How to invest in SCHD ETF

Anyone can invest in the Schwab U.S. Dividend Equity ETF (SCHD). The fund trades publicly on a major stock exchange, enabling anyone with a brokerage account to buy shares. To invest in the ETF, you would open the order page at your brokerage account and fill out all the relevant information, including:The number of shares you want to buy or the amount you want to invest to purchase fractional sharesThe stock ticker (SCHD for Schwab U.S. Dividend Equity ETF)Whether you want to place a limit order or a market orderReview your order and then click submit to add this dividend ETF to your portfolio.

Is Schwab U.S. Dividend Equity ETF a good investment?

The Schwab U.S. Dividend Equity ETF can be a good investment. Over the last decade, the fund has delivered an 12.4% annualized total return, roughly matching the returns of the Dow Jones U.S. Dividend 100 Index (12.5% average annual total return). It has outperformed the average large-cap value stock (10.7% annualized total return). However, it has lagged the S&P 500 during that period (15.6% annualized total return). This ETF can be a good investment for those seeking income and equity-like returns with less volatility than the broader market. Its features make it ideal for people at or nearing retirement, or for those seeking a lower-volatility, income-focused investment to help diversify their portfolio and reduce risk.

How much does SCHD pay in dividends per month?

The Schwab U.S. Dividend Equity ETF (SCHD) pays quarterly dividends. As of May 2026, the last four distributions were:March 30, 2026: $0.2569 per shareDec. 15, 2025: $0.2782 per shareSept. 29, 2025: $0.2604 per shareJune 30, 2025: $0.2602 per shareThe payment fluctuates based on the dividends the fund receives from its holdings each quarter. Its payments over the last 12 months gave the fund a trailing dividend yield of 3.44%.

What companies are in the Schwab US Dividend Equity ETF?

The Schwab U.S. Dividend Equity ETF holds shares of 100 dividend-paying companies. The fund's holdings tended to pay higher-yielding dividends that steadily rose. As of early May 2026, the fund's five largest holdings were Texas Instruments, Qualcomm, UnitedHealth, Chevron, and Coca-Cola.

How much do I need to invest in SCHD to make $1,000 a month?

You'd need to invest $360,000 into SCHD to generate $12,000 in annual dividend income ($1,000 a month), given the fund's 3.3% yield (as of early May 2026).

Is SCHD better than QQQ?

SCHD is better than QQQ if you want to generate dividend income. As of early May 2025, SCHD's yield was 3.3%, compared to 0.5% for QQQ. However, QQQ has delivered higher total returns over the long term than SCHD. Over the last 10 years, QQQ has generated a 19% annualized total return compared to 12.4% for SCHD. QQQ should continue to deliver higher returns due to its focus on faster-growing companies, whereas SCHD focuses on higher-yielding dividend stocks.

How to Buy Schwab U.S. Dividend Equity ETF (SCHD)

How to Invest in Schwab U.S. Dividend Equity ETF (SCHD)

By Matthew DiLallo – Updated May 7, 2026 at 9:43 AM EST | Fact-checked by Frank Bass

Key Points

SCHD ETF tracks the Dow Jones U.S. Dividend 100 Index, offering access to 100 top dividend stocks.
The fund pays dividends quarterly, providing a higher yield (3.4%) compared to the S&P 500's 1.1%.
SCHD's low expense ratio (0.06%) maximizes retained dividend earnings for investors.

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NYSEMKT: SCHD

Schwab U.S. Dividend Equity ETF

Today's Change

(-0.80%) $-0.26

Current Price

$32.33

Key Data Points

Day's Range

$32.33 - $32.66

52wk Range

$26.16 - $32.91

Volume

807.2K

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For example, a $10,000 investment in the Schwab U.S. Dividend Equity ETF would incur $6 in management fees each year, about $10 less than other passively managed funds. The fund's lower expense ratio enables investors to keep more of the dividend income generated by the ETF's holdings. Although it might not seem like much at first, it adds up over time.

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Data source: Schwab.

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As the table shows, the fund has underperformed its benchmark over the past one-, three-, and five-year periods. However, it has outperformed its benchmark over the past 10 years.

Even though the fund has lagged its benchmark, it offers higher income and lower volatility. Those features can make it a solid option for investors seeking an income-focused fund that can still deliver strong total returns.

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Investing in Schwab U.S. Dividend Equity ETF FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

Charles Schwab is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Coca-Cola, ConocoPhillips, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool recommends Charles Schwab, ConocoPhillips, Lockheed Martin, and Verizon Communications and recommends the following options: short March 2026 $100 calls on Charles Schwab. The Motley Fool has a disclosure policy.

How to Invest in Schwab U.S. Dividend Equity ETF (SCHD)

Key Points

NYSEMKT: SCHD

Key Data Points

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Investing in Schwab U.S. Dividend Equity ETF FAQ

How to invest in SCHD ETF

Is Schwab U.S. Dividend Equity ETF a good investment?

How much does SCHD pay in dividends per month?

What companies are in the Schwab US Dividend Equity ETF?

How much do I need to invest in SCHD to make $1,000 a month?

Is SCHD better than QQQ?

What is the Schwab U.S. Dividend Equity ETF?

How to buy the Schwab U.S. Dividend Equity ETF

Does the Schwab U.S. Dividend Equity ETF pay a dividend?

What is the Schwab U.S. Dividend Equity ETF's expense ratio?

Historical performance of the Schwab U.S. Dividend Equity ETF

The bottom line

Related investing topics

FAQ

NYSEMKT: SCHD

Key Data Points

Holdings of the Schwab U.S. Dividend Equity ETF