NEW YORK, April 6, 2026, 11:17 AM EDT
The Schwab U.S. Dividend Equity ETF is back in focus, with a new quarterly payout and a March reshuffling of its holdings putting dividend strategies back in the spotlight during uncertain times. SCHD hovered near $30.57 late Monday morning in New York.
Timing is key here. In the first quarter, U.S. dividend funds collected $24.1 billion—their largest opening-quarter haul in four years—as investors, spooked by geopolitical risk and rate swings, sought out reliable income. SCHD scooped up around $4 billion on its own. “Investors are gravitating toward dividend strategies,” EY’s Jun Li told Reuters. Shanon Davis at American Alternative Assets described dividends as a “partial substitute” for bonds. Reuters
The March quarter dividend landed at $0.2569 a share, roughly 3.3% higher than last year’s $0.2488. Schwab’s site listed a 30-day SEC yield at 3.41% as of April 1.
This year, SCHD’s annual reconstitution wasn’t just for show. The index made some real moves—22 stocks out, 25 in. Notable newcomers: UnitedHealth Group, Procter & Gamble, and Abbott Laboratories. Heading out: AbbVie, Cisco Systems, and Valero.
The portfolio looks different after the move. According to Motley Fool, health care gained 3.6 percentage points and technology picked up 3.4, but energy lost 7.1 and materials slipped 3. Seeking Alpha noted the reshuffle steered the fund into higher-quality dividend growers.
Schwab points to the Dow Jones U.S. Dividend 100 Index as the fund’s benchmark. S&P Dow Jones calls the index a group of U.S. stocks with strong fundamentals and steady, above-average payouts. Schwab’s site, as of early April, showed the fund holding 104 stocks, managing $84.8 billion in assets, with a 0.06% expense ratio.
On April 2, Chevron, ConocoPhillips, Merck, Coca-Cola, and Verizon sat among the portfolio’s largest stakes. UnitedHealth and Abbott had cracked the top 10 by then as well. That’s a notably different lineup compared with some rivals: BlackRock’s iShares Core Dividend Growth ETF disclosed 395 holdings with a 2.01% 30-day SEC yield, while data from Vanguard’s Dividend Appreciation ETF showed a 1.66% 30-day SEC yield, according to its website.
This might go either direction. Energy-heavy dividend funds have seen gains as oil prices jumped following the Iran conflict, Reuters said last week. If oil prices retreat, SCHD’s lower exposure could cushion the blow—but if the rally keeps going, SCHD might underperform rivals sticking with energy. Chevron and ConocoPhillips are still its top holdings after the recent changes.
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