In this article, we break down why the Schwab US Dividend Equity ETF (SCHD), the 'gold standard' of dividend growth, outperforms the Virtus InfraCap US Preferred Stock ETF, PFFA by 16% YTD. Is high dividend yield worth the risk of silent capital erosion? While the broad market hits all-time highs in 2026, a PFFA is drastically underperforming. What dangerous trap is hidden beneath its 9.7% yield, and why am I urgently cutting its rating?
A million dollars dropped into Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) on June 8, 2016, with every quarterly dividend pulled out as cash the way an actual retiree would spend it, is worth about $2.3 million today.
Both Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM) appear similar on screeners, but their income delivery and market positioning differ fundamentally.
The Schwab US Dividend Equity (SCHD) ETF has held steady in the past few days, even as the broader stock market has remained on edge, with the S&P 500 and Nasdaq 100 indices being in a freefall. SCHD was trading at $32.30, a few points below the year-to-date high.
At the 24% federal bracket, a $500,000 portfolio kicking off $17,500 a year in dividends costs roughly $2,625 in federal tax inside a taxable brokerage account, every year, forever.
For a 59-year-old pre-retiree sitting on a six-figure dividend core, the choice between iShares Core Dividend Growth ETF (NYSEARCA:DGRO) and Schwab U.S.
A 63-year-old retiree with $400,000 parked in the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) likely picked it for the 100-stock screen and the reliable income stream.
Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD | SCHD Price Prediction) has become the default income holding for U.S.
Schwab US Dividend Equity Fund remains a core holding, offering a 3.29% yield and pushing 15 years of consecutive dividend growth. SCHD's recent outperformance versus the S&P 500 was driven by value and energy tilt, but also saw technology names like QCOM and TXN drive it further. The ETF's dividend CAGR is 10.43% over 10 years and 6.25% over 3 years, providing inflation-beating growth and over 3x the S&P 500's yield.
This is the dividend growth lane.
Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD | SCHD Price Prediction) has become one of the most-owned dividend funds in the country, with $71.6 billion in assets and a 0.06% expense ratio.
The Schwab US Dividend Equity (SCHD) ETF rocketed to a record high last week, meeting our previous forecasts. It ended the week at $32.83, bringing its year-to-date gains to nearly 20%.