SCHD Projections Suggest $100 Monthly Investment Could Deliver $76,000 in 20 Years

The Schwab U.S. Dividend Equity ETF (SCHD) is one of the most popular dividend-focused exchange-traded funds, tracking the Dow Jones U.S. Dividend 100 Index with a low expense ratio of 0.06%. Its trailing yield is 3.13%, and its top holdings include Abbott Laboratories, Amgen, Merck, and Coca-Cola.

Since launching on October 20, 2011, SCHD has delivered a total return of 562%.

If you invest $100 per month in SCHD over the next 20 years, assuming a 10% annual growth rate, your initial investment of $24,000 would grow to nearly $76,000 with reinvested dividends at 3.5%. If you don't reinvest those dividends, your portfolio would only reach around $49,000.

However, in the latter scenario, you would collect about $15,000 in dividends during those two decades, resulting in a combined value of $64,000. This is lower than the total return with reinvested dividends but provides more liquidity for everyday expenses.