Schwab's Dividend ETF Has Gained 25% This Year. Is It Still Worth Buying?
Key PointsThe fund's first three payments of 2026 total around $0.78 a share, only about 1% more than the same three payments in 2025.
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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