SCHD vs VYM: Dividend Yield, Growth & Safety Comparison
Schwab US Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) are both in the ETF sector, making them natural rivals for dividend investors. SCHD offers a significantly higher 3.51% yield compared to VYM's 2.33%, a gap of 1.18%. For dividend growth, SCHD leads with a 5-year CAGR of 8.7% versus VYM's 3.1%. Both are classified as Dividend Contenders.
Key Metrics Comparison
| Metric | SCHD | VYM |
|---|
| Dividend Yield | 3.51% | 2.33% |
| Annual Dividend | $1.05 | $3.50 |
| 5-Year CAGR | 8.7% | 3.1% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 14 | 15 |
| Price | $31.61 | $155.43 |
Yield Comparison
Schwab US Dividend Equity ETF (SCHD) currently yields 3.51%, which is solid for the broader market. That's 1.18% more than Vanguard High Dividend Yield ETF (VYM), which yields 2.33%. In dollar terms, SCHD pays $1.05/share annually versus VYM's $3.50/share.
Dividend Growth
Over the past five years, SCHD has grown its dividend at a 8.7% CAGR compared to VYM's 3.1%. 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%). VYM: Dividend growth is slowing — the 3-year CAGR of 0.3% trails the 5-year rate of 3.1% and the 10-year rate of 5.3%.
Dividend Safety
SCHD's dividend safety is rated "Unknown." Insufficient data to assess dividend safety. VYM'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 $233/year from VYM — a difference of $118/year. At $100,000, that gap widens to $1180/year.
Verdict
- Best for income: SCHD
- Best for growth: SCHD
Frequently Asked Questions
Which has a higher dividend yield, SCHD or VYM?
Schwab US Dividend Equity ETF (SCHD) has a higher dividend yield of 3.51% compared to Vanguard High Dividend Yield ETF (VYM) at 2.33%.
Is SCHD or VYM 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 High Dividend Yield ETF's 3.1%.
How much income does $10,000 in SCHD vs VYM generate?
A $10,000 investment in SCHD generates approximately $351/year in dividends, while the same amount in VYM generates about $233/year.
Is SCHD or VYM a Dividend Aristocrat?
Schwab US Dividend Equity ETF is a Dividend Contender (14 years) and Vanguard High Dividend Yield ETF is a Dividend Contender (15 years).
SCHD vs VYM: 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.
SCHD Dividend Analysis | VYM Dividend Analysis | All Comparisons | Comparison Tool