Three of the most popular dividend ETFs — SCHD, VYM, and DGRO — each take a different approach to dividend investing. Here’s a data-driven comparison to help you decide which belongs in your portfolio, with projections from our SCHD Calculator.
Quick Comparison: SCHD vs VYM vs DGRO
- SCHD (Schwab U.S. Dividend Equity ETF): ~3.5% yield, ~10.6% 10-yr dividend CAGR, 0.06% expense ratio, 100 holdings
- VYM (Vanguard High Dividend Yield ETF): ~3.1% yield, ~6% 10-yr dividend CAGR, 0.06% expense ratio, 400+ holdings
- DGRO (iShares Core Dividend Growth ETF): ~2.3% yield, ~9% 10-yr dividend CAGR, 0.08% expense ratio, 400+ holdings
Which ETF Has the Best Long-Term Total Return?
When you combine dividend income with price appreciation and DRIP compounding, SCHD has historically delivered competitive total returns among its peers — particularly on a risk-adjusted basis. Its focus on quality metrics (cash flow, return on equity, dividend consistency) results in a portfolio of financially strong companies that tend to hold up better in downturns.
The Verdict
SCHD wins on dividend growth rate and income focus. VYM wins on diversification and stability. DGRO wins on growth potential with moderate income. Many investors hold a combination. Use our SCHD Calculator to model what each approach could mean for your portfolio over time.
This article is for educational purposes only and does not constitute financial advice.