KO vs SCHD: Dividend Comparison
Dividend data as of
Coca Cola Co (KO) from Consumer Staples and Schwab US Dividend Equity ETF (SCHD) from ETF offer different dividend profiles for income-focused portfolios. SCHD edges ahead on yield at 3.51% versus KO's 2.58%. For dividend growth, SCHD leads with a 5-year CAGR of 8.7% versus KO's 5.0%. Both are classified as Dividend Contenders.
Verdict
Yield Analysis
SCHD yields 0.93% more than KO. In dollar terms, KO pays $2.04/share vs SCHD's $1.05/share annually.
Dividend Growth
KO: Dividend growth has been steady, with a 3-year CAGR of 5.3% and a 5-year CAGR of 5.0% (10-year: 4.3%).
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
KO: The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in KO vs SCHD today?
At $78.74 per share, $10,000 buys about 127.0 shares of Coca Cola Co (KO). Each share pays $2.04 per year in dividends, so the position starts out generating roughly $259 per year — about $22 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: $72 per year more on the same $10,000 invested.
What could $10,000 of KO or SCHD income look like in 10 years?
Coca Cola Co (KO) has raised its dividend about 5.0% a year over the past five years. If that pace held, the $258 per year that $10,000 generates today at the current 2.58% yield would reach $419 per year by 2036 — a 4.2% 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 $419 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would KO'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 2.58%) and has also grown its dividend at least as fast (8.7% vs 5.0% a year over five years). Unless KO accelerates its raises or SCHD stumbles, KO never closes the income gap — SCHD wins on both current income and growth.
Why is there no payout ratio for SCHD?
REWD has neither an earnings-per-share figure nor a payout ratio for 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.
Coca Cola Co (KO) earns $3.04 per share against $2.04 paid out in dividends — 1.5x coverage (a 67% payout ratio). That's the usual corporate affordability test — it just doesn't translate to the fund side of this comparison.
Which fits an early-retirement income portfolio better, KO 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 $215 a month from Coca Cola Co (KO) at 2.58%.
SCHD also leads on dividend growth (8.7% vs 5.0% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: KO has raised its dividend 23 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 $541/yr in KO 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.
Track KO and SCHD in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.