The Schwab U.S. Dividend Equity ETF (SCHD) is one of the most widely followed dividend ETFs in the market, with assets under management exceeding $50 billion. It is designed to track the performance of high-quality U.S. companies with a strong history of paying dividends, screened for financial strength and sustainability.
| Rank | Symbol | Company | % of Fund |
|---|---|---|---|
| 1 | ABBV | AbbVie Inc. | 4.17% |
| 2 | COP | ConocoPhillips | 4.06% |
| 3 | CVX | Chevron Corp. | 4.05% |
| 4 | HD | Home Depot Inc. | 4.04% |
| 5 | LMT | Lockheed Martin Corp. | 4.03% |
| 6 | CSCO | Cisco Systems Inc. | 4.00% |
| 7 | VZ | Verizon Communications | 3.97% |
| 8 | AMGN | Amgen Inc. | 3.95% |
| 9 | MO | Altria Group Inc. | 3.93% |
| 10 | KO | Coca-Cola Co. | 3.87% |
| 11 | PEP | PepsiCo Inc. | 3.84% |
| 12 | MRK | Merck & Co. | 3.80% |
| 13 | TXN | Texas Instruments | 3.79% |
| 14 | BMY | Bristol-Myers Squibb | 3.63% |
| 15 | EOG | EOG Resources | 2.57% |
| 16 | UPS | United Parcel Service | 2.49% |
| 17 | FAST | Fastenal Company | 2.20% |
| 18 | VLO | Valero Energy | 2.14% |
| 19 | SLB | Schlumberger | 2.09% |
| 20 | OKE | ONEOK Inc. | 1.87% |
| 21 | F | Ford Motor Company | 1.84% |
| 22 | PAYX | Paychex Inc. | 1.68% |
| 23 | KMB | Kimberly-Clark Corp. | 1.66% |
| 24 | TGT | Target Corp. | 1.62% |
| 25 | FITB | Fifth Third Bancorp | 1.21% |
While 2025 has been a mixed year for SCHD, with the ETF posting a modest year-to-date decline of about 1%, its long-term track record remains impressive. Investors continue to turn to SCHD for consistent dividend income, strong company fundamentals, and relatively lower volatility compared with the broader equity market.
At the heart of SCHD are stalwarts from the healthcare, energy, consumer staples, and defense sectors. Understanding the fund requires examining its top holdings closely, which collectively provide the income and resilience that make SCHD a core holding for investors focused on dividends.
1. AbbVie (ABBV)
AbbVie is the largest holding in SCHD and one of the healthcare sector’s dividend champions. Known for its blockbuster drug Humira, AbbVie has successfully transitioned its revenue base to newer immunology drugs, such as Skyrizi and Rinvoq, while also leveraging its acquisition of Allergan to expand into aesthetics and neuroscience.
From an income perspective, AbbVie has a history of raising its dividend annually, offering one of the highest yields among large-cap pharmaceutical companies. The company’s consistent generation of free cash flow supports both its dividend payments and ongoing R&D investments.
For SCHD investors, AbbVie provides both defensive stability and growth optionality. Healthcare spending is resilient in all economic climates, making ABBV a cornerstone of SCHD’s income strategy.
2. ConocoPhillips (COP)
ConocoPhillips is one of the world’s largest independent exploration and production companies, with a portfolio spanning oil, natural gas, and LNG assets. Energy producers, such as ConocoPhillips, bring a cyclical component to SCHD’s portfolio, balancing defensive holdings with exposure to commodity-driven upside.
The company benefits from disciplined capital allocation, with shareholder returns prioritized through dividend payments and share repurchases. Rising global energy demand and constrained supply in certain regions support ConocoPhillips’ ability to maintain strong free cash flow.
For SCHD, ConocoPhillips adds diversification through the energy sector, offering both dividend income and inflation protection when commodity prices rise.
Value stocks in less than 60 seconds with TIKR’s new Valuation Model (It’s free) >>>
3. Chevron (CVX)
Chevron, one of the world’s largest integrated oil and gas companies, rounds out SCHD’s top three holdings. Unlike ConocoPhillips, Chevron operates across the full energy value chain, from exploration to refining and distribution. This integration helps stabilize earnings and cash flows across commodity cycles.
Chevron is a proven dividend aristocrat, having raised its dividend for decades. Its balance sheet strength and disciplined project investments, particularly in liquefied natural gas (LNG) and renewable fuels, give it a long-term edge in the evolving energy landscape.
As a top SCHD holding, Chevron provides not only dividend reliability but also global diversification and defensive scale, reinforcing the ETF’s income-generating mission.
How AbbVie, Chevron, and ConocoPhillips Anchor Income Investors
SCHD is built differently than broad-market ETFs, it tilts heavily toward income, stability, and financial strength. With healthcare, energy, consumer staples, and defense among its largest allocations, the ETF provides a mix of recession-resistant sectors and cyclical exposure.
The concentration in high-dividend payers, such as AbbVie, Chevron, and ConocoPhillips, makes SCHD a reliable source of income, although it may lag during high-growth market rallies. That tradeoff is the cost of consistency.
Key Insights
- Dividend focus: Screens for companies with strong dividend histories and financial strength.
- Sector tilt: Heavy in healthcare, energy, and consumer staples, less exposure to high-growth tech compared with the S&P 500.
- Downside cushion: Often outperforms during market pullbacks but lags in bull markets led by growth stocks.
- Top-heavy structure: The top 15 holdings account for the majority of the fund’s performance.
Why SCHD Is a Solid Investment
The Schwab U.S. Dividend Equity ETF (SCHD) remains a favorite for dividend-focused investors, even in a year when returns are flat. Its focus on consistent dividend growers, financial strength, and sector diversification makes it a long-term core holding.
By leveraging leaders like AbbVie, Chevron, and ConocoPhillips, SCHD offers both reliable income and exposure to both defensive and cyclical sectors. While it won’t always keep pace with high-growth benchmarks, SCHD’s resilience and income profile keep it a powerful tool for building durable portfolios.
Quickly value any stock with TIKR’s powerful new Valuation Model (It’s free!) >>>
Want to Invest Like Warren Buffett, Joel Greenblatt, or Peter Lynch?
TIKR just published a special report breaking down 5 powerful stock screeners inspired by the exact strategies used by the world’s greatest investors.
In this report, you’ll discover:
- A Buffett-style screener for finding wide-moat compounders at fair prices
- Joel Greenblatt’s formula for high-return, low-risk stocks
- A Peter Lynch-inspired tool to surface fast-growing small caps before Wall Street catches on
Each screener is fully customizable on TIKR, so you can apply legendary investing strategies instantly. Whether you’re looking for long-term compounders or overlooked value plays, these screeners will save you hours and sharpen your edge.
This is your shortcut to proven investing frameworks, backed by real performance data.
Click here to sign up for TIKR and get this full report now, completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
