Investment can sometimes feel like a blend of art, science, and history. Today, we’ll travel back in time, exploring the evolution of one particular star: the Schwab US Dividend Equity ETF (SCHD). Let’s unveil the story behind its impressive run and dive deep into its historical distributions.
Introduction to SCHD
The Schwab US Dividend Equity ETF (SCHD) is a popular ETF, known for targeting high-quality dividend-paying US companies. It “seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.” This ETF has become a favorite among investors due to its blend of stability, growth, and attractive dividends.
It holds some of the top large cap dividend payers in the United States, including:
- Coca-Cola
- Broadcom Inc
- AbbVie Inc
- Merck & Co Inc
- Chevron Corp
- Texas Instruments Inc
- Lockheed Martin Corp
- Home Depot Inc
- Altria Group Inc
SCHD’s Journey
From its inception, SCHD has steadily made its mark in the investment world. Its trajectory hasn’t been a straight line; markets have their ups and downs. But through it all, SCHD has managed to hold its ground and deliver consistent dividends.
A Glimpse at Historical Distributions
It’s one thing to talk about an ETF’s performance and quite another to see the numbers. Here’s a breakdown of SCHD’s historical cash distributions over the past few years:
2023
Total Dividends: $1.9257 (so far)
- 09/20/2023: $0.6545
- 06/21/2023: $0.6647
- 03/22/2023: $0.5965
2022
Total Dividends: $2.5510
Growth from Previous Year: +10.47%
- 12/07/2022: $0.7034
- 09/21/2022: $0.6367
- 06/22/2022: $0.7038
- 03/23/2022: $0.5176
2021
Total Dividends: $2.2495
Growth from Previous Year: +4.09%
- 12/08/2021: $0.6198
- 09/22/2021: $0.5870
- 06/23/2021: $0.5396
- 03/24/2021: $0.5026
2020
Total Dividends: $2.1589
Growth from Previous Year: +13.38%
- 12/10/2020: $0.6015
- 09/23/2020: $0.5430
- 06/24/2020: $0.4420
- 03/25/2020: $0.4419
SCHD has a long history of dividend growth, even during relatively tumultuous years in the market.
- 10 year growth rate: 11.11%
- 5 year growth rate: 13.69%
- 3 year growth rate: 11.44%
In 2019, the dividend growth rate YoY was 19.79%. 2020 dividends, despite Covid wreaking havoc on the global economy, saw a 17.64% annual payout growth.
What Drives SCHD’s Consistency?
You might wonder: what’s the secret sauce? SCHD’s stability comes from its strategic investment choices. By focusing on high-quality dividend-paying US companies, it ensures a steady stream of income. Moreover, the underlying stocks are generally from well-established companies that have weathered various economic cycles.
The Current Snapshot
As of now, the SCHD ETF trades at a price of $71.79. It’s a testament to its consistent growth and trust from its investors over the years.
The Big Picture
The data clearly shows the trajectory of growth for SCHD’s dividends over the years. As an investor, understanding this historical perspective provides invaluable insight. It not only reveals SCHD’s past performance but also highlights the underlying potential of its investment strategy.
In particular, observing the year-over-year growth provides a keen sense of how SCHD manages to grow its dividends consistently. This is a characteristic often sought by dividend growth investors, aiming to compound their returns over time.
In conclusion, the Schwab US Dividend Equity ETF (SCHD) stands as a testament to the potential of dividend growth investing. With its consistent distributions and upward trajectory, it certainly makes for an appealing choice for those aiming for steady growth in their portfolio.
