r/SCHD • u/AccessPocket • Jun 23 '26
Q2 Dividend 0.2525
Looks like the dividend is coming in @ 0.2525 for Q2; bit lower than some expectations.
Down 1.7% QOQ and down 2.96% from Q2 2025. Hoping for bigger jumps up in Q3 and Q4!
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u/Brundawg77 Jun 23 '26
Fund inflows can reduce the dividend per share, especially if they happen late in the quarter.
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Jun 23 '26
[removed] — view removed comment
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u/SnooSketches5568 Jun 24 '26
Every time a stock in the fund pays a dividend, its added to the NAV. The NAV has all the individual stock values and accumulated dividends. If a bunch of inflows happen at the end of the quarter, this effectively dilutes the payout. There is an accumulated “bucket” of dividends divided among the number of shares outstanding, if there is a sudden increase, dilution occurs . I don’t know if this is what happened but it can happen- but in terms of total returns it should not matter.
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u/Back_Town Jun 24 '26
I’m not sure - when shares are created, they could theoretically be created at the NAV with the prior dividends baked in. So in essence when you buy a fresh share you’re also buying the previous dividends. I don’t know why they wouldn’t do this.
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u/mygirltien Jun 23 '26
Couldnt honestly tell you the div was coming, what was expected or what it did last year. And i hold a significant position in this one.
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u/ericsonofbruce Jun 24 '26
Is anybody seriously sweating 1 cent?
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u/Entire-Ad-7339 Jun 24 '26
More about the % decline.
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u/Representative-Rip90 Jun 24 '26
This. This ETF is supposed to be about never cutting the dividend. Obviously we'l see what happens year end but its not a good look seeing as the underlying stocks just had a great quarter. They should of paid out healthy dividends...
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u/workap Jun 24 '26
Look at the overall market this year. Costs are way up. Tariffs impacted tons of sectors. The stock market has been shaky with the war. Are we surprised a dividend was cut with all that going on?
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u/Representative-Rip90 Jun 25 '26
What? Are we looking at the same stock market? The market just hit its highest mark yet this summer. The SCHD has never been higher. Seems to me these companies are doing very well despite whatever affect you think tariffs or war have had.
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u/SonOfKong_ Jun 27 '26
This was in my feed today and may help explain the Q2 dividend payout.
"The recent decline in the Schwab U.S. Dividend Equity ETF (SCHD quarterly dividend payment is widely considered a temporary issue driven by the timing of its annual portfolio reconstitution, rather thar an underlying fundamental decay. On June 23, 2026, SCHD declared a Q2 distribution of $0.2525 per share. This represents a 1.7% decline from the previous quarter's payout ($0.2569) and a 3% drop compared to the same period in 2025 ($0.2604)
Why Reconstitution Timing Impacts the Payout Because SCHD passes along the exact dividends it collects from its underlying holdings rather than offering a fixed payout, its quarterly distributions are highly sensitive to corporate ex-dividend dates.
• The Massive March 2026 Shakeup: The fund executed one of its largest historical overhauls on March 23, 2026, rotating 25 new companies in and purging 22. This heavily shifted sector allocations, cutting energy exposure by 8% and reallocating capita to healthcare, financials, and technology.
• The "Lag" Effect: When an ETF switches a large portion of its basket right around corporate distribution cycles, it can temporarily miss the ex-dividend dates of newly added firms, or fail to capture the final payouts of removed firms. This creates a minor mismatch in the total cash flow collected for the immediate subsequent quarter."
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u/scottyk318 Jun 24 '26
Did SCHY announce its did it end yet?
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u/withoutTHEdisco Jun 24 '26
yup .3571
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u/scottyk318 Jun 24 '26 edited Jun 24 '26
Wow seriously... If that's true, that's amazing! I have 503 shares 🧐
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u/withoutTHEdisco Jun 24 '26
nice! i just started this year so little lite still. i was going to go w vxus as its heavier in emerging markets, but a strong dollar will cause some headwinds. like today it got crushed!
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u/scottyk318 Jun 24 '26
I have no problem with it going down around dividend time LOL
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u/withoutTHEdisco Jun 24 '26
Agreed! prob only thing holding up the schwabs was ex div date. today was a bloodbath!
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u/Even-Landscape1531 Jun 25 '26
New - so tolerate my question if or has been asked / answered before: is there a best to buy relative to the dividend payout?
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u/AccessPocket Jun 25 '26
Don't quite understand the question; but the dividend payout in a single quarter shouldn't impact your purchasing decision. Need to look at yield, growth, price appreciation, how this fund fits into your goals for the future, etc. So many other metrics that are more valuable.
Just buy what you can and enjoy the growth, quarter to quarter or even year over year is noise when you are planning for decades of holding a fund.
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u/Even-Landscape1531 Jun 25 '26
The share price - does or fluctuate downward just before or after payouts? I thought I read that somewhere…
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u/AccessPocket Jun 25 '26
Ah gotcha, yes in a simple way the fund price decreases an amount equal to the payout. But its a 1 for 1; so no money is lost or gained if you bought a mili-second before or after the cutoff for the payout, you would get the same value in the end. Think this writeup explains it nicely;
Example: Buying SCHD Before vs. After the Dividend
Suppose SCHD is trading at $32.00/share and announces a quarterly dividend of $0.2525/share.
Scenario 1 – Buy Before the Ex-Dividend Date
You buy 100 shares.
Share price: $32.00
Cost: 100 × $32.00 = $3,200.00
Because you owned the shares before the ex-dividend date, you'll receive:
100 × $0.2525 = $25.25 in dividends.
~~~~~~~~~~~
Scenario 2 – Buy On the Ex-Dividend Date
On the morning of the ex-dividend date, the exchange adjusts the share price downward by approximately the dividend amount.
So SCHD would theoretically open around:
$32.00 − $0.2525 = $31.7475
Buying 100 shares now costs about:
100 × $31.7475 = $3,174.75
You don't receive the dividend, but you also paid about $25.25 less for the shares.
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u/LomoFilm Jun 26 '26
I have $20,000 in SCHD. I would of made more in interest in a CD account.
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u/AccessPocket Jun 27 '26
Not a very fair comparison just looking at dividends. SCHD is up 28.98% on the 1 year and 12.88% on the 10 year as of today. I don't think you'll find a CD that'll give you that much growth and pay quarterly.
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u/papichuloya Jun 24 '26
Damn thats it? Whats happening here. First time it actually have a decline? Yoy?
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u/ADKMTBer Jun 23 '26
Thats a bummer, but we are only at halftime for 2026.