$10,000 in SCHD with dividends reinvested could grow to over $152,000 in 25 years. Without reinvestment? About $103,000. That $49,000 gap came from a single checkbox — the one that says “reinvest dividends.” This SCHD dividend reinvestment calculator lets you plug in your own numbers and see exactly what DRIP does over time.
What Is SCHD?
100 hand-picked U.S. dividend stocks screened for quality, cash flow, and growth history.
~$85B AUM · 0.06% Fee · 3.3-3.5% Yield · Quarterly Dividends
Your starting amount, monthly contribution, and time horizon will change everything. Try this SCHD dividend reinvestment calculator with your own numbers.
SCHD Dividend Reinvestment Calculator
Compare DRIP ON vs OFF. See what reinvesting actually does over time.
What Your SCHD Dividend Reinvestment Calculator Results Mean
The calculator above estimates your future SCHD income based on current yield, dividend growth history, and whether you reinvest. Three scenarios show how compounding works at different scales.
At the $10K lump sum level, the DRIP advantage is subtle — about $2,500 over a decade. But at $500/month for 20 years, reinvested dividends become the dominant growth driver. The SCHD dividend reinvestment calculator rewards both the lump-sum and hybrid approaches — the key variable is time.
DRIP vs No-DRIP: How the Gap Widens
The SCHD dividend reinvestment calculator highlights a pattern that only becomes obvious over long periods. The difference between reinvesting and not reinvesting SCHD dividends looks small in year one. It isn’t small by year fifteen. Here’s a projection based on $10,000 invested — assuming SCHD’s historical price appreciation (~8% annually) and ~10% annual dividend growth.
| Time Horizon | With DRIP | Without DRIP | Gap |
|---|---|---|---|
| 5 Years | $17,234 | $16,830 | $404 |
| 10 Years | $29,699 | $27,167 | $2,532 |
| 15 Years | $51,183 | $42,842 | $8,341 |
| 20 Years | $88,206 | $66,656 | $21,550 |
| 25 Years | $152,010 | $102,906 | $49,104 |
Based on SCHD historical price appreciation (~8%/yr) and dividend growth (~10%/yr). Past performance is not a guarantee of future results.
$10,000 Invested — DRIP vs No-DRIP Over Time
At the 5-year mark, DRIP barely moves the needle — about $400 extra. By year 20, it’s $21,550. By year 25, nearly $49,000. The math is straightforward: each reinvested dividend buys more shares, those shares pay more dividends, and the cycle compounds on itself. The longer the time horizon, the more DRIP dominates.
The SCHD dividend reinvestment calculator above is SCHD-specific. Want to see how compounding works beyond SCHD — with any amount, any rate, any timeline? Use this general-purpose tool.
Compound Growth Calculator
Plug in your numbers. Watch compounding do the work.
How SCHD Dividend Reinvestment Actually Works
SCHD pays dividends quarterly — typically in March, June, September, and December. When you enable DRIP through your broker, those cash payouts automatically buy more SCHD shares instead of sitting in your account. No action required after the initial setup. The SCHD dividend reinvestment calculator models this exact cycle over your chosen time horizon.
A quick note on share price: SCHD completed a 3-for-1 stock split in October 2024, which is why shares trade around $31 instead of the ~$95 pre-split price. The split changed nothing about the fund’s total value or dividend payouts — you simply own three times as many shares at one-third the price.
The mechanics are simple. If SCHD pays $0.26 per share and you own 316 shares, you receive $82.16 that quarter. At a share price of $31.64, DRIP buys you roughly 2.6 additional shares. Next quarter, those 2.6 shares generate their own dividends. That’s the cycle the SCHD dividend reinvestment calculator models every quarter.
Most major brokerages — including Schwab, Fidelity, and Vanguard — offer DRIP at no extra cost with fractional share support. That means every cent of your dividend goes back to work, regardless of share price.
The Yield on Cost Effect
One of the less visible benefits of holding SCHD long-term is yield on cost — your effective yield based on what you originally paid, not the current price. SCHD’s dividend has grown at roughly 10-13% annually over the past decade — though that pace has slowed to about 7% over the most recent three years.
