SCHD Could Turn $300 Monthly Into $1 Million in 33 Years as Returns Top 30% YTD
Updated
Updated · 24/7 Wall St. · Aug 24
SCHD Could Turn $300 Monthly Into $1 Million in 33 Years as Returns Top 30% YTD
2 articles · Updated · 24/7 Wall St. · Aug 24
Summary
$300 invested monthly in SCHD could grow to $1 million in about 33 years and 9 months at a 10% annual return, with only $121,500 coming from contributions if dividends are reinvested.
A 3%-plus dividend yield and a 0.06% expense ratio support that compounding case, while SCHD has gained more than 30% year to date versus the S&P 500's 13%.
The strategy still carries timing risk: SCHD lagged from 2021 to 2025 when dividend stocks fell out of favor, though reinvested payouts helped investors keep pace with the broader market.
The bullish long-term view rests on U.S. debt topping $40 trillion, which the analysis says makes austerity unlikely and leaves investors facing persistently high yields and above-target inflation.
In that backdrop, SCHD's focus on cash flow, debt levels, return on equity and dividend growth is presented as a way to favor companies that can handle expensive borrowing and keep rewarding shareholders.