Overview
- Yahoo Finance highlights that SCHD yields about 3.3%, roughly triple the S&P 500’s 1.1% payout, with a 0.06% expense ratio.
- The fund follows a rules-based screen that requires at least 10 straight years of dividend hikes and scores stocks on cash flow to debt, return on equity, yield, and five-year dividend growth.
- The top 100 scorers are included using market-cap weighting, and the portfolio resets once a year to keep the focus on financially strong dividend growers.
- Coverage positions SCHD as an income supplement rather than a pure growth bet, noting its total return can trail the S&P 500 in tech-led rallies.
- Diversification spans about 100 holdings and tilts toward steadier areas such as energy, consumer staples, and healthcare, which can smooth payouts but limit upside in hot markets.