DGRO vs SCHD: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
SCHD yields 1.49% more than DGRO. In dollar terms, DGRO pays $1.45/share vs SCHD's $1.05/share annually.
Dividend Growth
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
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DGRO vs SCHD today?
At $73.66 per share, $10,000 buys about 135.8 shares of iShares Core Dividend Growth ETF (DGRO). Each share pays $1.45 per year in dividends, so the position starts out generating roughly $197 per year — about $16 a month.
At $31.61 per share, $10,000 buys about 316.4 shares of Schwab US Dividend Equity ETF (SCHD). Each share pays $1.05 per year in dividends, so the position starts out generating roughly $331 per year — about $28 a month.
SCHD is the larger income stream from day one: $134 per year more on the same $10,000 invested.
What could $10,000 of DGRO or SCHD income look like in 10 years?
iShares Core Dividend Growth ETF (DGRO) has raised its dividend about 7.9% a year over the past five years. If that pace held, the $202 per year that $10,000 generates today at the current 2.02% yield would reach $430 per year by 2036 — a 4.3% yield on the original cost.
Schwab US Dividend Equity ETF (SCHD) has raised its dividend about 8.7% a year over the past five years. If that pace held, the $351 per year that $10,000 generates today at the current 3.51% yield would reach $808 per year by 2036 — a 8.1% yield on the original cost.
On those trailing rates, SCHD pays more in 2036: $808 versus $430 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would DGRO's dividend growth overtake SCHD's higher yield?
It doesn't, on the trailing numbers. Schwab US Dividend Equity ETF (SCHD) yields more today (3.51% vs 2.02%) and has also grown its dividend at least as fast (8.7% vs 7.9% a year over five years). Unless DGRO accelerates its raises or SCHD stumbles, DGRO never closes the income gap — SCHD wins on both current income and growth.
Why is there no payout ratio for DGRO or SCHD?
REWD has neither an earnings-per-share figure nor a payout ratio for iShares Core Dividend Growth ETF (DGRO) and Schwab US Dividend Equity ETF (SCHD) — typical for ETFs and covered-call funds, whose distributions are funded by the underlying portfolio (stock dividends, option premium, or return of capital) rather than a single company's earnings. For a fund, judge sustainability by the distribution history and the strategy behind it, not a payout ratio.
Which fits an early-retirement income portfolio better, DGRO or SCHD?
For income you need right now, Schwab US Dividend Equity ETF (SCHD) leads: $100,000 invested today pays about $293 a month at the current 3.51% yield, versus $168 a month from iShares Core Dividend Growth ETF (DGRO) at 2.02%.
SCHD also leads on dividend growth (8.7% vs 7.9% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: DGRO has raised its dividend 9 consecutive years; SCHD has raised its dividend 14 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $526/yr in DGRO vs $1,141/yr in SCHD by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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