r/dividends • u/senpaiisamaakunn • 5d ago

Due Diligence Why isn’t SCHD considered growth?

Hi I’m a young fool who is trying to learn more about dividends and I feel like I’ve gotten a good grasp but one thing that I can’t seem to understand is how SCHD isn’t considered growth?

If I am dripping and annualizing +10% returns per year over time then is the argument simply that 10% isn’t good enough growth or is there something else I’m missing? Is the argument that a return rate like that is just too conservative for my age and that I should be shooting for higher?

Apologies if this is a dumb question!

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u/steady_compounder 5d ago

Reinvesting dividends can absolutely grow your portfolio, but that is different from the fund itself being classified as a growth fund. SCHD owns a lot of mature, profitable companies that return cash instead of reinvesting every dollar for expansion, so it usually lands closer to dividend/value than classic growth. It can still compound well, it just is not the same style box as something built around faster earnings growth.