DGRO vs SCHD: Dividend Yield, Growth & Safety Comparison
iShares Core Dividend Growth ETF (DGRO) and Schwab US Dividend Equity ETF (SCHD) are both in the ETF sector, making them natural rivals for dividend investors. SCHD offers a significantly higher 3.51% yield compared to DGRO's 2.02%, a gap of 1.49%. Both stocks show similar dividend growth rates, each around 7.9% over the past five years. DGRO is a Dividend Challenger while SCHD is a Dividend Contender.
Key Metrics Comparison
| Metric | DGRO | SCHD |
|---|
| Dividend Yield | 2.02% | 3.51% |
| Annual Dividend | $1.45 | $1.05 |
| 5-Year CAGR | 7.9% | 8.7% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 9 | 14 |
| Price | $73.66 | $31.61 |
Yield Comparison
Schwab US Dividend Equity ETF (SCHD) currently yields 3.51%, which is solid for the broader market. That's 1.49% more than iShares Core Dividend Growth ETF (DGRO), which yields 2.02%. In dollar terms, SCHD pays $1.05/share annually versus DGRO's $1.45/share.
Dividend Growth
Over the past five years, SCHD has grown its dividend at a 8.7% CAGR compared to DGRO's 7.9%. DGRO: Dividend growth is slowing — the 3-year CAGR of 5.0% trails the 5-year rate of 7.9% and the 10-year rate of 12.6%. SCHD: Dividend growth has been steady, with a 3-year CAGR of 8.7% and a 5-year CAGR of 8.7% (10-year: 10.7%).
Dividend Safety
DGRO's dividend safety is rated "Unknown." Insufficient data to assess dividend safety. SCHD's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in SCHD generates approximately $351/year in dividend income, compared to $202/year from DGRO — a difference of $149/year. At $100,000, that gap widens to $1490/year.
Verdict
- Best for income: SCHD
- Best for growth: SCHD
Frequently Asked Questions
Which has a higher dividend yield, DGRO or SCHD?
Schwab US Dividend Equity ETF (SCHD) has a higher dividend yield of 3.51% compared to iShares Core Dividend Growth ETF (DGRO) at 2.02%.
Is DGRO or SCHD a better dividend growth stock?
Schwab US Dividend Equity ETF has the stronger dividend growth with a 5-year CAGR of 8.7%, compared to iShares Core Dividend Growth ETF's 7.9%.
How much income does $10,000 in DGRO vs SCHD generate?
A $10,000 investment in DGRO generates approximately $202/year in dividends, while the same amount in SCHD generates about $351/year.
Is DGRO or SCHD a Dividend Aristocrat?
iShares Core Dividend Growth ETF is a Dividend Challenger (9 years) and Schwab US Dividend Equity ETF is a Dividend Contender (14 years).
DGRO vs SCHD: which is better for retirement income?
It depends on your priorities. SCHD for current income, SCHD for dividend growth. Many retirement investors hold both for diversification.
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