By Ryne Mauck
Publication Date: 2026-09-30 20:01:00
Quick Read
SCHD’s yield-screen rule forced Broadcom out in March 2024, and AVGO surged roughly 183% afterward. That gain was one SCHD holders missed entirely.
A rising share price shrinks dividend yield, which can trigger automatic removal even when a company’s business and dividend are both growing.
SCHD still gained 39% over the same window, and the same yield discipline that missed Broadcom also shields holders from unsustainable high-yield traps.
If you own the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) for income, you probably trust its rules more than any stock picker. In March 2024, those rules dropped Broadcom (NASDAQ:AVGO) from the fund’s index. From its March 15, 2024 close to its September 28, 2026 close, Broadcom’s share price rose about 183%. SCHD holders owned none of that run.
How a Rising Share Price Gets a Stock Sold
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which reconstitutes once a year in March. The index ranks candidates partly on dividend yield,…
