Schwab's Dividend ETF Has Gained 25% This Year. Is It Still Worth Buying?
Its payout has hardly risen this year, but its price has surged. What does that leave for the next five years?
The Schwab U.S. Dividend Equity ETF (SCHD) has seen a 25% gain this year, outperforming the S&P 500 by about 10 percentage points. Currently trading at around $34, the fund is close to its August 24 record of $35.21. Despite its focus on dividend-paying stocks, SCHD's 25% gain this year is largely attributed to its higher share price rather than increased dividends.
An investment of $10,000 in SCHD now, with dividends reinvested, could be worth approximately $14,000 in five years, representing a 7% annual return. However, this projection relies on assumptions about the fund's dividend growth and valuation. The dividend payout has remained relatively stable at around $0.78 per share this year, while the share price has surged from $27.43 in 2025 to $34.
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