In this comparison, SCHD led on current yield and 2025 growth in distributions per share. DGRO held more stocks with less weight in its top ten. The total-return leader changed with the period measured.
Both ETFs pay quarterly distributions, and the amount changes from quarter to quarter.
DGRO vs SCHD at a glance
| Feature | DGRO | SCHD |
|---|---|---|
| Fund name | iShares Core Dividend Growth ETF | Schwab U.S. Dividend Equity ETF |
| Manager | BlackRock / iShares | Schwab Asset Management |
| Inception | 2014-06-10 | 2011-10-20 |
| Index | Morningstar US Dividend Growth Index | Dow Jones U.S. Dividend 100 Index |
| Annual expense ratio | 0.08% | 0.06% |
| Holdings | 389 | 102 |
| Distributions | Quarterly · variable | Quarterly · variable |
| Trailing 12-month yield | 1.87%2026-08-31 | 3.00%2026-08-31 |
| 30-day SEC yield | 1.95%2026-08-31 | 3.33%2026-09-24 |
Sources: iShares DGRO and Schwab SCHD. SEC yield annualizes standardized net investment income over 30 days; it differs from trailing distribution yield. The SEC figures also have different dates and are not used for a direct ranking.
Yield: income from the same $10,000
On the August 2026 trailing yields, the illustrative pre-tax income from $10,000 is $113 a year higher with SCHD. That difference matters more if you plan to spend the payments soon.
2026-08-31 · Manager-reported trailing 12-month yield
A higher starting yield does not establish faster future dividend growth. Both bars start at zero.
- Investment and currency
- $10,000 in each fund · USD
- Method
- Investment × trailing 12-month yield
- Tax and currency
- Pre-tax · no currency conversion
- Excluded
- Actual share count, trading costs and changing payments
The Korean article uses a separate round-number KRW example. Actual payments depend on shares held, purchase price and taxes; currency movements matter when converting the cash. Quarterly payments are not equal.
Yield can rise when the share price falls even if the payment stays flat. Read the payment history alongside the yield.
Index selection also affects yield
| Stage | DGRO index | SCHD index |
|---|---|---|
| Initial screens | Excludes REITs; requires a current dividend and five consecutive years of annual dividend growth | Excludes REITs; requires ten consecutive years of dividend payments (not annual increases), float-adjusted market value of at least $500 million and three-month average daily value traded of at least $2 million |
| Yield and finances | Excludes the highest-yielding 10%; requires positive forward 12-month consensus earnings and a forward payout ratio below 75% | First retains the higher-yielding half by indicated annual dividend yield, excluding special dividends |
| Final selection | Includes qualifying stocks; growth can be shown by an increase in either annualized indicated dividends or the trailing 12-month total | Sums ranks for free cash flow to total debt, return on equity (ROE), indicated yield and five-year dividend growth; selects 100 stocks, with a top-200 retention buffer for existing members |
| Weighting | Proportional to expected total dividends over the next 12 months, capped at 3% per company | Float-adjusted market-cap weighting, capped at 4% per stock and 25% per sector |
Sources: Morningstar Dividend Growth Indexes rules (August 2025) and S&P Dow Jones Dividend Indices methodology (August 2026). The weight caps in the table apply when the indexes rebalance. Morningstar's 3% company cap took effect December 22, 2025.
The selection rules tell much of the story. SCHD first screens for the higher-yielding half and chooses about 100 stocks. DGRO excludes the highest-yielding tenth and holds a broader set of dividend growers. This is a useful starting point for understanding the current yield gap.
Dividend growth: compare annual distributions per share
Use split-adjusted annual distributions per share, rather than total cash received in an account. Buying more shares or reinvesting payments increases account income without necessarily increasing the fund’s payment per share.
2015 = 100 · Annual distributions per share · Split adjusted · No reinvestment · Axis: 0–300
The index measures growth, not yield, account value or dollars received on equal investments. Select a year to inspect its index and annual USD payment per share.
| Measure | DGRO | SCHD |
|---|---|---|
| 2015 total | 0.64729 USD | 0.38220 USD |
| 2016 total | 0.65659 USD | 0.41933 USD |
| 2017 total | 0.70547 USD | 0.44857 USD |
| 2018 total | 0.81030 USD | 0.47977 USD |
| 2019 total | 0.93062 USD | 0.57473 USD |
| 2020 total | 1.02880 USD | 0.67613 USD |
| 2021 total | 1.07176 USD | 0.74967 USD |
| 2022 total | 1.16794 USD | 0.85383 USD |
| 2023 total | 1.31595 USD | 0.88600 USD |
| 2024 total | 1.38509 USD | 0.99437 USD |
| 2025 total | 1.45064 USD | 1.04760 USD |
| 2024–2025 growth | 4.73% | 5.35% |
| 2022–2025 3-year CAGR | 7.49% | 7.06% |
| 2020–2025 5-year CAGR | 7.11% | 9.15% |
| 2015–2025 10-year CAGR | 8.40% | 10.61% |
Annual distributions per share are summed by payment date. DGRO uses iShares Total Distribution records; SCHD uses Schwab payment records and a Schwab-authored 2015–2016 distribution sheet hosted by a third party. SCHD payments before its October 2024 split are adjusted three for one.
