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The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has raised its annual dividend every year since its 2011 inception. That's 14 consecutive years of dividend growth, a feat that few dividend ETFs can match.

The other stats behind that streak are equally impressive:

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10.4% annual dividend growth rate over the past decade

3.3% dividend yield

17.4% year-to-date return; top 10 among U.S. dividend ETFs

Many people associate dividend ETFs with above-average yields but lower total returns. The Schwab U.S. Dividend Equity ETF demonstrates you can have all three: high yield, dividend growth, and strong total returns.

The ETF achieves its dividend increases through a strict dividend stock selection policy that considers elements of high yield, dividend growth, and balance sheet quality.

A flaw of some ETFs is that they consider only one of these factors, leaving them vulnerable to weaknesses related to the others. The Schwab U.S. Dividend Equity ETF, on the other hand, uses these qualifiers as a cross-check against the others. The result is a portfolio filled almost exclusively with high-quality companies that can deliver dividend growth sustainably for years (if not decades).

The consideration of strong fundamental metrics, including cash flow to debt and return on equity (ROE), also helps mitigate drawdown risk. This is an under-appreciated factor for delivering superior long-term returns. Most investors focus on maximizing upside. Outperformance can also be achieved by minimizing downside.

This is what makes the Schwab U.S. Dividend Equity ETF an important investment option for all investors, whether you're seeking growth or income, you're young or old, or wealthy or not.

As much fun as it is to invest in the latest hot tech or artificial intelligence (AI) stock and hope for a moonshot, long-term wealth is built on portfolios of high-quality stocks of companies that generate a lot of cash and build their balance sheets over time.

Few ETFs have done this as well as the Schwab U.S. Dividend Equity ETF. Its current 14-year dividend growth streak indicates a few key facts:

Companies with long dividend growth histories tend to be more financially stable.

The 3.3% yield demonstrates that high quality can sit alongside high income generation.

The fund's 17.3% year-to-date return and 12.6% 10-year average annual return mean that investors aren't sacrificing total return for income.

This is the type of investment profile that deserves consideration for anybody's portfolio.

Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $393,037!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,627!*

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*Stock Advisor returns as of June 24, 2026.

David Dierking has positions in Schwab U.S. Dividend Equity ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SCHD Has Raised Its Dividend Every Year for 14 Straight Years. Here's Why That Matters to You. was originally published by The Motley Fool