14d • ETF discussion
SCHD or DGRO for dividend growth?
This is one of the most common questions I get — and honestly, both are solid. But they're not the same fund.
Here's a quick breakdown:
SCHD (Schwab U.S. Dividend Equity ETF)
- Focuses on high-quality dividend payers with strong fundamentals
- Higher current yield (~3.5–4%)
- More concentrated — top holdings carry more weight
- Historically strong dividend growth + total return combo
- Goes through sector reconstitutions annually (we just saw the 2026 one)
DGRO (iShares Core Dividend Growth ETF)
- Focuses on companies with a history of growing dividends
- Lower current yield (~2–2.5%) but broader diversification
- ~700+ holdings — very spread out
- Tilts slightly more toward growth, lower payout ratio requirement
- Less volatile during drawdowns due to diversification
So which one?
If you want more income now + a tighter, proven quality screen → SCHD
If you want more diversification + a longer dividend growth runway → DGRO
Personally, I hold SCHD as my core Bucket 2 dividend growth position. The quality screen and yield combination is hard to beat for income-focused portfolios. But I'd never fault someone for holding DGRO — or honestly, both.
What do you all hold? SCHD, DGRO, or a mix? Drop it below 👇
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SCHD or DGRO for dividend growth?
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