If you want to understand the Schwab U.S. Dividend Equity ETF (SCHD), the best place to start is its holdings. SCHD doesn’t just pick stocks with high yields — it screens for companies with the financial quality to keep paying and growing those dividends for years to come.
In this guide, we rank all 25 top SCHD holdings by portfolio weight from #25 to #1, with a brief breakdown of each company: what it does, why it made the cut, and how much of the fund it represents. By the time you reach #1, you’ll have a clear picture of what makes SCHD one of the most respected dividend ETFs in the market.
Quick context: SCHD typically holds around 100 large, dividend-paying U.S. stocks. The top 25 by weight account for roughly 60–65% of the entire fund. Weights shift slightly after each quarterly rebalance.
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What Is SCHD and How Does It Pick Stocks?
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects stocks based on four financial quality criteria: cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate. A company must score well on all four measures to earn a spot in the fund.
This methodology filters out the so-called “dividend traps” — companies paying artificially high yields that are unsustainable. What remains is a portfolio of businesses with real financial strength backing their payouts.
With that context established, let’s count down all 25 top SCHD holdings, starting from the lightest weight and building toward the fund’s most dominant position.
Top 25 SCHD Holdings Ranked by Weight
#25 — Archer-Daniels-Midland Company (ADM)
| ADM | Consumer Staples — Agricultural Commodities | Weight: ~1.1–1.3% |
Archer-Daniels-Midland is one of the world’s largest agricultural processors and food ingredient companies. It sits at the lighter end of SCHD’s top 25, but its inclusion reflects the fund’s appreciation for businesses tied to essential global supply chains.
ADM processes crops like corn, wheat, and soybeans into ingredients used across the food, beverage, and biofuel industries. Its global scale and commodity exposure make it a reliable, if cyclical, dividend payer. The company has maintained its dividend through multiple commodity cycles, demonstrating the kind of resilience SCHD’s screening process values.
#24 — Emerson Electric Co. (EMR)
| EMR | Industrials — Automation & Technology | Weight: ~1.4–1.9% |
Emerson Electric is a 130-year-old industrial technology company specializing in automation solutions for manufacturing, energy, and life sciences industries. It’s a textbook SCHD holding: a mature, cash-generative business with a long dividend history.
Emerson has paid uninterrupted dividends for well over four decades and has consistently grown its payout. Its pivot toward high-margin software and automation technology gives it stronger long-term earnings potential than traditional industrial peers.
#23 — W.W. Grainger Inc. (GWW)
| GWW | Industrials — Industrial Distribution | Weight: ~1.5–2.0% |
W.W. Grainger is the leading distributor of maintenance, repair, and operations (MRO) products in North America. Think of it as the Amazon of industrial supplies — businesses rely on Grainger for everything from safety equipment to power tools to janitorial products.
Grainger’s business model generates consistent cash flows because its customers — manufacturers, contractors, governments — need its products regardless of economic conditions. The company has grown its dividend for over 50 consecutive years, firmly planting it in Dividend King territory.
#22 — International Business Machines Corp. (IBM)
| IBM | Technology — IT Services & Cloud | Weight: ~1.7–2.2% |
IBM has evolved dramatically from its mainframe computing roots into a hybrid cloud and AI services company. Its acquisition of Red Hat in 2019 marked a turning point, repositioning the business around enterprise cloud infrastructure and open-source technology.
For dividend investors, IBM’s appeal is straightforward: it has paid and grown dividends for decades, and its enterprise IT services generate the kind of recurring, contract-based revenue that supports reliable payouts. SCHD’s inclusion of IBM signals confidence in its cash flow stability over high-growth optics.
#21 — Caterpillar Inc. (CAT)
| CAT | Industrials — Construction & Mining Equipment | Weight: ~1.8–2.3% |
Caterpillar is the global leader in construction and mining equipment, with a brand so dominant that its yellow machines are synonymous with heavy industry worldwide. Its engines, turbines, and locomotives power infrastructure projects across every continent.
What makes Caterpillar a standout dividend stock is its ability to generate strong cash flows across economic cycles by leaning into services and aftermarket parts revenue — a more stable income stream than equipment sales alone. CAT has raised its dividend for over 25 consecutive years.