That growth transforms a modest starting yield into something substantial, but longer projections should account for the recent deceleration.
| Holding Period | Yield on Cost | Annual Income per $10K |
|---|---|---|
| Today | 3.5% | $350 |
| Year 5 | 5.6% | $564 |
| Year 10 | 9.1% | $908 |
| Year 15 | 14.6% | $1,462 |
| Year 20 | 23.5% | $2,355 |
Assumes 10% annual dividend growth from a 3.5% starting yield. Projected, not guaranteed.
Yield on Cost — $10K Invested Today
A 3.3-3.5% yield today becomes a 9.1% yield on your original cost in 10 years — if SCHD’s dividend growth rate holds near its historical average. By year 20, you’d be earning $2,355 annually on every $10,000 invested. That’s the quiet power of dividend growth compounding on itself, even before factoring in price appreciation or additional purchases.
SCHD Dividend Reinvestment Calculator: Tax Considerations
DRIP doesn’t mean tax-free. Every reinvested dividend is still taxable income in the year it’s paid — even though you never see the cash. In a taxable brokerage account, SCHD’s quarterly distributions count as qualified dividends, taxed at 0%, 15%, or 20% depending on your income bracket.
In a Roth IRA or traditional IRA, this issue disappears. Dividends reinvest and compound without triggering any annual tax event. For large SCHD positions, holding inside a tax-advantaged account can meaningfully improve long-term compounding — you keep 100% of each dividend working for you instead of losing a slice to taxes every quarter.
What Makes SCHD Different From Other Dividend ETFs
SCHD holds approximately 100 U.S. stocks filtered for dividend quality — not just high yield. The Dow Jones U.S. Dividend 100 Index screens for cash flow strength, return on equity, and a minimum of 10 consecutive years of dividend payments. That quality filter is why the SCHD dividend reinvestment calculator projections assume sustained dividend growth.
As of February 2026, SCHD manages over $85 billion in assets with a 0.06% expense ratio. The top holdings include Lockheed Martin, Chevron, ConocoPhillips, Verizon, and Texas Instruments — blue-chip companies with long dividend histories. For a deeper breakdown of SCHD’s holdings, sector weights, and historical performance, see our full SCHD ETF review.
Where SCHD stands relative to alternatives like JEPI (higher current yield, lower growth) or VYM (broader dividend exposure, lower quality screen) depends on whether you prioritize income today or income growth over time. Run each scenario through the SCHD dividend reinvestment calculator to compare both paths side by side.
SCHD Dividend Reinvestment Calculator FAQ
How do I turn on DRIP for SCHD?
Most brokerages let you enable dividend reinvestment in your account settings or on the individual holding page. Schwab, Fidelity, and Vanguard all offer automatic DRIP at no extra cost with fractional share support. Once enabled, every SCHD dividend is automatically used to purchase additional shares.
What is SCHD’s current dividend yield?
As of February 2026, SCHD’s forward dividend yield is roughly 3.3-3.5%. The fund pays distributions quarterly and has grown its dividend at roughly 10-13% annually over the past decade, though the 3-year growth rate has slowed to about 7%. The SCHD dividend reinvestment calculator above uses this yield as a starting point for projections.
Are reinvested SCHD dividends taxable?
Yes — in a taxable brokerage account, reinvested dividends are still taxable in the year they’re paid, even though you never receive cash. SCHD dividends generally qualify for the lower qualified dividend tax rate (0%, 15%, or 20%). In a Roth IRA or traditional IRA, dividends reinvest tax-free until withdrawal.
How accurate is this SCHD dividend reinvestment calculator?
The calculator uses mathematical compounding models based on inputs you provide — dividend yield, growth rate, and time horizon. It does not predict future performance. Actual results will vary based on market conditions, dividend changes, and share price fluctuations. Use it as a planning tool, not a guarantee.
SCHD vs VOO — which is better for dividend reinvestment?
VOO’s dividend yield (~1.2%) is significantly lower than SCHD’s (~3.5%), but VOO has historically delivered higher total returns through price appreciation. SCHD’s advantage is in dividend income and dividend growth — making it more suitable for investors who want visible, growing cash flow. See our SCHD vs VOO comparison for full data.
This article is for informational purposes only and does not constitute investment advice. All projections are based on mathematical models using historical data — actual results will differ. Past performance is not a guarantee of future results. Always do your own research or consult a licensed financial advisor before making investment decisions.