SCHD vs DGRO: Dividend Growth Comparison

Two leading dividend growth ETFs compared side-by-side. Which strategy delivers better returns for dividend investors?

SCHD

SCHD

Schwab U.S. Dividend Equity ETF

3.27%
Dividend Yield
0.06%
Expense Ratio
11.2%
5-Year Return
104
Holdings

SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality U.S. companies with a history of paying dividends. Requires 10+ years of consecutive dividend payments and screens for financial health.

Dividend Growth Quality Focus Large-Cap Value Low-Cost
DGRO

DGRO

iShares Core Dividend Growth ETF

2.40%
Dividend Yield
0.08%
Expense Ratio
10.5%
5-Year Return
434
Holdings

DGRO tracks the Morningstar US Dividend Growth Index, investing in U.S. companies with a history of growing dividends. Requires 5+ years of consecutive dividend growth and screens for payout ratio sustainability.

Dividend Growth Broad Diversification Large-Cap Growth Focus Low-Cost

Key Metrics Comparison

Metric SCHD DGRO Winner
Dividend Yield 3.27% 2.40% SCHD (+1.06%)
Expense Ratio 0.06% 0.08% SCHD
5-Year Annual Return 11.2% 10.5% SCHD (+0.7%)
Dividend Growth (5Y) 8.5% 7.2% SCHD (+1.3%)
Number of Holdings 104 434 DGRO
Assets Under Management $95.2B $24.5B SCHD
P/E Ratio 15.2 17.8 SCHD
Beta (5-Year) 0.85 0.92 SCHD

Performance Comparison

SCHD Performance

SCHD has outperformed DGRO over most time periods due to its quality focus and higher dividend yield.

11.2%
5-Year Return
12.8%
3-Year Return
8.5%
Dividend Growth
0.85
Beta (Volatility)

DGRO Performance

DGRO offers solid performance with better diversification and focus on dividend growth consistency.

10.5%
5-Year Return
11.2%
3-Year Return
7.2%
Dividend Growth
0.92
Beta (Volatility)

Dividend Analysis

SCHD Dividend Strategy

Focuses on companies with 10+ years of consecutive dividend payments. Higher current yield with quality screens.

Current Yield 3.27%
5-Year Div Growth 8.5%
Payout Ratio 48%
Years Required 10+

DGRO Dividend Strategy

Focuses on companies with 5+ years of dividend growth. Lower current yield but emphasis on growth.

Current Yield 2.40%
5-Year Div Growth 7.2%
Payout Ratio 42%
Years Required 5+

Sector Allocation

SCHD Sectors

Healthcare 18.5%
Financials 15.2%
Information Technology 14.8%
Consumer Staples 13.2%
Industrials 12.5%
Energy 8.2%

DGRO Sectors

Information Technology 19.8%
Financials 18.5%
Healthcare 15.2%
Industrials 12.8%
Consumer Staples 11.5%
Consumer Discretionary 9.2%

Top 5 Holdings

SCHD Top Holdings

Broadcom Inc. 4.8%
AbbVie Inc. 4.5%
Amgen Inc. 4.3%
Home Depot Inc. 4.2%
Texas Instruments 4.1%

DGRO Top Holdings

Microsoft Corp. 4.5%
Apple Inc. 4.2%
Johnson & Johnson 3.8%
Procter & Gamble 3.5%
JPMorgan Chase 3.2%

Investment Recommendation

🏆 Choose SCHD If:

  • You want higher current dividend yield
  • You prefer quality-focused dividend stocks
  • You value lower expense ratio
  • You want better historical performance
  • You prefer lower volatility (lower beta)

🎯 Choose DGRO If:

  • You prioritize maximum diversification
  • You want more technology exposure
  • You prefer broader market exposure
  • You focus on pure dividend growth
  • You want newer dividend growers
Back to All ETF compare

Which should you choose: SCHD vs DGRO?

SCHD
Choose SCHD if you want a low-cost (0.06%) blend of an above-average ~3.27% yield and a strong dividend-growth record from screened, quality U.S. companies.
DGRO
Choose DGRO if you want broad, low-cost exposure to companies with consistent dividend-growth histories, with a slightly lower yield than SCHD but more holdings.
Bottom line: Both SCHD and DGRO are dividend-growth funds, so the decision comes down to the finer details — expense ratio, exact holdings, yield and dividend-growth rate. Compare the figures in the table above and pick the one whose costs and composition fit your plan.