SCHD Is Up Nearly 30% and Its Yield Is Back Near 3% | Did Dividend Investors Miss the Easy Money?

The SCHD ETF has surged nearly 30%, now yielding around 3.1%, leading some to question whether dividend investors have missed out on easy money. At $35, the entry point is less appealing compared to the $27 paid by long-term holders in 2022 and 2023. The 10-year Treasury is outpacing SCHD's income with a 4.7% yield and zero equity risk, making a mixed allocation of SCHD and Treasuries a smarter move for fresh capital.

To generate $3,000 monthly from SCHD today, investors need approximately $1.15 million, a significantly higher capital requirement compared to two years ago. After returning 29% year-to-date, SCHD's price is near $35, just below its 52-week high. Despite this attractive performance, SCHD's yield has compressed to a level close to the lowest in years.

The fund screens for quality companies with consistent dividends, strong cash flow, and reasonable yields, such as Qualcomm, Texas Instruments, UnitedHealth, Coca-Cola, and Merck. While SCHD offers dividend growth, its 3.1% yield is below the risk-free rate of the 10-year Treasury at 4.7%. For investors seeking more current income, pairing SCHD with short-term Treasuries could be a viable strategy.