Why Everyone’s Watching SCHD Right Now: The Dividend ETF That Could Outperform Big Tech This Year
A compelling source of stable income
SCHD aims to track the Dow Jones U.S. Dividend 100™ Index, featuring 100 U.S.-listed, dividend-paying companies with strong fundamentals. As of today, it yields around 3.8% annually, with the most recent quarterly payout accounting for an ex-dividend date of June 25, 2025.
Low cost, high consistency
One big plus—SCHD charges a mere 0.06% expense ratio, making it a cost-effective alternative to active dividend funds. Since its 3-for-1 split in October 2024, its shares remain accessible to smaller investors.
Strong capital resilience and recent recovery
Its NAV (Net Asset Value) hovers around 27.03 USD, rising roughly 2.5% in the past month, while year-to-date NAV shows a modest decline of -1.1%. However, analysts on major platforms note a bullish shift, pointing to a potentially critical turnaround this week.
Wall Street sentiment: mostly optimistic
Over 100 Wall Street analysts have weighed in, with a consensus 12-month price target of $30.02, ranging from a low of $24.80 to a high of $35.06—implying ~10.6% upside from current levels. Overall, consensus sentiment is a “Moderate Buy,” with a mix of 51 buys, 45 holds, and just 5 sells.
Why investors love SCHD
It offers robust, high-quality income from diversified sectors — industrials, consumer staples, financials — with reliable blue-chip firms like Coca‑Cola (KO), Home Depot (HD), and Chevron (CVX) among its holdings. Analysts from platforms like The Motley Fool argue that the current dip is a good buying window, especially for income-focused portfolios.
Points to consider
Critics on Reddit highlight that SCHD underperformed broad-market ETFs over the past year; if you’re chasing capital gains, a broader index fund might serve better. After a period of relative underperformance, it’s logically trading around 9% below its yearly peak, which some see as an incentive—but it could slip further if dividend trends weaken.
Is SCHD a good buy right now?
If your goal is to generate steady dividend income with minimal costs, SCHD is well-positioned. It offers a solid 3.8–4% yield, low fees, and access to quality dividends, aligning with many “income-first” strategies. Its recent pullback opens a window for a potentially attractive entry point.
However, for investors seeking aggressive growth, SCHD's conservative value tilt may not outperform broader index funds in bull markets. As Reddit users cautioned:
“It was easily my worst performer for the past year… you'd be better off with a broad market fund.”