SCHD vs VIG: Dividend Yield, Growth & Safety Comparison
Schwab US Dividend Equity ETF (SCHD) and Vanguard Dividend Appreciation ETF (VIG) are both in the ETF sector, making them natural rivals for dividend investors. SCHD offers a significantly higher 3.51% yield compared to VIG's 1.59%, a gap of 1.92%. For dividend growth, SCHD leads with a 5-year CAGR of 8.7% versus VIG's 7.5%. Both are classified as Dividend Contenders.
Key Metrics Comparison
| Metric | SCHD | VIG |
|---|
| Dividend Yield | 3.51% | 1.59% |
| Annual Dividend | $1.05 | $3.56 |
| 5-Year CAGR | 8.7% | 7.5% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 14 | 12 |
| Price | $31.61 | $227.44 |
Yield Comparison
Schwab US Dividend Equity ETF (SCHD) currently yields 3.51%, which is solid for the broader market. That's 1.92% more than Vanguard Dividend Appreciation ETF (VIG), which yields 1.59%. In dollar terms, SCHD pays $1.05/share annually versus VIG's $3.56/share.
Dividend Growth
Over the past five years, SCHD has grown its dividend at a 8.7% CAGR compared to VIG's 7.5%. 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%). VIG: Dividend growth is slowing — the 3-year CAGR of 5.3% trails the 5-year rate of 7.5% and the 10-year rate of 7.7%.
Dividend Safety
SCHD's dividend safety is rated "Unknown." Insufficient data to assess dividend safety. VIG'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 $159/year from VIG — a difference of $192/year. At $100,000, that gap widens to $1920/year.
Verdict
- Best for income: SCHD
- Best for growth: SCHD
Frequently Asked Questions
Which has a higher dividend yield, SCHD or VIG?
Schwab US Dividend Equity ETF (SCHD) has a higher dividend yield of 3.51% compared to Vanguard Dividend Appreciation ETF (VIG) at 1.59%.
Is SCHD or VIG 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 Vanguard Dividend Appreciation ETF's 7.5%.
How much income does $10,000 in SCHD vs VIG generate?
A $10,000 investment in SCHD generates approximately $351/year in dividends, while the same amount in VIG generates about $159/year.
Is SCHD or VIG a Dividend Aristocrat?
Schwab US Dividend Equity ETF is a Dividend Contender (14 years) and Vanguard Dividend Appreciation ETF is a Dividend Contender (12 years).
SCHD vs VIG: 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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