SCHD's payment per share grew faster from 2024 to 2025. DGRO led on three-year CAGR, while SCHD led on five- and ten-year CAGR. The dividend-growth ranking changes with the period chosen.
Dividend growth and split calculation
All periods end in 2025. One-year growth compares the 2025 and 2024 totals. CAGR is the compound annual growth rate from the starting year's distribution per share to 2025. DGRO's incomplete 2014 launch year and unfinished 2026 are excluded from annual comparisons. We include DGRO's extra 2015 payment and divide only SCHD's pre-October 2024 payments by three. Displayed totals are rounded to five decimal places; growth rates use unrounded totals and display two decimals.
A fund's payment per share also reflects changes in holdings, portfolio weights and payment timing, beyond dividend increases at its underlying companies.
Annualized total return with distributions reinvested
Total return includes price changes and reinvested distributions. The three-, five- and ten-year figures below are compound annual returns through June 30, 2026.
2026-06-30 · Annualized NAV total return · USD · Distributions reinvested
Trailing 1-year return
2025-06-30 → 2026-06-30
Trailing 3-year annualized return
2023-06-30 → 2026-06-30
Trailing 5-year annualized return
2021-06-30 → 2026-06-30
Trailing 10-year annualized return
2016-06-30 → 2026-06-30
The 1-year figure is the return over those 12 months. The 3-, 5- and 10-year figures are compound annual returns (CAGR), not cumulative gains over the full period or returns for individual calendar years. Total return includes price changes and reinvested distributions.
| Period | DGRO | SCHD |
|---|---|---|
| Trailing 1-year return | 21.00% | 24.08% |
| Trailing 3-year annualized return | 16.38% | 13.52% |
| Trailing 5-year annualized return | 11.02% | 8.51% |
| Trailing 10-year annualized return | 13.38% | 12.37% |
Sources: quarterly performance tables on the iShares and Schwab product pages above. Fund expenses are reflected; personal taxes, trading costs and exchange-rate effects are excluded. Multi-year figures are compound annual returns, not cumulative gains.
SCHD led over the latest year; DGRO led over three, five and ten years. Taking distributions as cash would produce a different account result from the reinvested returns shown here.
Choosing between diversification and current income
The holdings show whether the difference in stock counts also appears in portfolio weights.
| Measure | DGRO | SCHD |
|---|---|---|
| Stock holdings | 389 | 98 |
| Top 10 stock weights | 27.28% | 41.47% |
| Largest stock | Apple 3.16% | Qualcomm 4.80% |
| Largest sector | Financials 19.93% | Consumer Staples 19.95% |
Holdings sources and comparison rules
Sources: iShares DGRO holdings CSV and Schwab SCHD holdings CSV. We renormalize DGRO stock market values and SCHD disclosed stock weights separately to 100%. Cash, money market holdings and futures are excluded; separate share classes count as separate stocks. Shared stocks are the intersection of stock tickers in the two files. Both managers identify their sector breakdowns with GICS (BlackRock, Schwab). SCHD’s 102 holdings in the earlier table include 98 stocks, two cash or money market entries and two futures.
DGRO held more stocks with less weight in its top ten. Each fund's largest sector was close to 20% of its stock portfolio. On this holdings date they also shared 32 stock tickers; buying both duplicates exposure to those companies.
SCHD paid more current income. Its distributions per share also grew faster in 2025, though DGRO led on three-year distribution growth. DGRO had less concentration in its largest holdings and higher three-, five- and ten-year reinvested total returns at the same endpoint.
Choose the dividend investment you can maintain
I would first examine SCHD when cash income is the priority, and DGRO when broader dividend-stock ownership interests me. I believe we should invest to keep building assets, then choose the fund by studying both its income and growth.
Backtest the same investment dates and change the reinvestment setting. Examine returns and drawdowns alongside the holdings when choosing what you can keep owning. Compare DGRO and SCHD in a backtest
Explore your dividend growth assumptions
Vary starting yield and dividend growth separately to see the difference for your own investment amount.
Open dividend reinvestment calculatorThis article presents the author’s opinion and historical data. Dividend payments and investment values change over time.