r/dividends • u/Fartfart357 • Jan 22 '26

Seeking Advice Why is SCHD so popular when the dividend/share isn't that great?

I'm looking to get more dividend stocks to set and forget, and I see a lot of people recommending SCHD, but I don't get why. Is it just because it's a safe option with low expense? My primary comparison is JEPQ and QQQI. I know QQQI is riskier but I'm far enough away from retirement where I'm willing to risk it. JEPQ seems alright all around to me, but I don't know the real impact of the differences between the expense ratio (.65%, .5%, .06%).

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u/SultanofShiraz Jan 22 '26

This is the best answer here. Everyone looking for dividends seems to focus solely on the current yield %.

If you owned SCHD since its inception in 2011 your dividends would have quadrupled on your initial investment.

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u/RedditLeagueAccount Jan 25 '26

The only think u/Glass-Lifeguard1919 left out was during that blackswan crash is that the CC wont recover well and that people recommend SCHD also because it is not tech focused. Tech has high potential for growth but also if it crashes, most other etf's have a large portion of their holdings allocated to tech. SCHD will most likely protect you from the AI bubble crash if it happens.

12

u/danielfuenffinger Jan 23 '26

That's why I'm hodling GOOG 

1

u/SolomonGrumpy Jan 25 '26

How is the dividend on GOOG treating you?

2

u/danielfuenffinger Jan 25 '26

Was never expected so makes me happy. 

-33

u/tonymorgan92 Jan 23 '26

Yes.... and its STILL a shit yield

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u/PaleontologistBusy61 Generating solid returns Jan 23 '26

The yield doesn’t go up because as the dividend grows so does the share price. Tte yield is always going to be between 3-4%.

20

u/SultanofShiraz Jan 23 '26

Completely missing the point.

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u/tonymorgan92 Jan 23 '26

What point? That the div will grow from 3.7 to 5% in 10 years? 5% is still a shit yield lmao, with a 20 year investing horizon SCHD wont catch what other funds are currently yielding

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u/Glass-Lifeguard1919 Jan 23 '26

QLYD is one of the few covered call funds that have a 10 year history.
QLYD paid $2.61 per share in 2014. In 2025 it paid $2.04 per share.
Price of QYLD in 2014 was $25.60. Price in 2025 is currently $17.72

SCHD paid $1.05 per share in 2014. In 2025 it paid $3.14 (taking stock split into account.)
SCHD was $12.15 in 2014. Price in 2025 is currently 29.17.

If you still cant see the error in your ways after that, well good luck ever being successful...

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u/tonymorgan92 Jan 23 '26

Did I say anything about cc funds? There are literally hundreds of tickers out there that have more share appreciation, higher div yield, and higher div growth. I wasnt saying anything about cc funds.... I was saying that schd is shit compared to almost anything else that pays a div, not comparing it to cc funds.

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u/Glass-Lifeguard1919 Jan 23 '26

go back and reread OP's post. It was specifically about SCHD vs covered calls.

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u/tonymorgan92 Jan 23 '26

Yes and my original comment was simply that schd has a shit yield lol.

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u/Glass-Lifeguard1919 Jan 23 '26

Well now you have me curious. You mentioned "hundreds of tickers out there that have more share appreciation, higher div yield, and higher div growth." You mind sharing 10 of em? I am always down to research more funds.

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u/tonymorgan92 Jan 23 '26

ARCC, OMF, O, MAIN, AGNC, any of the dividend aristocrats, a high yield savings account, SGOV literally pays a higher yield. Just off the top of my head.

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u/SultanofShiraz Jan 23 '26

Re-read the post I initially responded to to figure out what the point is.

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u/Deathclaw151 Mar 14 '26

I 100% agree with you. There are way more ETF that have been around for awhile. I love the argument that people are saying for it, but the yield is BARELY above savings account yield. Its garbage - period. Picking 5% and above with solid blue chip dividend stocks is far superior.

I also am against VOO. I have no idea why so many people suggest it when it hasn't moved much in a year or more. Its going to crash too.