SCHD vs RDIV: Ultra Dividend Revenue Showdown

Quality dividend growth vs ultra dividend revenue strategy. Which delivers better risk-adjusted returns with high yield?

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 dividend yield with rigorous quality screens. Requires 10+ years of dividend payments and screens for financial health metrics.

Quality Screens Low-Cost Value Focus Dividend Growth Financial Health
RDIV

RDIV

Invesco S&P Ultra Dividend Revenue ETF

4.85%
Dividend Yield
0.39%
Expense Ratio
9.8%
5-Year Return
60
Holdings

RDIV tracks the S&P 900 Dividend Revenue-Weighted Index, focusing on high dividend yield companies weighted by revenue. Combines high yield with revenue weighting methodology.

Ultra High Yield Revenue Weighted S&P 900 High Income Revenue Focus

Key Metrics Comparison

Metric SCHD RDIV Winner
Dividend Yield 3.27% 4.85% RDIV (+1.39%)
Expense Ratio 0.06% 0.39% SCHD (-0.33%)
5-Year Annual Return 11.2% 9.8% SCHD (+1.4%)
Dividend Growth (5Y) 8.5% 6.2% SCHD (+2.3%)
Number of Holdings 104 60 SCHD
Assets Under Management $95.2B $850M SCHD
P/E Ratio 15.2 14.8 RDIV
Beta (5-Year) 0.85 0.92 SCHD

Performance Comparison

SCHD Performance

Higher total returns with better risk-adjusted performance. Quality-focused approach provides superior dividend growth and lower volatility.

11.2%
5-Year Return
0.85
Beta
3.27%
Yield
8.5%
Div Growth

RDIV Performance

Higher current income with revenue-weighted approach. Ultra high yield focus provides immediate cash flow advantage.

9.8%
5-Year Return
0.92
Beta
4.85%
Yield
6.2%
Div Growth

Strategy Analysis

SCHD Approach

Quality-focused high-yield dividend growth:

  • Minimum 10 years of dividend payments
  • Dividend yield > 2.5% requirement
  • Cash flow to total debt > 50%
  • Return on equity > 15%
  • Market cap > $500 million
  • Focus on financial health and stability
  • Value-oriented, quality focus

RDIV Approach

Ultra dividend revenue-weighted strategy:

  • Selects high dividend yield companies from S&P 900
  • Revenue-weighted methodology
  • Higher weight to companies with more revenue
  • Ultra high yield focus (top yielders)
  • 60 concentrated holdings
  • No quality screens beyond yield and revenue
  • Income generation priority

Quality vs Revenue Weighting Analysis

SCHD focuses on quality high-yield with financial screens (3.27% yield, 11.2% returns) emphasizing sustainable dividends, while RDIV focuses on ultra high yield with revenue weighting (4.85% yield, 9.8% returns) prioritizing immediate income. This represents the trade-off between sustainable quality (SCHD) vs maximum current yield (RDIV).

SCHD Quality Advantage

Better dividend growth: 8.5% vs 6.2%

Lower volatility: Beta 0.85 vs 0.92

Superior total returns: 11.2% vs 9.8%

RDIV Yield Advantage

Higher current income: 4.85% vs 3.27%

Lower P/E ratio: 14.8 vs 15.2

Revenue weighting: Larger companies get more weight

Dividend Analysis

SCHD Dividend Profile

High quality yield with sustainable growth. Focus on financially healthy companies with strong dividend histories.

Current Yield 3.27%
5-Year Growth 8.5%
Payout Ratio 48%
Sustainability High

RDIV Dividend Profile

Ultra high yield with revenue focus. Emphasis on maximum current income from high-yield companies.

Current Yield 4.85%
5-Year Growth 6.2%
Payout Ratio 65%
Sustainability Moderate

Sector Allocation

SCHD Sectors

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

RDIV Sectors

Real Estate 22.3%
Financials 18.8%
Utilities 15.2%
Consumer Staples 12.5%
Energy 10.8%

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%

RDIV Top Holdings

AT&T Inc. 4.8%
Verizon Communications 4.5%
Exxon Mobil Corp. 4.3%
Chevron Corp. 4.2%
Pfizer Inc. 4.1%

Investment Recommendation

🛡️ Choose SCHD If:

  • Quality and sustainability are priorities
  • You want better total returns (11.2% vs 9.8%)
  • Higher dividend growth matters (8.5% vs 6.2%)
  • Lower expenses are important (0.06% vs 0.39%)
  • Financial health screens provide comfort
  • Lower volatility is preferred (beta 0.85 vs 0.92)
  • You prefer broader diversification (104 holdings)

💰 Choose RDIV If:

  • Maximum current income is your primary goal (4.85%)
  • You prefer revenue-weighted methodology
  • Lower P/E valuation appeals to you (14.8 vs 15.2)
  • Real estate and utilities exposure aligns with your view
  • You're comfortable with higher yield but lower growth
  • Concentrated high-yield approach fits your strategy
  • Immediate cash flow is more important than growth
Back to All ETF compare

Which should you choose: SCHD vs RDIV?

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.
RDIV
Choose RDIV if you want high-yield exposure weighted by revenue rather than market cap.
Bottom line: RDIV pays more income today, while SCHD pays less now but has historically grown its dividend faster and screens harder for quality. If current yield matters most, lean RDIV; if a growing, durable income stream matters more, lean SCHD.