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Security Comparison

O vs SCHD: Which Is the Better Pick in 2026?

A head-to-head comparison of Realty Income Corporation and Schwab U.S. Dividend Equity ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Schwab
ETFs34
Total AUM$586B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.

See our curated list of related YouTube videos on SCHD.

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Side-by-side snapshot

OSCHD
Full nameRealty Income CorporationSchwab U.S. Dividend Equity ETF
IssuerRealty IncomeSchwab
Last Close$65.18 as of July 21, 2026$32.75 as of July 21, 2026
Distribution yield4.95%3.08%
Distribution Safety Score™ 100100
Expense ratio—0.06%
AUM—$101B
Distribution frequencyMonthlyQuarterly
Underlying index—Dow Jones U.S. Dividend 100 Index
ObjectiveA real estate investment trust that invests in freestanding, single-tenant commercial properties subject to long-term net lease agreements. Known as "The Monthly Dividend Company," Realty Income has a long track record of monthly dividend payments and consistent dividend growth.Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset classReal EstateEquity
Inception dateN/A10/20/2011
Beta0.7290.58
Last dividend$0.2710$0.2525
Ex-dividend date07/31/202606/24/2026

Bottom lineChoose O if you want higher current income (4.95% vs 3.08% for SCHD). Choose SCHD if you want a quality-dividend tilt rather than the whole market.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

O has lagged SCHD over the trailing twelve months, posting a 20.95% total return against 25.98%. The lead holds up over 10 years too: SCHD has compounded at 12.39% a year, against 4.32% for O. SCHD has been the steadier holding, though — annualized volatility of 13.1% against 18.4% for O. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
O15.71%20.95%6.83%4.64%4.32%10.09%18.4%0.120.16-26.5%
SCHD20.05%25.98%13.62%9.60%12.39%13.26%13.1%0.640.92-16.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

O (Realty Income Corporation) is a real estate investment trust, while SCHD (Schwab U.S. Dividend Equity ETF) is an ETF — they take fundamentally different approaches.

O offers the higher yield at 4.95% vs 3.08% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

Deep dive

Yield & income

On a $10,000 investment, O would generate roughly $41.25/month, while SCHD would produce $25.67/month, at current distribution rates.

O yield4.95%
SCHD yield3.08%
Monthly diff on $10K$15.58

Cost & efficiency

SCHD charges a 0.06% expense ratio — roughly $60 over 10 years on $10,000 (simplified, not compounded). O is a real estate investment trust, not a fund, so it charges no expense ratio.

SCHD ER0.06%

Strategy & risk

O is a real estate investment trust, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.729 for O and 0.58 for SCHD, indicating SCHD is less volatile relative to the market.

O beta0.729
SCHD beta0.58

Security details

O (Realty Income Corporation) is a real estate investment trust. SCHD is managed by Schwab (launched 10/20/2011) with $101B in assets.

SCHD AUM$101B
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Frequently asked questions

Is O or SCHD better for dividend income?

It depends on your goals. O currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between O and SCHD?

O (Realty Income Corporation) is a real estate investment trust, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index. They are issued by Realty Income and Schwab respectively.

Can I hold both O and SCHD?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, O or SCHD?

SCHD charges a 0.06% expense ratio. O is a real estate investment trust, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.

How much income does $10,000 in O vs SCHD generate?

At current rates, $10,000 in O would generate roughly $41.25 per month ($495.00 annually). The same in SCHD would produce about $25.67 per month ($308.00 annually).

Which has performed better historically, O or SCHD?

O has lagged SCHD over the trailing twelve months, posting a 20.95% total return against 25.98%. The lead holds up over 10 years too: SCHD has compounded at 12.39% a year, against 4.32% for O. SCHD has been the steadier holding, though — annualized volatility of 13.1% against 18.4% for O. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

O vs SCHD — at a glance

Generated July 2026 from current fund data.

Overview

O is a net-lease REIT that owns single-tenant commercial properties and distributes income monthly, while SCHD is a broad-based equity ETF tracking 100 high-dividend large-cap stocks with quarterly payouts. The fundamental difference is structural: O generates income from real estate leases and depreciation benefits; SCHD's income comes from dividends paid by operating companies. O yields 5.26% monthly; SCHD yields 3.12% quarterly.

How they differ

O's 5.26% distribution rate more than compensates for its higher volatility (beta 0.734 vs. SCHD's 0.59), but that yield relies on continued rent collection and tenant credit quality. SCHD's 3.12% yield comes with the stability of a diversified basket of 100 established dividend-payers and an expense ratio of just 0.06%, making it a low-friction holding. O has a $63.84 share price with monthly distributions; SCHD trades at $32.39 with quarterly payouts. O's monthly cadence appeals to income-focused investors seeking frequent distributions, while SCHD's quarterly structure and $95.2B in AUM make it a core equity building block. The real divide is between concentrated real estate exposure and diversified equity exposure—O is a single-asset-class bet, SCHD is a dividend-screen applied to a broad equity universe.

Who each is best for

O: Fits investors who want steady, high current income from real estate fundamentals and can tolerate sector concentration and monthly cash flow variability tied to tenant performance.

SCHD: Designed for investors seeking diversified equity dividend exposure with minimal costs, who value portfolio stability and don't require monthly income distribution.

Key risks to know

  • Real estate credit risk (O): O's income depends on tenant creditworthiness and ability to pay rent. A recession or retail disruption can trigger defaults, vacancies, or forced tenant buyouts that erode distributions.
  • NAV volatility and interest-rate sensitivity (O): Net-lease REITs are sensitive to rising discount rates; when bond yields rise, REIT valuations compress. O's beta of 0.734 reflects this. Recent rate environments have pressured O's share price even when distributions held steady.
  • Net-lease lease structure maturity (O): As O's portfolio of leases reaches renewal, the company faces reinvestment risk if new lease rates come in below historical terms or tenants demand rent reductions.
  • Dividend-screen mean reversion (SCHD): The Dow Jones U.S. Dividend 100 Index selects high-yielding stocks; over time, some become less attractive as valuations mean-revert or dividend growth slows relative to the broader market. SCHD's holdings can turn over materially when fundamentals deteriorate.
  • Tax efficiency (both): O generates substantial depreciation deductions that shelter ordinary income, creating tax-deferred distributions; SCHD's dividend income is fully taxable as ordinary income, making tax location a relevant consideration.

Bottom line

If you prioritize current income and can absorb real estate sector risk, O's 5.26% monthly yield and long track record of dividend growth offers concentrated upside. If you want diversified equity exposure with low costs and modest but steady income, SCHD's 3.12% yield, broad holdings, and 0.06% expense ratio align better. Past performance doesn't guarantee future results—both have benefited from favorable dividend and valuation environments that may not persist.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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