SCHD ETF?

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects companies based on financial strength, dividend history, and dividend growth potential.

To be included, companies must have paid dividends for at least 10 consecutive years and meet quality screens for profitability and financial health.

Top Holdings

Cisco, BlackRock, Home Depot, Chevron, Texas Instruments, Verizon, Pfizer, PepsiCo, Coca-Cola, AbbVie

SCHD vs VYM: Dividend ETF Showdown

Feature SCHD VYM
Expense Ratio 0.06% 0.06%
Dividend Yield ~3.5% ~3.0%
Holdings 100 500+
Selection Criteria Quality + 10yr dividend history Above-average yield
5-Year Return Higher (historically) Lower
Dividend Growth Strong focus Less focus

Bottom line: SCHD has historically outperformed VYM due to its quality focus and dividend growth criteria. VYM offers more diversification but lower returns.

How to Buy SCHD from New Zealand

1

Choose a Platform

SCHD is available on Hatch, Stake, Sharesies, and Interactive Brokers. All provide access to US markets.

2

Fund & Convert

Deposit NZD and convert to USD. Compare FX rates — this is often the biggest cost difference between platforms.

3

Buy SCHD

Search "SCHD" and place your order. Current price is around US$80 per share. Dividends paid quarterly.

Why Kiwi Investors Love SCHD

Growth + Income

SCHD delivers both capital appreciation and growing dividends. It's not just about yield — it's about total return.

Rock-Bottom Fees

At 0.06%, SCHD costs just $6 per year for every $10,000 invested. Incredible value for an actively-screened fund.

Quality Focus

Only financially strong companies with proven dividend track records make the cut. No dividend traps here.

Dividend Growth History

SCHD has grown its dividend every year since inception. Your income stream grows over time.

SCHD: Pros & Cons

Pros

  • Strong historical total returns
  • Growing dividend payments
  • Ultra-low 0.06% expense ratio
  • Quality screens avoid dividend traps

Cons

  • Only 100 holdings (less diversified than VTI)
  • Lower yield than JEPI (3.5% vs 7.5%)
  • Underweight in tech (no growth stocks like NVIDIA)
  • Quarterly dividends (not monthly)

Start Building Dividend Income

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