Should I buy Schwab U.S. Dividend Equity ETF stock in 2025?

What is the Schwab U.S. Dividend Equity ETF?

How much is the Schwab U.S. Dividend Equity ETF stock?

The price of Schwab U.S. Dividend Equity ETF stock is rising this week. As of now, the ETF is trading at $26.19, up $0.15 (+0.58%) over the last 24 hours, though showing a -2.12% change for the week. The fund boasts a market capitalisation of $68.04 billion and an average 3-month volume of 18.87 million shares. With a P/E Ratio of 15.81, a robust dividend yield of 4.03%, and a stock beta ranging from 0.79 to 1.00, SCHD offers appealing value for income-focused investors. While volatility remains moderate, SCHD’s high-quality dividend strategy may appeal to those seeking stability and consistent returns, even in challenging markets.

Our full analysis on the Schwab U.S. Dividend Equity ETF stock

After reviewing Schwab U.S. Dividend Equity ETF’s (SCHD) recent financial results and its solid performance trajectory over the past three years, we have integrated a spectrum of financial metrics, technical indicators, peer analysis, and proprietary market data into our rigorous assessment. This multi-faceted review highlights both subtle and pronounced strengths that position SCHD as a resilient vehicle for stability and yield-driven growth in an evolving market. So, why might Schwab U.S. Dividend Equity ETF once again become a strategic entry point into the U.S. dividend equity sector in 2025?

Recent Performance and Market Context

The current trading price of SCHD stands at $26.19 (as of 29 May 2025), just off its 52-week low of $23.87 and well below its recent peak of $29.72. Despite a minor dip of 2.12% over the last week and a 6-month soft patch (-11.04%), the ETF has delivered a resilient 1-year performance ranging from +2.81% to +4.49%. Crucially, SCHD’s 10-year annualised return averages 10.47%, and since inception in 2011, it’s recorded an impressive annualised total return of over 12%. These returns underscore SCHD’s ability to generate consistent value through varying market cycles.

In 2025, SCHD has executed a transformative 3-for-1 stock split (October 2024) and completed its annual reconstitution, resulting in a 19.2% portfolio turnover and a 22% year-on-year increase in dividend distributions. This active management, combined with a relatively high dividend yield of roughly 4%—substantially outperforming the S&P 500’s average yield—strengthens its appeal in a climate where income and capital preservation are at a premium.

Favourably, macroeconomic factors remain supportive of quality dividend strategies. Persistently moderate inflation and forecasts of stable central bank policy render dividend equities a persistent hedge against volatility, especially for Irish investors seeking predictable cash flows and lower correlation with high-beta tech growth names.

Technical Analysis

From a technical standpoint, SCHD is demonstrating early signs of bottoming and regaining momentum. The 14-day RSI at 51.2 suggests a neutral stance, but more critically, the MACD has just turned positive (+0.02), accompanied by upward momentum (0.19)—both indicating the potential emergence of a bullish phase.

The ETF is currently trading just above its 20-day moving average ($26.07), a traditional signal of near-term strength, and is flirting with its key resistance range ($26.00–$26.19). This area, once convincingly broken, could catalyse a robust upside move toward the next technical targets. The 50-day, 100-day, and 200-day moving averages (all positioned between $26.23 and $27.62) will act as reference points for monitoring trend reversals. Critically, strong support in the $25.45–$25.74 zone serves as a cushion against significant downside risk.

Such a configuration, combined with a well-defined range, suggests a constructive technical set-up for investors seeking tactical entry before renewed momentum.

Fundamental Analysis

• Robust Asset Base: With $68.04 billion in AUM and 2.6 billion shares outstanding, SCHD ranks amongst the largest and most liquid equity income ETFs globally.
• Superior Yield: The current dividend yield of 3.94–4.03% handily outpaces the S&P 500, making SCHD one of the standout choices for income-seekers when traditional cash and fixed-income returns are muted.
• Attractive Valuation: The ETF sports a compelling P/E of roughly 15.8, favourably positioned relative to broader U.S. equities, and reinforcing its value orientation.
• Low Costs: SCHD’s total expense ratio is a mere 0.06%, a hallmark of cost discipline that maximises long-term returns.
• Portfolio Quality: With a top-10 composition led by blue-chip stalwarts like Coca-Cola, Verizon, Altria Group, Cisco Systems, and Lockheed Martin, SCHD draws strength from stable, moat-rich, high-dividend franchises.
• Consistent Profitability: Underlying holdings generate a weighted average return on equity of 29%; price/cash flow and price/book ratios (8.77 and 3.06, respectively) emphasise capital efficiency and prudent sector allocation.
• Resilient Dividend Growth: The latest March distribution ($0.2488) marks a 22% increase over the previous year, cementing SCHD’s reputation as a dividend growth engine.

