Dividend growth investing delivers consistent income and capital appreciation. A $10,000 investment in SCHD from its 2011 launch has grown to approximately $49,000, indicating a 12% annualized return aided by compounding. SCHD’s yield on cost increased from 2.5% in 2011 to over 9.5% in 2025, expected to reach 20% by 2031. This ETF targets high-quality U.S. firms with strong fundamentals. It encourages reinvestment of dividends, building wealth, and providing steady income while reducing the impact of market volatility for investors.
A $10,000 investment in SCHD at its 2011 launch, with dividends reinvested, would be worth approximately $49,000 today, reflecting a 12% annualized return and a dramatic boost from compounding.
Yield on cost for SCHD has risen from 2.5% in 2011 to over 9.5% in 2025, with projections of 20% by 2031, fueling my strategy to reinvest dividends for exponential income growth.
Dividend investing is a powerful strategy for building long-term wealth, offering a steady income stream while mitigating market volatility.
Its focus on firms with robust cash flow, return on equity, and dividend growth makes it a cornerstone for income-focused investors.
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