Looking for the real story behind SCHD’s dividend yield and performance?
Here’s the bottom line: SCHD delivers a steady, attractive yield – currently around 4.0% – and has a track record that’s more tortoise than hare. If you want to know whether this fund can keep your income flowing and your nerves steady, you’re in the right place. For a full overview of how SCHD works and why it matters, see the SCHD ETF main guide.
What Is Dividend Yield? (And Why Should You Care?)
Dividend yield isn’t just a fancy number on a factsheet – it’s the percentage of your investment you get back in cold, hard cash each year.
But is yield the only thing that matters?
Not quite. A high yield can look tempting, but if it comes from shaky companies, you might be riding a bucking bronco instead of a steady workhorse.
Think of a steady yield as a metronome for your income: predictable, reliable, and – if you’re a long-term investor – downright comforting.
SCHD Yield – How Does It Stack Up?
So, how does SCHD’s yield compare to the competition? Let’s put the numbers side by side:
| Fund | Dividend Yield (%) | 3-Year Total Return (%) |
| SCHD | 4.0 | 18.5 |
| VIG | 2.1 | 21.2 |
| SPY | 1.4 | 27.5 |
| SCHY | 4.4 | 7.8 |
SCHD’s yield is consistently higher than most broad-market ETFs and even many dividend peers.
The trade-off?
Sometimes, a higher yield means slower growth – but for those who value income, SCHD’s approach is tough to beat.
Pros of SCHD’s yield approach:
- Steady, above-average payouts
- Focus on quality companies
- Less yield “chasing” than high-risk funds
Cons:
- Can lag growth funds in bull markets
- Yield may dip if holdings are reconstituted
Imagine you’d held SCHD through the wild swings of 2022–2025. While the S&P 500 soared on the backs of tech giants, SCHD kept chugging along, delivering dividends quarter after quarter – even when the market got rocky. If you’re curious how this resilience relates to risks for income investors, check out the risks for income investors section.
Performance in Bull & Bear Markets
Does SCHD keep up when the market sprints – or only when it strolls? In bull markets, SCHD often lags the high-flyers, especially when tech stocks lead the charge. But when the bears come out, SCHD’s focus on stable, dividend-paying companies helps cushion the blow.
Just look at 2025: SCHD is down about 7% year-to-date, while the S&P 500 is up – thanks to a tech rally. Sometimes, the tortoise really does beat the hare, especially when the race is long and the track gets rough.
A quick glance at recent performance:
- 2023: Up 3.2%
- 2024: Up 9.8%
- 2025 (YTD): Down 7%
SCHD’s track record isn’t about fireworks – it’s about consistency.
Comparing SCHD to Its Peers
How does SCHD measure up against other dividend funds? VIG offers lower yield but slightly better total returns. SCHY brings international flavor and a higher yield, but with more volatility. SPY is the growth king, but don’t expect much in the way of dividends. For a full side-by-side, see the SCHD vs. other dividend ETFs comparison.
In short: SCHD is the fund for investors who want a reliable income stream, even if it means giving up some growth during bull runs. Boring is beautiful when it comes to dividends.
SCHD’s dividend yield and performance are all about steady, predictable income – not chasing the latest market fad. For investors who want to sleep well at night, SCHD’s metronome-like payouts and resilience in tough markets make it a standout choice. Sometimes, slow and steady really does win the race.