DGRO vs SCHD: Which Dividend Growth ETF?
TL;DR
Both focus on dividend growth, but DGRO casts a wider net (400+ holdings vs SCHD's 100) and includes more tech exposure. SCHD has higher yield (~3.4% vs ~2.2%) and faster historical dividend growth. DGRO has delivered stronger total returns recently due to tech weighting. They're more complementary than competitive.
Strategy Differences
SCHD screens for quality first: 10+ years of consecutive dividends, then filters by cash flow, ROE, yield, and growth. Concentrated. No tech.
DGRO requires 5+ years of dividend growth (lower bar), screens for payout ratio sustainability, and weights by dividend dollars paid. Broader. Includes technology, with companies like Apple and Microsoft that have grown dividends rapidly but don't have the 10-year track record SCHD requires.
| Metric | SCHD | DGRO |
|---|---|---|
| Yield | ~3.4% | ~2.2% |
| Expense Ratio | 0.06% | 0.08% |
| Holdings | ~100 | ~400+ |
| Tech Exposure | Minimal | ~18% |
| AUM | ~$86B | ~$30B |
| Min Dividend History | 10 years | 5 years |
Who Wins?
Neither. They serve different roles. SCHD is the income anchor: higher yield, proven growers, concentrated quality. DGRO is the growth-oriented dividend play: broader, more tech, lower yield but higher total return potential.
Many investors hold both. The ~35% overlap means you get SCHD's quality core plus DGRO's growth periphery.
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This article is for educational and informational purposes only. It does not constitute financial advice.
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