What if you invested monthly in a dividend-growth ETF (SCHD) for 5 years?
SCHD holds US companies that have steadily raised their dividends. The past 5 years put this dividend style on a path that diverged from growth stocks.
Investment conditions
Asset · Dividend-Growth ETF (SCHD)
Method · Recurring monthly investment
Period · 2021-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-12.7%
Largest drop from peak
Longest loss period
4months
Months in loss: 12
Recovery period
2months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $13,556 → Final value $18,128 (+33.7%), Maximum drawdown (MDD) -12.7%
Why this period and asset
The 5 years after July 2021 saw sharp swings between styles. During the 2022 rate-hike phase, dividend- and value-leaning names held up relatively better than growth, but through the AI-led rally of 2023-2024 growth stocks pulled ahead and dividend names were sometimes left behind. SCHD centers on firms with a record of steadily rising dividends, so it aims for dividends plus gradual growth rather than sharp spikes.
Interpreting the result
Over a span as short as 5 years, entry timing and style rotation matter far more than compounding. Dividend-growth names tend to wobble less in crashes, yet this window still held a maximum drawdown from the high and a stretch below invested cost. Buying a fixed amount each month accumulated more units when dividend names were out of favor and pressured, and if dividends are reinvested those units added force in the recovery. Note that a headline dividend yield can differ from actual after-tax returns.
Caveats & limits
This is a simplified simulation that ignores taxes, trading fees, and currency effects. Dividends in particular are taxed, and this calculation does not separately model dividend reinvestment or dividend taxes. Past performance does not guarantee future returns and depends on one specific start date. Figures follow USD-based prices; returns in another currency depend on exchange rates.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Cierre ajustado (refleja dividendos y desdoblamientos de acciones)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Are SCHD's dividends reflected in this calculation?
This is based on price data and does not separately model dividend payments, reinvestment, or dividend taxes. For a dividend-growth ETF, dividends can make up a large share of the true total return.
Do dividend stocks avoid losses?
No. Dividend-growth names also suffer maximum drawdowns and time underwater in market declines. They may wobble less, but that does not mean they never fall below invested cost.
Is choosing dividends over growth an advantage?
Style leadership rotates over time. Even within these 5 years there were stretches when dividends led and stretches when growth led. Neither can be declared better outright.
Related scenarios
📋 Los resultados se basan en datos históricos; las rentabilidades pasadas no garantizan rentabilidades futuras.
📋 Este servicio se ofrece con fines educativos para ayudarte a entender la inversión, no como asesoramiento de inversión.