Disclaimer: The following is for informational purposes only and not financial advice. Always do your own due diligence. I am not a licensed advisor.

When Does SCHD Pay Dividends?

If you’re an investor seeking reliable, consistent dividend income, you might have come across the Schwab U.S. Dividend Equity ETF, also known as SCHD. With a reputation for solid returns and a commitment to high-quality, dividend-paying companies, SCHD has become a staple in the portfolios of many dividend-focused investors. But if you’re considering investing in SCHD, one key question likely stands out: When does SCHD pay dividends?

In this article, we’ll dive into SCHD’s dividend schedule, explaining how often it pays dividends, how you can use this information to your advantage, and why long-term investors love this ETF. Whether you’re new to dividend investing or are looking to optimize your strategy, understanding SCHD’s payment schedule can help you make informed decisions and plan for the future.

Understanding the SCHD Dividend Schedule

SCHD pays dividends every quarter, which means you can expect four dividend payments each year. For many investors, this predictability is key in creating a reliable passive income stream. By receiving quarterly dividends, you get a regular cash flow that you can use to reinvest, cover expenses, or save for the future.

Here’s a breakdown of the key dates you need to know when it comes to SCHD’s dividend payments:

• Ex-Dividend Date: This is the date by which you need to own shares of SCHD to qualify for the upcoming dividend. Typically, the ex-dividend date occurs about a week before the actual pay date. If you purchase shares on or after this date, you won’t be eligible for that quarter’s dividend.
• Record Date: This is the date on which SCHD will check its records to determine which shareholders are eligible for the dividend. The record date often aligns with the ex-dividend date.
• Pay Date: The pay date is the day when the actual dividend is distributed to shareholders. For example, the most recent pay date for SCHD was March 31, 2025, with the ex-dividend date occurring on March 26, 2025.

By tracking these dates, you can plan your investment strategy effectively and ensure you don’t miss out on a dividend payment.

How Much Does SCHD Pay?

At the time of writing, SCHD offers a dividend yield of approximately 3.7%. This yield is based on the ETF’s current price of around $27.5 per share. For each share of SCHD you own, you can expect to receive around $12 per year in dividends.

So, how does this translate into actual payments for shareholders?

Let’s say you own 2,000 shares of SCHD. With a dividend yield of 3.7%, your projected annual dividend income would be about $2,040. This payout is distributed in four quarterly payments, meaning you’d receive around $510 every quarter. This might not replace a full-time income, but it can certainly help cover living expenses or give you a bit of extra cash flow each year.

If you reinvest these dividends, the power of compounding can lead to more shares, which means more dividends next year. This snowball effect is one of the biggest advantages of dividend investing. If you’re looking for more information on why SCHD is such a popular choice for dividend investors, check out our detailed guide on  SCHD reconstitution 2025 to dives deep into SCHD’s performance, its dividend growth, and how it stands out in the world of high-quality dividend ETFs.

The Power of Reinvestment

Now, what if you choose to reinvest your dividends rather than take them as cash? This can be a game-changer for long-term investors. When you reinvest your dividends, you use the cash payments to purchase more SCHD shares. These additional shares will, in turn, generate even more dividends in the future.

Let’s take a look at how this plays out:

• You start with 2,000 shares of SCHD.
• Each quarter, you receive $510 in dividends.
• Rather than spending that money, you reinvest it to buy more shares at the current price.

For instance, if SCHD is priced at $27.5 per share, each quarterly dividend will allow you to purchase around 18 new shares. By the end of the year, you could have an additional 70 or 75 shares in your portfolio—all without adding a single extra dollar of your own.

This is what’s known as compounding, and it’s one of the most powerful ways to grow your investment without having to invest more money.

Dividend Growth: A Long-Term Advantage

One of the biggest reasons investors choose SCHD is its history of dividend growth. Over the last decade, SCHD’s dividends have grown by an average of 12% per year. This means that not only will your dividend payments increase as you accumulate more shares, but the payout per share is also likely to rise over time.

If this trend continues, your 2,000 shares could start paying you $2,200 or more in dividends next year—without you having to invest any additional money. This growth is crucial for keeping up with inflation and ensuring that your passive income stream remains strong over time.

Why Choose SCHD?

SCHD isn’t just a solid choice for its attractive dividend yield and growth potential—it’s also known for its low expense ratio of just 0.06%. Compared to many other ETFs, this is exceptionally low, meaning more of your money goes directly into your investment rather than being eaten up by management fees.

Additionally, SCHD focuses on investing in companies with strong fundamentals and a consistent history of paying and growing dividends. This makes SCHD a great option for investors looking for a stable, long-term growth strategy that doesn’t rely on high-risk or speculative investments.  If you want to know about the worth of SCHD in 2025  then you can read our detailed article of ” SCHD dead or ultimate dividend machine”.

Conclusion

Understanding when SCHD pays dividends is crucial for any investor seeking to establish a consistent income stream. By tracking the X-dividend, record, and pay dates, you can better plan your investments and budget for future income. Whether you’re reinvesting your dividends or taking them as cash, SCHD offers a solid and reliable foundation for building long-term wealth. 

With its quarterly payments, solid dividend yield, and history of growth, SCHD is an excellent choice for those looking to invest in high-quality companies that prioritize shareholder returns. As always, it’s important to remember that investing in any ETF, including SCHD, carries some level of risk. The dividend payments are not guaranteed and could fluctuate based on the performance of the underlying companies and market conditions. However, for those seeking a balanced approach to passive income, SCHD’s consistency and long-term potential make it a compelling option.