This page — “SCHD Holdings Analysis” — is for hands-on investors who'd rather look under the hood than take the fund on faith.
If you prefer a simple, hands-off approach and don't need the underlying detail, a high-level overview will serve you better.
Detailed analysis of SCHD's 104 holdings, sector allocation, concentration risk, and what makes this dividend ETF unique. Updated with latest portfolio data.
SCHD (Schwab U.S. Dividend Equity ETF) holds 104 carefully selected U.S. companies that meet strict dividend criteria. Unlike many dividend ETFs that simply chase high yields, SCHD's methodology focuses on quality, consistency, and financial health.
This deep dive analyzes the current holdings, their characteristics, and what they reveal about SCHD's investment philosophy and risk profile.
SCHD's portfolio is constructed through a systematic screening process that emphasizes:
The top 10 holdings represent approximately 40% of SCHD's portfolio. This concentration in high-quality dividend payers is intentional and reflects the ETF's focus on financially strong companies.
| Rank | Company | Ticker | Weight | Yield | Sector |
|---|---|---|---|---|---|
| 1 | Broadcom Inc. | AVGO | 4.5% | 1.9% | Technology |
| 2 | Verizon Communications | VZ | 4.4% | 6.8% | Communication |
| 3 | Pfizer Inc. | PFE | 4.2% | 6.1% | Healthcare |
| 4 | Merck & Co. | MRK | 4.1% | 2.4% | Healthcare |
| 5 | Texas Instruments | TXN | 4.0% | 3.2% | Technology |
| 6 | PepsiCo Inc. | PEP | 3.9% | 2.9% | Consumer Staples |
| 7 | IBM | IBM | 3.8% | 3.9% | Technology |
| 8 | Coca-Cola | KO | 3.7% | 3.2% | Consumer Staples |
| 9 | Home Depot | HD | 3.6% | 2.5% | Consumer Discretionary |
| 10 | Accenture | ACN | 3.5% | 1.6% | Technology |
SCHD's sector allocation reflects where high-quality dividend payers are found in the U.S. market. Unlike the S&P 500, SCHD has significant sector tilts based on dividend sustainability and growth potential.
While SCHD is diversified across 104 companies, understanding concentration metrics is crucial for risk management:
SCHD follows the Dow Jones U.S. Dividend 100 Index methodology, which uses a multi-factor screening approach:
Start with 2,500 largest U.S. stocks by market capitalization. Exclude REITs, MLPs, and preferred stocks.
Require 10+ consecutive years of dividend payments. This eliminates cyclical companies and those with inconsistent payout histories.
Screen for cash flow to debt ratio, return on equity, dividend yield, and 5-year dividend growth rate. Companies are ranked and scored.
Select top 100 companies by composite score. Weight by market cap with individual position cap of 4.5%.
Full portfolio review each March. Quarterly reviews ensure compliance with methodology and position caps.