#20 — Walmart Inc. (WMT)
| WMT | Consumer Staples — Discount Retail | Weight: ~2.0–2.4% |
Walmart is the world’s largest retailer by revenue, operating thousands of stores across the US and internationally, along with a rapidly growing e-commerce and advertising business. Its sheer scale gives it pricing power that competitors simply cannot match.
For SCHD, Walmart represents the gold standard of Consumer Staples investing: a business that sells things people buy regardless of economic conditions. Walmart has raised its annual dividend for over 50 consecutive years, making it a Dividend King and a natural fit for the fund’s quality criteria.
#19 — McDonald’s Corporation (MCD)
| MCD | Consumer Discretionary — Quick Service Restaurants | Weight: ~2.2–2.5% |
McDonald’s is one of the most recognized brands on earth, operating or franchising over 40,000 restaurants in more than 100 countries. But here’s what most people miss: McDonald’s is fundamentally a real estate and franchise business. The company owns the land under most of its restaurants and collects royalties from franchisees, creating a highly predictable income stream.
This asset-light model generates enormous free cash flow, which McDonald’s returns to shareholders through dividends and buybacks. It has raised its dividend for over 45 consecutive years — a track record that earns it a consistent presence in SCHD’s portfolio.
#18 — United Parcel Service Inc. (UPS)
| UPS | Industrials — Package Delivery & Logistics | Weight: ~2.4–2.6% |
UPS is one of the world’s largest package delivery companies, moving millions of parcels daily across a vast logistics network spanning air, ground, and international freight. E-commerce has structurally increased demand for parcel delivery, giving UPS a long-term tailwind.
UPS’s inclusion in SCHD reflects its strong free cash flow generation and commitment to dividend growth. The company went through a period of elevated costs during the pandemic logistics boom but has been focused on efficiency improvements and higher-margin deliveries, supporting its ability to maintain and grow its payout.
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#17 — Bristol-Myers Squibb Company (BMY)
| BMY | Healthcare — Pharmaceuticals | Weight: ~3.1–4.3% |
Bristol-Myers Squibb is a global pharmaceutical company with a strong oncology and cardiovascular drug portfolio. Its blockbuster blood thinner Eliquis and cancer drug Opdivo are among the top-selling drugs in the world.
BMY has faced patent cliff concerns as some of its key drugs approach generic competition, but the company has been actively diversifying its pipeline through acquisitions and internal R&D. For SCHD, BMY’s consistent cash flow generation and attractive dividend yield — one of the higher ones in the fund — make it a valuable income contributor.
#16 — The Home Depot Inc. (HD)
| HD | Consumer Discretionary — Home Improvement Retail | Weight: ~3.3–3.8% |
Home Depot is the world’s largest home improvement retailer, serving both DIY homeowners and professional contractors. Its scale and supply chain give it pricing and inventory advantages that smaller competitors cannot replicate.
Home Depot’s dividend track record is exceptional. The company has raised its payout for over 14 consecutive years, and its free cash flow generation is enormous relative to its capital needs. The long-term structural tailwind of aging US housing stock — which requires ongoing maintenance and renovation — gives Home Depot a durable demand backdrop.
#15 — Altria Group Inc. (MO)
| MO | Consumer Staples — Tobacco | Weight: ~3.5–4.1% |
Altria is the US’s largest tobacco company, best known for the Marlboro cigarette brand. It’s one of the most controversial names in any dividend portfolio — but also one of the most reliable income generators in market history.
Despite declining cigarette volumes, Altria has consistently grown its dividend by raising prices faster than volume falls. The company is also investing in smoke-free products like nicotine pouches (on!) to diversify its revenue base. Its dividend yield is among the highest in the fund, reflecting the market’s pricing of long-term volume risk.
#14 — Lockheed Martin Corporation (LMT)
| LMT | Industrials — Aerospace & Defense | Weight: ~3.6–4.6% |
Lockheed Martin is the world’s largest defense contractor, producing iconic platforms like the F-35 fighter jet, Aegis missile defense systems, and military satellites. Its revenue is underpinned by long-duration government contracts — often spanning decades — which gives it cash flow predictability that few private-sector businesses can match.
In an era of elevated geopolitical tensions and rising global defense budgets, Lockheed Martin’s backlog has grown substantially. For SCHD, LMT checks every box: strong free cash flow, consistent dividend growth, and a business model that is structurally insulated from consumer economic cycles.
