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Ex-Dividend Date Analysis
Upcoming SCHD Ex-Dividend Dates
| Quarter | Ex-Dividend Date | Payment Date | Est. Amount |
|---|---|---|---|
| Q2 2025 | Jun 25, 2025 | Jun 30, 2025 | $0.27 |
| Q3 2025 | Sep 24, 2025 | Sep 30, 2025 | $0.27 |
| Q4 2025 | Dec 10, 2025 | Dec 16, 2025 | $0.27 |
| Q1 2026 | Mar 25, 2026 | Mar 31, 2026 | $0.28 |
Purchase Timing Recommendation
Optimal Purchase Date: June 24, 2025 (1 day before ex-dividend)
Purchasing right before the ex-dividend date will allow you to capture the upcoming dividend payment while also positioning for potential post-dividend price recovery.
Purchase Timing Impact
Strategy Performance Comparison
| Purchase Strategy | Total Return | Dividend Income |
|---|---|---|
| Buy before ex-dividend | $12,566 | $2,346 |
| Buy on ex-dividend | $12,489 | $2,094 |
| Buy after price stabilization | $12,508 | $2,094 |
| Optimal strategy | $12,566 | $2,346 |
Important Considerations
- Stock price typically drops by approximately the dividend amount on ex-dividend date
- Long-term investors may not benefit significantly from dividend timing strategies
- Transaction costs and taxes can reduce or eliminate potential advantages
- Price movements are influenced by many factors beyond dividends
Understanding SCHD Ex-Dividend Dates
What are Ex-Dividend Dates?
The ex-dividend date (or "ex-date") is the trading date on which a declared dividend is not owed to new buyers of the stock. To receive a declared dividend, investors must own shares of the stock before its ex-dividend date.
Key Dividend Dates for SCHD:
- Declaration Date: When Schwab announces the dividend amount
- Ex-Dividend Date: The first day the stock trades without the dividend
- Record Date: The date Schwab determines which shareholders receive dividends
- Payment Date: When the dividend is actually paid to shareholders
SCHD's Dividend Schedule
SCHD pays dividends quarterly. Ex-dividend dates typically fall in:
- Q1: Late March (around the 26th)
- Q2: Late June (around the 25th)
- Q3: Late September (around the 24th)
- Q4: Early-Mid December (around the 10th)
Understanding Price Behavior Around Ex-Dividend Dates
When a stock goes ex-dividend, its price typically drops by approximately the amount of the dividend. This occurs because the stock is now trading without the right to the upcoming dividend payment.
Price Adjustment Process:
- Before Ex-Date: Price includes the value of upcoming dividend
- On Ex-Date: Price is adjusted downward by dividend amount
- After Ex-Date: Price may recover depending on market conditions
Dividend Capture Strategies
Some investors use a strategy called "dividend capture" to maximize dividend income. This involves:
- Buying shares shortly before the ex-dividend date
- Collecting the dividend
- Potentially selling after the price recovers from the ex-dividend drop
"While dividend capture strategies may seem appealing, they rarely outperform simple buy-and-hold strategies after accounting for transaction costs and taxes. They are most effective in certain market conditions and for tax-advantaged accounts."
SCHD Purchase Timing Strategies
Buy Before Ex-Dividend Date
Purchasing SCHD 1-5 days before the ex-dividend date ensures you'll receive the upcoming dividend payment.
Advantages:
- Immediate dividend income
- Potential for price recovery after ex-dividend drop
- Establishes position for long-term dividend growth
Considerations:
- Price often drops by dividend amount on ex-date
- Potential tax liability for the dividend
- Market timing challenges
Best for: Long-term investors focused on income and those in lower tax brackets
Buy On or After Ex-Dividend Date
Waiting to purchase SCHD on or after the ex-dividend date may allow you to buy at a slightly lower price.
Advantages:
- Potential to buy shares at reduced price
- Avoid immediate tax liability from dividend
- May provide better entry point for capital appreciation
Considerations:
- Miss out on upcoming dividend payment
- Price may rise quickly after ex-date
- Uncertain price movement based on market conditions
Best for: Investors in higher tax brackets or those focused on capital appreciation
Optimizing for Your Situation
The optimal strategy depends on several factors:
Tax Considerations
Investors in higher tax brackets may prefer to minimize dividend income and focus more on capital appreciation. Those in lower brackets may prioritize maximizing dividend capture.
Investment Timeframe
Long-term investors benefit less from timing ex-dividend dates compared to shorter-term investors who may implement dividend capture strategies.
Account Type
Tax-advantaged accounts (IRAs, 401ks) eliminate tax concerns around dividend capture, making pre-ex-dividend purchases potentially more attractive.
Frequently Asked Questions
Does buying before the ex-dividend date actually increase returns?
Not necessarily. While buying before the ex-dividend date ensures you receive the dividend payment, the share price typically drops by approximately the dividend amount on the ex-date. For long-term investors, the timing of purchases around ex-dividend dates has minimal impact on total returns. However, in certain market conditions, prices may recover quickly after the ex-dividend drop, potentially providing a slight advantage to buying before the ex-date.
How much does SCHD's price typically drop on the ex-dividend date?
Theoretically, a stock's price should drop by exactly the dividend amount on the ex-dividend date. For SCHD, with quarterly dividends of around $0.25-0.27 per share, you might expect a price drop of that amount. However, actual price movements on ex-dividend days are influenced by broader market conditions, so the drop may be more or less than the dividend amount. Historical data shows that SCHD's price adjustment on ex-dividend dates is generally consistent with the dividend amount, though market forces can mask or amplify this effect.
Is dividend capture a viable strategy with SCHD?
Dividend capture strategies with SCHD face several challenges. First, transaction costs can erode potential gains. Second, SCHD's price behavior around ex-dividend dates doesn't consistently offer opportunities for quick profits. Third, frequent trading increases tax consequences, especially since short-term holdings are taxed at higher rates. For most investors, a long-term buy-and-hold strategy with SCHD is likely to be more effective than active dividend capture approaches. However, tactical adjustments of purchase timing around known ex-dividend dates can potentially enhance returns slightly for planned purchases.
Are SCHD's ex-dividend dates consistent?
SCHD has maintained a fairly consistent quarterly ex-dividend date pattern. Typically, ex-dividend dates occur in late March, late June, late September, and early-to-mid December. While the exact dates may vary slightly year to year, this pattern has remained relatively stable. The December ex-dividend date is often slightly earlier than the other quarters. Using the calculator on this page can help you track upcoming ex-dividend dates based on historical patterns and announced schedules.
How do taxes affect dividend capture strategies?
Taxes significantly impact dividend capture strategies. While SCHD's dividends are typically qualified and taxed at lower rates (0%, 15%, or 20% depending on your tax bracket), frequent trading required for dividend capture may result in short-term capital gains taxed at higher ordinary income rates. Additionally, dividend payments create immediate tax liabilities unless held in tax-advantaged accounts. For high tax bracket investors, the tax implications may outweigh the benefits of dividend capture. The calculator on this page includes options to factor in tax effects to help make more informed decisions based on your specific situation.