1 hour ago
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Omor Ibne Ehsan
Sat, March 14, 2026 astatine 9:54 AM CDT 6 min read
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Schwab US Dividend Equity ETF (SCHD) gained 12% year-to-date with a 3.39% dividend output and 10.61% mean yearly dividend maturation implicit 10 years, outperforming Vanguard High Dividend Yield ETF (VYM) astatine 2.35% output and iShares Core Dividend Growth ETF (DGRO) astatine 7.49% three-year dividend growth. SCHD holds lone 9% successful tech stocks versus important tech vulnerability successful VYM and DGRO, with 21% allocation to energy, 17% to user defensive, and 16% to healthcare.
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Capital is rotating distant from speculative AI stocks toward antiaircraft dividend stocks, positioning SCHD to pb dividend ETFs aft trailing for 3 years.
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The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.
Tech and maturation ETFs are perpetually changing, and it's hard to support up with them. Even definite dividend ETFs person hitched themselves to tech stocks by utilizing covered calls, and Schwab US Dividend Equity ETF (NYSEARCA:SCHD), Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM), and iShares Core Dividend Growth ETF (NYSEARCA:DGRO) stay among the lone refuges.
When idiosyncratic wants a mean dividend ETF they tin buy, hold, and reinvest into for snowballing income, they often conscionable privation to bargain the champion 1 alternatively of holding aggregate astatine once. 2026 has started disconnected arsenic a tumultuous year, truthful looking into this year's show is simply a bully gauge for however these ETFs tin execute successful the agelong run.
Of course, the show successful conscionable the past fewer months is not a bully barometer for however they whitethorn execute successful the future. We'll besides beryllium looking into what the aboriginal holds for each of them.
READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks
There's nary beating astir the bush here. This ETF has been sidesplitting it successful the past mates of months, and this volition beryllium rather astonishing to you if you don't support up with the market. The Schwab US Dividend Equity ETF was 1 of the worst-performing dividend ETFs from 2022 to 2025. You hardly got immoderate superior gains, and the dividends you did get weren't capable to enactment you up of the market.
Most different ETFs rode the coattails of AI, whereas SCHD had hardly immoderate tech names to talk of successful its holdings. This acceptable backmost the banal significantly, arsenic non-AI stocks kept lagging.
2026 changed the equation significantly, and SCHD kicked disconnected the twelvemonth by massively outperforming peers. Investors are nary longer blindly buying into immoderate institution that presents itself arsenic an AI company. Wall Street is present highly selective astir the companies it believes merit a premium, and for the archetypal clip successful a while, superior is yet rotating to antiaircraft and dividend stocks. This is SCHD's niche, and I expect the ETF to thrust a batch higher this year.
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