If You Invest $100 a Month in SCHD, Here's the Passive Income It Could Deliver in 20 Years
Key Points
SCHD offers a great blend of income and dividend growth.
It’s a low-stress way to generate passive income for the next two decades.
- 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the market's most popular dividend-focused exchange-traded funds (ETFs). It passively tracks the Dow Jones U.S. Dividend 100 Index, and it charges a low expense ratio of 0.06%.
SCHD pays a trailing yield of 3.13%. Its top holdings include Abbott Laboratories, Amgen, Merck, and Coca-Cola. Since its launch on Oct. 20, 2011, it delivered a total return of 562%.
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How much income could it generate over the next 20 years?
Past performance doesn't guarantee future gains, but putting $100 a month into SCHD over the next 20 years is still a simple, low-stress way to grow your retirement portfolio.
If SCHD matches its historical growth rate of 10% every year for the next 20 years, the $24,000 you had invested over those 240 months (with reinvested dividends at 3.5%) would grow to nearly $76,000.
If you didn't reinvest those dividends, the value of your portfolio would only grow to about $49,000 -- but you would have collected about $15,000 in dividends during those two decades. That combined value of $64,000 would be lower than your total return with reinvested dividends, but you would have a lot more liquidity to cover your everyday expenses.
Should you buy stock in Schwab U.S. Dividend Equity ETF right now?
Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:
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*Stock Advisor returns as of August 17, 2026.
Leo Sun has positions in Coca-Cola. The Motley Fool has positions in and recommends Abbott Laboratories, Amgen, and Merck. The Motley Fool has a disclosure policy.
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