KO vs SCHD: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | KO | SCHD |
|---|
| Dividend Yield | 2.58% | 3.51% |
| Annual Dividend | $2.04 | $1.05 |
| 5-Year CAGR | 5.0% | 8.7% |
| Payout Ratio | 67% | N/A |
| Consecutive Years | 23 | 14 |
| Price | $78.74 | $31.61 |
Yield Comparison
Schwab US Dividend Equity ETF (SCHD) currently yields 3.51%, which is solid for the broader market. That's 0.93% more than Coca Cola Co (KO), which yields 2.58%. In dollar terms, SCHD pays $1.05/share annually versus KO's $2.04/share.
Dividend Growth
Over the past five years, SCHD has grown its dividend at a 8.7% CAGR compared to KO's 5.0%. 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's dividend safety is rated "Moderate." 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. 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 $258/year from KO — a difference of $93/year. At $100,000, that gap widens to $930/year.
Verdict
- Best for income: SCHD
- Best for growth: SCHD
- Best for safety: KO
Frequently Asked Questions
Which has a higher dividend yield, KO or SCHD?
Schwab US Dividend Equity ETF (SCHD) has a higher dividend yield of 3.51% compared to Coca Cola Co (KO) at 2.58%.
Is KO 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 Coca Cola Co's 5.0%.
Which is safer for dividend income, KO or SCHD?
Coca Cola Co's dividend safety is rated "Moderate" while Schwab US Dividend Equity ETF is rated "Unknown." 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.
How much income does $10,000 in KO vs SCHD generate?
A $10,000 investment in KO generates approximately $258/year in dividends, while the same amount in SCHD generates about $351/year.
Is KO or SCHD a Dividend Aristocrat?
Coca Cola Co is a Dividend Contender (23 years) and Schwab US Dividend Equity ETF is a Dividend Contender (14 years).
KO vs SCHD: which is better for retirement income?
It depends on your priorities. SCHD for current income, SCHD for dividend growth, KO for safety. Many retirement investors hold both for diversification.
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