If you're looking for a solid investment that can deliver both income and growth, consider the Schwab U.S. Dividend Equity ETF (SCHD +0.00%). Here's a look at it, and how it might perform for you over the coming decade.
The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which is focused on growing and fairly stable dividend-paying stocks. Its top holdings -- out of about 100 -- recently were Texas Instruments, with a recent dividend yield of 2.2%; Qualcomm, 2%; Procter & Gamble, 3%; and Coca-Cola, 2.5%. Altogether, the ETF's total dividend yield was recently 3%, which is three times that of the S&P 500 index's 1%.
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Here's its solid track record, including reinvested dividends:
|
Period |
Average Annual Gain |
|---|---|
|
Past 3 years |
15.6% |
|
Past 5 years |
9.3% |
|
Past 10 years |
12.5% |
Source: Morningstar.com, as of Oct., 2026.
Those numbers reflect the past, though. How might an investment in the Schwab U.S. Dividend Equity ETF perform in the next 10 years? Well, you might just use that 12.5% average annual gain from the table above to get an answer, but remember that the stock market's past 15-some years have delivered above-average growth. Growth may well slow down for a while. So let's be a bit more conservative and estimate 9%.
NYSEMKT: SCHD
Key Data Points
If you plunk, say, $10,000 into the Schwab U.S. Dividend Equity ETF today and it grows by 9% annually for a decade, including reinvested dividends, your stake will be worth around $23,700. If you invest $10,000 each year, you'd end up with a stake worth around $165,600. Of course, no one knows just how the ETF will perform. It might average 15% annual gains or 5% annual gains. But its past performance does suggest that it will serve income- and growth-seeking investors well over the long haul. And since it includes plenty of non-high-tech, non-growth stocks, it may be more resilient in a market pullback than some other high-profile, growth-oriented ETFs.
