Is SCHD Still the Best Dividend ETF You Can Buy for Passive Income? Here's What the Data Says.

Income seekers do not need to individually evaluate and pick dividend stocks. There are several solid exchange-traded funds (ETFs) that provide dividends for passive income. The Schwab U.S. Dividend Equity ETF (SCHD) is frequently the go-to choice for many income investors. Is the Schwab U.S. Dividend Equity ETF still the top dividend ETF for passive income?

The data provides insight. While Nvidia captured attention in 2009, a similar significant signal is emerging for a company much smaller than Nvidia. Let's delve into the data. SCHD has a higher dividend yield than its main rivals: 3.1% versus 2.2% for Vanguard's High Dividend Yield ETF and 1.9% for iShares Core Dividend Growth ETF.

It also outperforms Vanguard's Dividend Appreciation ETF with a yield of 1.5%. When looking at dividend growth, SCHD has risen by about 210% over the past five years, surpassing iShares Core Dividend Growth ETF and both Vanguard's top dividend ETFs in that timeframe. However, SCHD does not lead in cost, with an expense ratio of 0.06%, slightly higher than the 0.04% of the Vanguard ETFs.

The total return over 10 years shows SCHD slightly trailing at 244% compared to 254% for iShares Core Dividend Growth ETF. Though not the best in total return over 10 years, over the past year, SCHD has outperformed its peers in total return. Despite not being in Stock Advisor's top 10 picks, SCHD remains the premier dividend ETF for passive income investors due to its high yield, strong dividend growth, reasonable costs, and recent solid performance.