11/2/2026
By Karina Hernandez, Senior Research Analyst

The Schwab U.S. Dividend Equity ETF (SCHD), the largest dividend exchange-traded fund (ETF), reached a new 52-week high last Friday and has outpaced the S&P 500 (SPX). This shows dividend strategies beat the market again in October, as investors sought lower risk.

SCHD’s current yield is about 3.2%, while the 10-year pays about 5%, which could lead investors to put more money into Treasuries. However, this misses the point of the dividend-growth strategy: growth.

The chart below shows that, from October 2011 to September 2026, the Treasury note stagnated below 3%, even when coupons were reinvested. On the other hand, an original investment in SCHD saw its effective annual payout climb to 20.3% when dividends were automatically reinvested to purchase more shares. This visualizes the long-term benefit of dividend growth rather than settling for a flat fixed-income payout that loses purchasing power to inflation.

To read the full report, contact your account representative or email Info@wstreet.com.

Karina Hernandez
Wall Street Strategies