DGRO vs SCHD: Dividend Growth Showdown
Both are built around dividend growth, but they pick different stocks via very different screens — DGRO's broader, lower-yield approach vs SCHD's concentrated, higher-yield one.
DGRO = ~400 holdings, lower yield, broader mega-cap exposure including some tech. SCHD = ~100 holdings, higher yield, deliberately excludes most mega-cap tech. DGRO has closer S&P 500 correlation; SCHD is more differentiated. On total return they have tracked each other closely; SCHD wins on yield.
Quick stats
| Metric | DGRO | SCHD |
|---|---|---|
| Price | $73.19 | $31.05 |
| TTM yield | 2.01% | 3.40% |
| Real yield (NAV-adj.) | 2.57% | 4.22% |
| NAV change (period) | 27.9% | 24.1% |
| Annualized volatility | 1066.9% | 1181.1% |
| Distribution frequency | quarterly | quarterly |
| Expense ratio | 0.08% | 0.06% |
| Inception | 2014-06-10 | 2011-10-20 |
| AUM | ~$30B | ~$70B |
| 1Y dividend CAGR | 4.7% | -32.1% |
| 3Y dividend CAGR | 7.5% | 7.0% |
| 5Y dividend CAGR | 7.1% | 9.2% |
| 5Y price CAGR | 7.9% | 4.5% |
Strategy & holdings
DGRO tracks the Morningstar US Dividend Growth Index. The screen requires 5 consecutive years of dividend growth (vs SCHD's 10-year payment history) and excludes the top 10% highest-yielding stocks (to avoid dividend traps). SCHD's screen is more quality-driven — it uses cash flow to debt and ROE instead of just a growth streak.
Morningstar US Dividend Growth Index — ~400 US stocks with 5+ years of dividend growth. Excludes top decile yielders. Includes some mega-cap tech (Microsoft, Apple). Cap-weighted with caps on concentration.
Dow Jones U.S. Dividend 100 — 10-year dividend history plus quality screens (cash-flow-to-debt, ROE, yield, dividend growth). ~100 holdings. Excludes most mega-cap tech.
DGRO's breadth (~400 holdings vs SCHD's ~100) is the main structural difference. DGRO is closer to a broad-market dividend fund with a growth screen bolted on; SCHD is a concentrated, quality-screened bet on ~100 specific names. DGRO includes Microsoft, JPMorgan, Apple, Johnson & Johnson, Procter & Gamble in its top 10. SCHD's top 10 includes Verizon, Home Depot, Coca-Cola, Pepsi, AbbVie — a very different tilt. In practice DGRO tracks the S&P 500 more closely while SCHD is more genuinely differentiated.
Yield & distributions
SCHD typically yields 50-100 basis points more than DGRO. DGRO's yield is lower because it excludes the top-yielding decile (anti-dividend-trap logic) and includes mega-cap tech that drags down the blended yield. Both pay quarterly. Dividend growth rates have been comparable, with SCHD slightly ahead on 5Y CAGR.
Total return & NAV
Over most 5Y+ windows DGRO and SCHD have produced similar total returns, often within 1-2 percentage points of each other annualized. DGRO tends to outperform when mega-cap tech leads (because it holds Apple and Microsoft), and SCHD tends to outperform when value/defensive stocks lead. Neither is a consistent winner.
Risk & volatility
Both are lower-beta than the S&P 500. DGRO's higher mega-cap tech exposure means slightly higher correlation with the broad market. SCHD's sector tilt (heavy healthcare, staples, financials) gives it a more defensive drawdown profile. 2022 was a good example — SCHD fell less than both DGRO and VOO.
Tax treatment
Both pay ~95%+ qualified dividends, taxed at long-term capital gains rates. Both are excellent for taxable accounts. The tax efficiency story is essentially identical.