#13 — Amgen Inc. (AMGN)
| AMGN | Healthcare — Biotechnology | Weight: ~3.6–4.2% |
Amgen is one of the pioneering biotechnology companies, with a portfolio of blockbuster drugs treating cancer, cardiovascular disease, osteoporosis, and inflammatory conditions. Its drug Repatha (a cholesterol-lowering injection) and its weight-loss pipeline candidate have attracted significant investor attention in recent years.
Amgen generates substantial free cash flow from its established drug portfolio while simultaneously investing in next-generation therapies. For dividend investors, Amgen stands out as a rare biotech that has consistently grown its dividend since initiating one in 2011, at a pace that has significantly outrun inflation.
#12 — Cisco Systems Inc. (CSCO)
| CSCO | Technology — Networking & Cybersecurity | Weight: ~3.3–4.2% |
Cisco is the dominant provider of networking infrastructure — the routers, switches, and security systems that run the internet and corporate networks globally. It is the kind of company that quietly powers the digital world without generating the headlines of consumer-facing tech giants.
Cisco has been successfully transitioning from hardware-centric revenues toward recurring software and subscription services, which produce more predictable cash flows. This shift has strengthened the financial foundation supporting its dividend. Cisco has grown its dividend consistently since initiating it in 2011.
#11 — AbbVie Inc. (ABBV)
| ABBV | Healthcare — Pharmaceuticals & Immunology | Weight: ~3.6–4.4% |
AbbVie was spun off from Abbott Laboratories in 2013 and quickly became one of the most important pharmaceutical companies in the world, built on the immunology drug Humira — which was, for many years, the best-selling drug on the planet.
As Humira faces biosimilar competition, AbbVie has diversified aggressively with Skyrizi and Rinvoq, both of which have exceeded expectations and are on track to more than replace Humira’s revenue. AbbVie is also a Dividend Aristocrat, having raised its payout for over a decade consecutively. It’s one of the highest-yielding stocks in SCHD’s top 25.
#10 — PepsiCo Inc. (PEP)
| PEP | Consumer Staples — Beverages & Snacks | Weight: ~3.4–3.8% |
PepsiCo is far more than a cola company. Its portfolio includes Gatorade, Tropicana, Quaker Oats, Lay’s, Doritos, and dozens of other household food and beverage brands — making it one of the most diversified consumer staples businesses in the world.
PepsiCo’s diversification between beverages and snacks gives it more revenue stability than pure beverage companies. It has raised its dividend for over 50 consecutive years, making it a Dividend King. For SCHD, PepsiCo represents exactly the kind of brand-moat, steady-cash-flow business the fund’s methodology is designed to capture.
#9 — Procter & Gamble Co. (PG)
| PG | Consumer Staples — Household & Personal Care Products | Weight: ~3.3–3.5% |
Procter & Gamble owns some of the most trusted consumer brands in the world: Tide, Pampers, Gillette, Oral-B, Head & Shoulders, and Febreze, among many others. These are products consumers buy habitually and repeatedly, creating one of the most predictable revenue streams in corporate America.
P&G has increased its dividend for over 65 consecutive years — one of the longest streaks of any company in the world. It is the archetypal Dividend King: a company so embedded in daily consumer routines that its cash flows are virtually recession-proof.
#8 — ConocoPhillips (COP)
| COP | Energy — Exploration & Production | Weight: ~3.6–3.9% |
ConocoPhillips is one of the world’s largest independent oil and gas exploration and production companies. Unlike integrated majors that also refine and retail fuel, ConocoPhillips focuses purely on finding and extracting hydrocarbons — a more leveraged play on commodity prices.
What makes COP a standout dividend name in the energy sector is its low cost of production and its disciplined capital allocation policy. The company has committed to returning a significant portion of its cash flow to shareholders through base dividends, variable dividends, and buybacks — a return-of-capital framework that dividend investors find compelling.
#7 — Verizon Communications Inc. (VZ)
| VZ | Communication Services — Telecom | Weight: ~3.5–3.7% |
Verizon is one of the two dominant wireless carriers in the United States, serving over 140 million wireless connections. Telecom is a capital-intensive business, but it benefits from the most important characteristic dividend investors seek: recurring revenue from subscription-based plans.
Verizon offers one of the highest dividend yields among SCHD’s top holdings, reflecting the market’s concerns about its debt load and slow growth in a saturated wireless market. For income-focused investors, however, its yield and cash flow stability are the attraction. SCHD’s quality screens confirm Verizon still meets the bar for financial sustainability.
