Schd Stock in focus as the market stays down in 2026 and SCHD reshuffles into healthcare dividends
schd stock is back in the spotlight as investors weigh dividend income against a sliding market in early 2026. As of March 24, 2026 (ET), the S& P 500 is down 5. 4% for the year, a backdrop that can lift dividend yields when prices fall. At the same time, the Schwab U. S. Dividend Equity ETF has completed its annual reconstitution, making notable changes to its healthcare exposure.
Market drop sharpens the dividend conversation
The S& P 500’s year-to-date decline, measured as of March 24, 2026 (ET), is prompting investors to revisit dividend strategies, since lower share prices can translate into higher dividend yields for dividend-paying stocks. In that context, the Schwab U. S. Dividend Equity ETF has been framed as a single-fund way to hold a broad basket of dividend payers while seeking both price appreciation and dividend income.
As of March 24, 2026 (ET), the S& P 500 recently showed a dividend yield of 1. 1%, while the Schwab U. S. Dividend Equity ETF’s yield was recently cited at 3. 3%. The ETF is described as holding around 100 dividend payers through an index-tracking approach.
Schd Stock: SCHD completes annual reconstitution, adds major healthcare names
The Schwab U. S. Dividend Equity ETF (SCHD) tracks the Dow Jones U. S. Dividend 100 Index, which screens dividend stocks using dividend quality characteristics that include dividend yield, five-year dividend growth rate, and financial strength. The index reshuffles once a year, and the fund has now completed that annual reconstitution.
At this year’s reconstitution, the index deleted 22 existing holdings and added 25 new stocks. Two of the biggest additions were UnitedHealth at a 4% allocation and Abbott Laboratories at 3. 95%. Those positions are now described as top-10 holdings alongside healthcare companies Merck and Amgen.
A notable cut was AbbVie, which previously carried a 3. 31% allocation. The net effect is an increase in the ETF’s healthcare exposure from 15. 4% to 18. 9%, making healthcare its second-highest weighting, behind consumer staples.
On income, the post-reconstitution portfolio is described as having roughly the same yield as before, at 3. 4%. However, the newer set of holdings is described as having a higher average dividend growth rate: 9. 4% over the last five years versus 8. 6% before the reconstitution—an update framed as potentially supporting stronger income growth over time.
Dividend track records highlighted in the reshuffle
The reshuffle also puts a spotlight on the dividend histories of the names involved. AbbVie is described as still having an attractive dividend yield of 3. 3%, with a dividend increase of 5. 5% late last year, and annual payout increases since its 2013 spinoff from Abbott Laboratories.
Abbott Laboratories is described as having delivered its 54th consecutive annual dividend increase last year, placing it among Dividend Kings—defined here as companies with 50 or more years of annual dividend increases. UnitedHealth is described as having begun paying dividends in 1990 and having increased its dividend for 17 straight years, with a current dividend yield described at 3. 4%.
What’s next for schd stock watchers
With the S& P 500 down 5. 4% year-to-date as of March 24, 2026 (ET), attention is likely to stay on how dividend-focused portfolios balance yield and resilience in a choppy tape. Investors tracking schd stock will be watching how the newly adjusted sector mix—especially the larger healthcare allocation—plays out over time, alongside whether the higher dividend growth profile described after the reconstitution translates into faster-growing income in the long run.
