Move Over, SCHD: 3 Monthly Dividend ETFs With Superior Long-Term Returns

By Rich Duprey Published Oct 14, 11:59AM EDT

Key Points

The three ETFs below provide monthly dividend ETFs with competitive long-term gains.
Their 10-year returns outperform or rival SCHD, with equally strong five-year results.
Each ETF offers unique strategies, balancing income, growth, and stability.

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Move Over, SCHD: 3 Monthly Dividend ETFs With Superior Long-Term Returns — © Chainarong Prasertthai / iStock via Getty Images

Investors seeking reliable income and growth often turn to exchange-traded funds (ETFs) like Schwab US Dividend Equity (NYSE:SCHD | SCHD Price Prediction), known for its consistent dividends and solid performance.

However, other monthly dividend ETFs offer compelling alternatives with strong 10-year returns and even competitive five-year performances. The three ETFs below also have the benefit of providing more frequent payouts, appealing to those prioritizing steady cash flow for reinvestment or income needs.

Although SCHD is often considered the gold standard for dividend-paying ETFs, let’s see why these ETFs may outshine SCHD for long-term investors, focusing on their decade-long track records while also noting shorter-term results.

Amplify CWP Enhanced Dividend Income (DIVO)

Amplify CWP Enhanced Dividend Income (NYSEARCA:DIVO) stands out with its actively managed approach, blending dividend-paying stocks with a covered call strategy to boost income. Over the past 10 years, DIVO has delivered a robust 12.5% annualized return, slightly edging out SCHD’s 12.2%. This performance stems from its focus on high-quality, dividend-growing companies combined with option income, which cushions volatility.

While DIVO has a tech component representing 16.9% of the total portfolio, which has helped amplify returns during the artificial intelligence boom, financials (28.8% of the total) and industrials (16.5%) provide necessary balance. Its top three positions are Caterpillar (NYSE:CAT), Apple (NASDAQ: AAPL), and Visa (NYSE:V).

Over five years, DIVO’s 13.4% return significantly outpaces SCHD’s 12.0%, making it a strong contender for investors seeking both income and growth. Its monthly payouts provide steady cash flow, ideal for reinvestment or income-focused portfolios.

WisdomTree U.S. Total Dividend (DTD)

WisdomTree U.S. Total Dividend (NYSEARCA:DTD) takes a comprehensive approach, targeting a wide range of dividend-paying U.S. stocks across all market caps. Its 10-year annualized return of 12.4% closely rivals SCHD’s, reflecting its diversified exposure to stable, dividend-focused companies. DTD’s methodology weights stocks by their total dividend payments, favoring firms with consistent cash flows.

Like DIVO, Wisdom Tree also invests heavily into financial stocks, which account for almost 21% of the portfolio, while technology stocks represent 16.1%. Healthcare stocks, though, are the third leg of its stool at more than 11% of the portfolio. Its top three holdings are Microsoft (NASDAQ:MSFT), JPMorgan Chase (NYSE:JPM), and Nvidia (NASDAQ:NVDA).

Over five years, DTD shines brighter with a 15.1% return, surpassing SCHD. given this ETF’s broad diversification, its monthly dividend checks make it a reliable choice for investors prioritizing long-term stability and income.

SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) tracks the iconic Dow Jones Industrial Average, offering exposure to 30 blue-chip US companies. With a 10-year annualized return of 13.3%, DIA easily outperforms SCHD, driven by its focus on industry leaders with strong fundamentals. Over five years, DIA’s 12.8% return slightly outpaces SCHD’s 12.0%, showing resilience despite its concentrated holdings.

Like the index itself, DIA is centered on financials, which comprise 27% of the total, followed by tech, at 20.5%. Industrials make up another 14%, while consumer discretionary stocks are almost 13% of the portfolio. Goldman Sachs (NYSE:GS) is the largest position at over 10% of its holdings, with Microsoft and Caterpillar neck-and-neck in second and third place at just over 6%, respectively.

DIA’s monthly dividends, derived from stalwart companies, appeal to investors seeking a balance of growth and income with a proven track record.

Why These ETFs Stand Out

While SCHD remains a popular choice, DIVO, DTD, and DIA offer distinct advantages. DIVO’s active management and options strategy enhance returns, particularly in volatile markets. DTD’s broad dividend focus provides diversification, reducing sector-specific risks. DIA’s blue-chip exposure ensures stability and consistent growth, appealing to conservative investors.

All three ETFs deliver monthly dividends, unlike SCHD’s quarterly payouts, offering more frequent income for reinvestment or withdrawals.

Their 10-year returns either match or exceed SCHD’s performance, while their five-year performances highlight their edge in recent years.

Balancing Risk and Reward

Each ETF carries unique risks. DIVO’s active management and options strategy may introduce higher volatility in certain conditions. DTD’s broad exposure mitigates sector risk but may lag in growth-driven markets, while DIA’s focus on 30 large-cap stocks limits diversification but benefits from the stability of blue-chip firms.

Investors should weigh these factors against their goals, but the combination of monthly dividends and strong long-term returns makes these ETFs compelling alternatives to SCHD.

About the Author Rich Duprey →

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been interviewed for both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.