Schwab's Dividend ETF Has Nearly Quadrupled Its Payout Since 2012
A buyer from late 2011 now gets around 12% a year on what they paid. Can a buyer at today's price expect the same?
Overview
Someone who bought the Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) at the end of 2011 paid around $8.73 a share (adjusted for the fund's 3-for-1 stock split in October 2024). In 2025, the fund paid around $1.05 a share in distributions. So the investor now earns around 12% a year in cash on the original investment, without selling a single share.
A buyer today sees a very different number. With shares at around $33 as of this writing, the ETF's latest four quarterly payments work out to a yield of about 3.2%.
Details
The gap comes from how much the payout has climbed. In 2012, its first full year, SCHD paid $0.27 a share. Its annual total has risen every year since, and by 2025 it had nearly quadrupled.
Source
Originally published at www.fool.com.