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SCHD ETF: Early Investors Reap 12.5% Yield on Cost
20 Apr
Summary
- Early SCHD investors now see a 12.5% yield on original cost.
- SCHD has gained 14% year-to-date, attracting new investment.
- Dividends act as a partial bond replacement amid inflation.

The Schwab U.S. Dividend Equity ETF (SCHD) is capturing renewed investor interest, highlighting the long-term rewards of dividend investing. Early investors who purchased SCHD since its 2011 debut are now benefiting from a yield on cost reaching 12.5%. This significant return reflects the value of holding the ETF through various market cycles. SCHD has achieved a 14% year-to-date gain, bolstering its appeal to those seeking steady income and a more stable investment profile.
This performance comes as dividend strategies are experiencing a resurgence. U.S. dividend income funds collectively attracted $24.1 billion in the first quarter of 2026, with SCHD receiving approximately $4 billion in inflows. Analysts view the fund favorably, with a Moderate Buy consensus and an expected market-performing Smart Score. Despite competition, SCHD's focus on mature companies with consistent dividend payments and a low expense ratio of 0.06% continues to attract investors looking for income and equity exposure.