Is Schd Still the Leading Dividend ETF in 2025? An In-Depth Analysis of Results and Asset Composition
ETF Spotlight: The Resilient Schwab U.S. Dividend Equity ETF in the Volatile 2025 Market
The Schwab U.S. Dividend Equity ETF (SCHD) continues to be a preferred choice for income-oriented investors, despite facing new challenges in 2025. With a trailing twelve-month yield of 3.49% and an SEC yield of 3.71% as of March 2025, SCHD's standing hinges on its ability to maintain a balance between dividend growth, sector resilience, and cost efficiency.
SCHD's cumulative growth of a $10,000 investment reached $29,169 by February 2025, surpassing its benchmark (DJ US Dividend 100 TR USD) and the Large Value category. Key performance indicators include a one-year return of +14.39% (compared to +14.37% for its index) and a five-year annualized return of +14.65%. Its dividend growth has been remarkable, with payouts increasing by 179% from 2017 to 2024, fueled by a focus on companies with more than ten years of consecutive dividend growth.
Despite a beta of 1.00, signifying market-matching volatility, SCHD's defensive sector composition (financials, healthcare, consumer staples) positions it to withstand downturns better than growth-focused peers like FDVV.
SCHD's portfolio comprises 103 holdings, primarily large-cap dividend growers. Top positions include Lockheed Martin (4.26%), Amgen (4.20%), AbbVie (4.09%), and Coca-Cola (3.96%). Sector allocations skew toward defensive industries, contrasting sharply with tech-heavy ETFs like FDVV, which prioritize growth over stability. SCHD's 0.06% expense ratio, among the lowest in its class, enhances its appeal.
SCHD's 3.57% yield outpaces many peers, including FDVV (2.91%) and SPYD (4.16%). However, its true strength lies in dividend growth, boasting an 11.59% compound annual growth rate (CAGR) in payouts from 2017 to 2024, significantly outpacing FDVV's 2.87%. Its predictable distributions, with minimal quarterly fluctuations compared to FDVV's volatile payouts, make it appealing for retirees or income-focused investors. For those prioritizing stability over high payouts from riskier ETFs like KBWY (8.87%) or XSHD (7.23%), SCHD's yield proves favorable.
In the competitive landscape of 2025, alternatives like FDVV or sector-specific ETFs may cater to investors with higher risk tolerance or niche strategies. For a blend of yield, growth, and stability, SCHD remains an outstanding choice for those seeking long-term income compounding, prioritizing predictability over speculative upside.
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- Despite the volatile market conditions in 2025, the Schwab U.S. Dividend Equity ETF (SCHD) continues to be an attractive option for those investing in personal-finance, given its resilient performance.
- With distribution in the African market, SCHD's logistics network may play a crucial role in its ability to capitalize on investment opportunities in emerging economies.
- As the rail sector continues to evolve, SCHD's focus on large-cap dividend growers could provide a stable platform for investors seeking exposure to this dynamic market.
- In the realm of finance, SCHD's emphasis on dividend growth, balanced by sector resilience and cost efficiency, makes it an appealing choice for income-oriented investors in the distributing market.
