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%. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Image source: Getty Images. 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: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960 !* Now, it’s worth noting Stock Advisor’s total average return is 981 % — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *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 .

It’s a low-stress way to generate passive income for the next two decades.

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%.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

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.