Even accounting for a measured under-allocation to mega-cap tech and a degree of interest rate sensitivity, the ETF counterbalances these factors with superior dividend sustainability, sector diversification, and minimal concentration risk.

Volume and Liquidity

Market confidence in SCHD is reflected in its robust average daily trading volume of 18.87 million shares and a substantial float. The stock split in Q4 2024 has further incentivised liquidity and retail participation, supporting dynamic price discovery and tight bid-ask spreads. For Irish and European investors particularly attuned to market efficiency and execution, this liquidity ensures access and minimises frictional costs, making it suitable for both larger allocations and tactical trading.

Catalysts and Positive Outlook

• 2025 Portfolio Enhancement: The recently completed annual reconstitution introduced higher-quality companies and a 22% dividend expansion, directly enhancing yield and resilience.
• Defensive Tilt with Upside: With sector allocations into energy (21%), consumer staples (19%), healthcare (16%), and industrials (12%), SCHD positions itself as a steady performer regardless of economic cyclicality.
• Attractive Risk-Reward: The ETF’s 5-year beta near or below 1.0 translates to lower volatility relative to the market, an edge in climates marked by episodic shocks.
• ESG Considerations: While not an explicit ESG fund, many top holdings meet robust governance, risk, and sustainability criteria valued increasingly by European investors.
• Tax Efficiency: SCHD’s structure exposes Irish investors to the preferential U.S. tax regime, with qualified dividend treatment and competitive cost ratios.
• Repricing Opportunity: With a 30% price objective ($34.05) based on trailing averages and historical mean-reversion patterns, the ETF appears positioned for significant appreciation should economic confidence rebound and the recent selloff abate.

Investment Strategies

• Short-Term Positioning: The ETF’s consolidation near its support base ($25.45–$25.74) and emerging technical momentum suggest an attractive setup for those seeking to capitalise on a near-term reversal or rally into key macro catalysts.
• Medium-Term Approach: Investors anticipating a stabilisation in rates or rotation toward defensive yield assets will appreciate SCHD’s secure yield, robust distribution history, and compelling valuation as potential drivers of outperformance.
• Long-Term Allocation: For those constructing multi-year income portfolios, SCHD’s proven track record, dividend growth, and low fees present a highly rational core holding. Its performance over 5 and 10 years (12.7% and 10.5% average annual returns, respectively) demonstrates powerful compounding potential—especially when rebalancing strategies and dividend reinvestment are utilised.
• Ideal Entry Point: The intersection of technical support, undervaluation relative to fundamentals, and positive distribution momentum offers multiple rationales for building or increasing exposure before the next market shift.

Is it the Right Time to Buy Schwab U.S. Dividend Equity ETF?

Synthesising the data, SCHD stands out through its blend of strong distribution growth, sectoral resilience, cost discipline, and blue-chip portfolio. The ETF is trading close to technical support, exhibiting early bullish signals, and carries a low P/E—and its dividend yield of approximately 4% is an increasingly rare benefit.

• Key strengths:
• Long-term outperformance with manageable volatility
• Attractive valuation and exceptional dividend growth
• Defensive but opportunistic sector allocation
• Demonstrable liquidity and tax efficiency
• Clear evidence of increased portfolio quality and yield after the 2025 reconstitution

Looking ahead, SCHD’s combination of quality, stability, and upside potential seems to represent an excellent opportunity for investors targeting resilient income, particularly as the market seeks clarity amidst macroeconomic uncertainty. For Irish investors seeking diversification and inflation-protected returns in their portfolios, SCHD’s robust attributes and positive distribution trajectory justify renewed interest.

With technical and fundamental indicators aligning and multiple catalysts on the horizon, Schwab U.S. Dividend Equity ETF may be entering a new bullish phase—one that merits serious consideration as a strategic core allocation for income-oriented and risk-aware investors alike. In this environment, SCHD appears poised to turn market headwinds into a lasting source of growth and yield, offering a compelling avenue for disciplined portfolio construction and forward-looking investment outcomes.

How to buy Schwab U.S. Dividend Equity ETF stock in Ireland?

Buying Schwab U.S. Dividend Equity ETF (SCHD) shares online is straightforward and secure for Irish investors when using a regulated brokerage. You have two main options: direct spot buying, which gives you ownership of the ETF, or trading Contract for Difference (CFD) products, which let you speculate on price movements without owning the asset. Each method has its distinct features and fee structures, tailored to different investor profiles. To help you find the ideal solution for your needs, you’ll find a detailed broker comparison further down this page.