#6 — Chevron Corporation (CVX)
| CVX | Energy — Integrated Oil & Gas | Weight: ~3.8–3.9% |
Chevron is one of the world’s largest integrated energy companies, with operations spanning oil and gas exploration, refining, petrochemicals, and retail fuel. Its global scale and integrated business model give it more stability through commodity cycles than pure-play producers.
Chevron has an outstanding dividend track record, having raised its payout for over 35 consecutive years — through oil price crashes, recessions, and a global pandemic. This consistency reflects disciplined capital management and a balance sheet strong enough to sustain dividends even when oil prices fall sharply. It’s one of only a handful of energy companies with Dividend Aristocrat status.
#5 — Merck & Co. Inc. (MRK)
| MRK | Healthcare — Pharmaceuticals | Weight: ~3.8–3.9% |
Merck is one of the world’s largest pharmaceutical companies, and its oncology drug Keytruda — a checkpoint inhibitor used to treat dozens of cancer types — has become one of the best-selling drugs in history. Keytruda’s revenue trajectory has been extraordinary, and the drug is still gaining new regulatory approvals for additional cancer indications.
Beyond Keytruda, Merck has a diversified pipeline in vaccines, animal health, and cardiovascular medicine. Its dividend has grown consistently, and the company’s financial position is strong enough to fund both R&D and shareholder returns simultaneously. For SCHD, Merck represents a high-quality healthcare income play with meaningful long-term earnings growth potential.
#4 — The Coca-Cola Company (KO)
| KO | Consumer Staples — Beverages | Weight: ~3.9–4.0% |
Coca-Cola is arguably the most recognized consumer brand on earth, with products sold in virtually every country in the world. But what makes it special for dividend investors isn’t just the brand — it’s the business model. Coca-Cola doesn’t manufacture most of its beverages directly; it sells concentrated syrups to local bottling partners, collecting royalties with minimal capital intensity.
Warren Buffett’s Berkshire Hathaway has held Coca-Cola for decades. The company has increased its dividend for over 60 consecutive years, making it one of the most decorated Dividend Kings in existence. For SCHD, KO is the quintessential holding: a brand-moat business generating durable, inflation-resistant cash flows.
#3 — UnitedHealth Group Inc. (UNH)
| UNH | Healthcare — Managed Care & Health Services | Weight: ~5.0–5.1% |
UnitedHealth Group is the largest health insurance company in the United States by revenue, and arguably one of the most complex and integrated healthcare businesses in the world. Its two main divisions — UnitedHealthcare (insurance) and Optum (healthcare services and technology) — create a powerful flywheel of healthcare spending flowing through its own ecosystem.
UNH has grown its dividend at a double-digit annual rate for over a decade. Its scale gives it significant negotiating leverage with hospitals and drug companies, which protects margins. For SCHD, UnitedHealth represents a premium healthcare holding: high financial quality, consistent dividend growth, and a business deeply embedded in the structural reality of an aging US population that will need more healthcare, not less.
#2 — Texas Instruments Inc. (TXN)
| TXN | Technology — Analog Semiconductors | Weight: ~5.9–6.1% |
Texas Instruments is the global leader in analog semiconductors — the chips that convert real-world signals (temperature, sound, pressure, motion) into digital data. These components are used in virtually everything: cars, industrial machines, medical devices, home appliances, and consumer electronics.
What makes TXN exceptional for dividend investors is management’s explicit commitment to returning all free cash flow to shareholders over time — a remarkably transparent capital allocation policy. Texas Instruments has grown its dividend for over 20 consecutive years, at an average annual rate well above inflation. Its manufacturing-focused business model, with 300mm wafer fabrication in-house, gives it structural cost advantages competitors cannot easily replicate. SCHD’s #2 position for TXN is no accident.
#1 — Qualcomm Inc. (QCOM)
| QCOM | Technology — Semiconductors & Wireless Technology | Weight: ~6.5–6.7% |
Qualcomm sits at the top of SCHD’s holdings — a fact that surprises many people who associate dividend ETFs only with utilities and consumer staples. But Qualcomm has earned its position through sheer financial quality.
Qualcomm’s Snapdragon processors power the majority of the world’s premium Android smartphones, and its patented 5G modem technology means that virtually every 5G device — regardless of brand — generates licensing royalties for the company. This intellectual property moat creates a high-margin, capital-light revenue stream that funds both aggressive R&D and generous shareholder returns.
