Early SCHD ETF investors now earn a 12.5% dividend yield on cost
By Aditya Raghunath
Published on April 20, 2026.
The Schwab U.S. Dividend Equity ETF (SCHD) has been a popular vehicle for investors seeking passive income. The fund launched in October 2011 with a modest yield of around 2.6%. Early investors now earn a 12.5% dividend yield on cost after more than a decade of consistent dividend growth. Since its inception in 2011, SCHD has delivered a cumulative total return of 490%, equating to a 13.3% annualized average. A $10,000 investment in the fund has grown to over $59,000 as of March 2026, after adjusting for dividend reinvestments. Morningstar's Bryan Armour, Director of ETF and Passive Strategies Research for North America, praised the fund's risk-conscious approach, which generates better long-term risk-adjusted returns than the Russell 1000 Value Index. Top holdings include Texas Instruments, UnitedHealth Group, Chevron, PepsiCo, and Coca-Cola.
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