Spot Buying (Cash Purchase)

Spot buying, or cash purchase, means you acquire units of the Schwab U.S. Dividend Equity ETF (SCHD) directly, making you a shareholder in the ETF. This method is suitable for long-term investing, dividend collection, and capital growth. Typical fees at Irish-friendly brokers include a fixed commission per order—often around $5 USD (EUR equivalent), plus a possible small currency conversion fee.

Example

Suppose the SCHD share price is $26.19. With a stake of $1,000 (approx. €920), you can purchase about 38 shares (after deducting a $5 commission).
- Gain scenario: If the price rises by 10%, your 38 shares are now worth $1,100.
- Result: That’s a $100 gross gain—a 10% return on your investment, not counting dividends.

Trading via CFD

CFD trading lets you speculate on the price movements of SCHD without owning the ETF’s underlying shares. CFDs are traded on margin, allowing leverage—meaning you can amplify your exposure. Standard fees include the spread (the difference between buying and selling prices) and daily overnight financing costs if positions are held open. CFDs suit active traders seeking to benefit from short-term market moves.

Example

You open a CFD position on SCHD with $1,000 at 5x leverage, giving you $5,000 of market exposure.
- Gain scenario: If SCHD rises by 8%, your position delivers a 40% return (8% growth × 5 leverage).
- Result: You’d make a $400 gain from your $1,000 deposit (excluding fees).

Final Advice

It’s essential to compare broker fees, currency conversion rates, and trading conditions before investing. Each platform offers different advantages—from lower commission rates to access to U.S. markets or competitive margin terms. Your choice between spot buying and CFD trading depends on your investment goals—whether you want to build wealth and earn dividends over the long term or trade more dynamically on price movements. To support your decision, a comprehensive broker comparison is provided below on this page.

Our 7 tips for buying Schwab U.S. Dividend Equity ETF stock

The latest news about the Schwab U.S. Dividend Equity ETF

Schwab U.S. Dividend Equity ETF delivered a 22% dividend growth in 2025 following its annual portfolio reconstitution. The latest distribution in March 2025 rose to $0.2488 per share, up significantly compared to the same quarter in 2024, reflecting the fund’s proactive portfolio adjustment; 19.2% of the holdings were rotated, and higher-quality dividend-paying companies were added. This positive trajectory in income distribution is particularly attractive to Irish investors seeking US dollar-denominated assets that offer both yield stability and growth potential, especially in periods of economic uncertainty or low eurozone interest rates.

SCHD maintains a robust yield of nearly 4%, far exceeding the S&P 500 average and offering appealing income for EU-based investors. With a 30-day SEC yield of 3.94% and a trailing twelve-month payout yield over 4%, the ETF significantly outpaces broad equity benchmarks, which typically yield closer to 1.4%. This competitive yield, coupled with a low total expense ratio (0.06%), makes SCHD an efficient and potentially tax-advantaged instrument for Irish institutions and private clients looking to diversify globally while capturing reliable dividend streams.

Technical momentum indicators turned constructive, with short-term signals now favoring purchasing activity in the ETF. The Relative Strength Index is neutral around 51, but both the MACD and short-term momentum figures signal buys, and the current price sits just above the 20-day moving average. While longer-term moving averages remain below current levels and YTD performance is negative, these short-term technical improvements suggest a potential inflection point for new inflows, particularly given the fund’s attractive valuation metrics—its price/earnings ratio (15.81) offers a measure of downside protection compared to richly valued sectors elsewhere.

SCHD’s sector allocation—heavy in energy, staples, and healthcare—aligns with low-correlation, defensive strategies favored by Irish allocators amid global macro risks. Roughly 56% of assets are concentrated in energy, consumer staples, and health care, sectors historically less sensitive to economic shocks. These allocations are highly relevant for professional portfolio managers in Ireland seeking global diversification, capital preservation, and reduced portfolio beta, as SCHD’s 5-year beta spans 0.79 to 1.00, lower than equity markets overall.

Regulatory and access considerations for Irish investors remain favorable, with UCITS substitutes available and US ETFs like SCHD tradable on major Irish brokerage platforms. Although SCHD is not a UCITS vehicle (thus not marketed directly to retail investors in the EU), it’s widely accessed by Irish professionals through international brokerage accounts, and the ETF’s focus on “qualified dividends” ensures optimal US tax treatment. Additionally, the ETF’s 2024 3-for-1 stock split has improved accessibility per share, benefiting international investors managing currency exposure and scale of entry positions.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.