SCHD vs DGRO: Which Dividend Growth ETF Fits Your Portfolio?
SCHD and DGRO are the two most popular dividend growth ETFs in the US. SCHD (Schwab) tracks the Dow Jones US Dividend 100 Index, focusing on companies with 10+ years of consecutive dividend payments and strong fundamentals. DGRO (iShares) tracks the Morningstar US Dividend Growth Index, screening for 5+ years of consecutive growth and sustainable payout ratios. Both target quality dividend growers, but differ in methodology and resulting portfolio composition.
Key Differences
- SCHD has a higher dividend yield (~3.5%) vs DGRO (~2.3%) — SCHD is more income-focused
- DGRO holds ~400 stocks vs SCHD's ~100 — broader diversification but less concentrated quality
- SCHD requires 10 years of dividend history; DGRO only 5 — different quality thresholds
- Both have low TER: SCHD 0.06%, DGRO 0.08%
- SCHD is heavier in financials and industrials; DGRO has more tech exposure (includes AAPL, MSFT)
Live Comparison
Interactive comparison with real data. Toggle dividends and tax settings to see the full picture.
Bottom Line
Choose SCHD if you want higher current income and a concentrated portfolio of proven dividend payers. Choose DGRO if you prefer broader diversification and want tech-sector dividend growers in the mix. Many investors hold both for complementary exposure.