How to Use Our SCHD Dividend Calculator
To get a clear projection, you’ll need to input your investment plan and make some assumptions about future growth.
Initial Investment ($): Enter the total dollar amount you are investing in SCHD today. The calculator will use SCHD’s current market price to estimate the number of shares.
Monthly Contribution ($): The amount of new money you plan to invest in SCHD each month.
Investment Horizon (Years): The total number of years you plan to hold and contribute to your SCHD investment.
Expected Dividend Growth (%): This is a critical assumption. Enter the average annual rate at which you expect SCHD’s dividend to grow. Historically, SCHD’s 5-year dividend growth has been over 10%, but you may wish to use a more conservative number (e.g., 7-9%) for planning.
Reinvest Dividends (DRIP): Select ‘Yes’ to automatically reinvest your dividends to buy more shares, which accelerates compounding. Select ‘No’ to assume you are taking the dividends as cash.
Understanding Your Results
Once you’ve entered your plan, the calculator provides a comprehensive summary of your investment’s potential future. The results are broken down to show you not just the final value, but how you got there.
A projection chart will also show the powerful divergence between your contributions and the total value, illustrating how reinvested dividends and growth can create a compounding effect over time.
Frequently Asked Questions About SCHD and Its Dividends
What is SCHD’s current dividend yield and growth rate?
As of July 2025, the Schwab U.S. Dividend Equity ETF™ (SCHD) has a dividend yield of approximately 3.5%. Its 5-year compound annual growth rate (CAGR) for its dividend has been approximately 12%.
Disclaimer: These figures are based on historical data and current market conditions, which are subject to change. Past performance is not an indicator of future results.
How often does SCHD pay dividends?
SCHD pays dividends quarterly. The payments are typically distributed in the months of March, June, September, and December.
What is DRIP and should I use it for SCHD?
DRIP stands for Dividend Reinvestment Plan. When you enable DRIP in your brokerage account, any dividends you receive from SCHD are automatically used to purchase more shares of SCHD (often fractional shares).
For investors focused on long-term growth, enabling DRIP is one of the most powerful strategies. It accelerates the compounding process: more shares lead to higher dividend payments, which in turn buy even more shares.
Are SCHD dividends “qualified”?
A significant portion of SCHD’s dividends have historically been qualified dividends. Qualified dividends are taxed at the more favorable long-term capital gains tax rates instead of higher ordinary income tax rates. However, the exact percentage can change each year. You should always refer to the official year-end tax information provided by Schwab and consult with a tax professional.
What is a realistic dividend growth rate to use?
While SCHD has a strong history of double-digit dividend growth, it’s wise to be conservative for planning purposes.
Optimistic Case: 10-12% (in line with historical performance).
Moderate Case: 7-9% (accounts for potential slowdowns).
Conservative Case: 5-6% (a safe harbor assumption for long-term planning).
The rate you choose in the calculator is one of the biggest factors in your projection, so consider running multiple scenarios.
What are the risks of investing in SCHD?
While SCHD is a diversified ETF, it is not without risk.
Market Risk: As an equity ETF, its price will fluctuate with the overall stock market. The value of your investment can go down.
Dividend Risk: The dividends paid by the companies within the ETF are not guaranteed. In a severe economic downturn, companies may cut their dividends, which would reduce SCHD’s payout.
Concentration Risk: The fund tracks an index of only 100 stocks, so it is less diversified than a total market fund.
How does SCHD select its stocks?
SCHD tracks the Dow Jones U.S. Dividend 100™ Index. This index screens for large-cap U.S. companies with a record of consistently paying dividends. The selection process focuses on fundamental strength, including factors like cash flow to total debt, return on equity, dividend yield, and the 5-year dividend growth rate. This methodology is what gives SCHD its focus on quality and dividend sustainability.
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