SCHD Just Made Big Changes. Is This Dividend Growth ETF Still a Buy?

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Rich Duprey

Wed, March 25, 2026 astatine 8:35 AM CDT 5 min read

Schwab U.S. Dividend Equity ETF (SCHD) removed 22 holdings including Valero Energy (VLO), up 80%, Halliburton (HAL), up 46.5%, and Ovintiv (OVV), up 32%, portion adding UnitedHealth Group (UNH), down 48%, Ares Management (ARES), down 30%, and Accenture (ACN), down 35%, on with Abbott Laboratories (ABT), Procter & Gamble (PG), and Qualcomm (QCOM). The reconstitution trimmed vigor vulnerability by astir 8 percent points portion boosting wellness attraction and technology, with incoming stocks averaging 63% five-year dividend-growth rates versus 37% for removed holdings.
SCHD’s rules-based scale methodology automatically sells winners whose rising prices compress dividend yields and replaces them with higher-quality dividend growers trading astatine much charismatic valuations, efficaciously executing a mechanical “buy low, merchantability high” strategy that has driven the fund’s 478% cumulative instrumentality since 2011.
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The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) stands arsenic 1 of the astir fashionable dividend-growth vehicles connected the market. Since its inception connected October 20, 2011, the money has delivered a cumulative full instrumentality of 478%, equating to a 13.3% annualized average. With a existent output of 3.3%, SCHD has turned a hypothetical $10,000 concern astatine motorboat into astir $58,000 today.

That way grounds has made it a cornerstone holding for income investors seeking dependable payouts and superior appreciation. Yet aft its yearly scale reconstitution took effect connected March 23, immoderate shareholders whitethorn beryllium scratching their heads. SCHD made large adjustments to its portfolio, swapping retired respective high-flying names for others that person lagged badly. The moves rise an evident question: Is this dividend-growth ETF inactive a buy?

SCHD tracks the Dow Jones U.S. Dividend 100 Index, a transparent, rules-driven benchmark that selects and weights 100 U.S. companies based connected strict quantitative criteria. The scale starts with dividend-paying stocks that person accrued payouts for astatine slightest 10 consecutive years. It past applies cardinal screens measuring cash-flow generation, instrumentality connected equity, and five-year dividend-growth rates per share. Qualifying companies are ranked and weighted chiefly by their indicated dividend yield, taxable to liquidity and assemblage constraints.

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