Dividend investors have consistently gravitated toward the Schwab U.S.
Dividend Equity ETF (NYSEMKT: SCHD) for years, even when returns weren’t so great
It’s easy to see why. The fund’s portfolio consists of the high-yielding stocks of companies that are profitable, generate lots of cash, and usually hold up better than growth-oriented stocks in volatile markets. This fund is back on top of the dividend ETF category after last year’s rebalance, which switched roughly 20% of the portfolio into energy stocks at a very unpopular time, paid off handsomely in 2026.
This year’s results (the fund is up nearly 20%) have been a product of finally being invested in the right places at the right time. But at its core, the Schwab U.S. Dividend Equity ETF is an equity income machine.