Qualcomm has grown its dividend consistently for years, and its free cash flow generation has allowed it to simultaneously invest in automotive chips, AI edge computing, and PC processors — diversification that reduces its dependence on smartphone cycles. At ~6.6% of the fund, Qualcomm is SCHD’s most dominant holding, and by most measures, a worthy one.
How SCHD Compares to Other Popular ETFs
Looking at the top 25 SCHD holdings in full makes one thing clear: this is a fundamentally different fund from the major index ETFs. Here’s a quick comparison:
- SPY (S&P 500 ETF): Dominated by mega-cap tech (Apple, Microsoft, Nvidia). Growth-tilted, low dividend yield. See the top 25 SPY holdings by weight.
- VOO (Vanguard S&P 500 ETF): Almost identical to SPY but with a lower expense ratio. Also heavily growth-weighted. Check the top 25 VOO holdings by weight.
- QQQ (Nasdaq-100 ETF): Pure technology and growth focus. Minimal dividend yield. See the top 25 QQQ holdings by weight.
For investors building a portfolio designed to generate growing income over time, SCHD is one of the most compelling tools available. It can also serve as a stabilizing complement to a growth-heavy index fund portfolio.
Conclusion: What the Countdown Reveals About SCHD
Counting down from #25 to #1 through SCHD’s top holdings reveals something important: this is not a random collection of high-yielding stocks. Every company from Archer-Daniels-Midland at the lighter end to Qualcomm at the summit has been selected for financial discipline, dividend consistency, and cash flow strength.
Whether you’re drawn to the consumer durability of Coca-Cola, the defense contract certainty of Lockheed Martin, the pharma pipeline of AbbVie, or the semiconductor dominance of Qualcomm and Texas Instruments — SCHD packages them all into a single, cost-efficient, quarterly-rebalanced fund.
If income investing is part of your long-term financial plan, SCHD’s top 25 holdings give you a strong foundation to understand what you’re owning and why it works.
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Frequently Asked Questions About SCHD Holdings
What is the #1 holding in SCHD by weight?
As of 2026, Qualcomm (QCOM) is SCHD’s largest holding at approximately 6.5–6.7% of the fund, reflecting its strong free cash flow, 5G licensing revenues, and consistent dividend growth.
How many stocks does SCHD hold in total?
SCHD typically holds around 100 large, dividend-paying U.S. stocks. The top 25 by weight account for roughly 60–65% of the entire portfolio.
How often does SCHD rebalance its holdings?
SCHD rebalances quarterly, which means the holdings list and individual weightings can shift four times per year. Always check the official Schwab ETF page for the most current data.
Why does SCHD hold technology stocks like Qualcomm and Texas Instruments?
SCHD’s selection criteria focus on financial quality — not sector avoidance. Technology companies that have matured past the high-growth phase and generate strong, consistent cash flows can qualify. Both Qualcomm and Texas Instruments have multi-year dividend growth track records and strong cash flow-to-debt ratios.
Is SCHD better than SPY or VOO for dividend investors?
It depends on your goal. SPY and VOO offer broader market exposure with a growth tilt and lower dividend yields. SCHD targets quality dividend payers with higher income and lower tech concentration. Many investors hold both: index funds for growth and SCHD for income.
What sectors are most represented in SCHD’s top 25?
Healthcare and consumer staples are the most represented sectors, followed by technology/communications, industrials, and energy. This mix reflects SCHD’s preference for businesses with durable cash flows and long dividend histories.
What is SCHD’s expense ratio?
SCHD charges an expense ratio of just 0.06%, making it one of the cheapest dividend ETFs available. Low costs compound in your favor over long investment horizons.
Does SCHD pay monthly or quarterly dividends?
SCHD pays dividends quarterly, typically in March, June, September, and December. It has a strong track record of growing its quarterly distributions over time.
Can investors outside the US buy SCHD?
Yes. Platforms like GoTrade allow international investors to buy SCHD and other U.S.-listed ETFs directly from their smartphones, without needing a U.S. brokerage account or address.
How does SCHD screen out ‘dividend traps’?
SCHD’s methodology requires companies to pass four financial quality screens: cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate. Companies paying unsustainably high yields without the financial strength to back them up fail these screens and are excluded.