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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 August 24, 2026

Best for

  • OInvestors who want higher current income (5.15% vs 2.88% for SCHD).
  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.

Jump to the side-by-side numbers

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 14.48% total return against 31.45%. The lead holds up over 10 years too: SCHD has compounded at 13.19% a year, against 4.55% for O. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 18.2% for O. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
O13.60%14.48%9.82%3.46%4.55%9.88%18.2%0.270.38-19.3%
SCHD29.07%31.45%17.34%10.28%13.19%13.72%13.2%0.881.29-16.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 24, 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricOSCHD
Full nameRealty Income CorporationSchwab U.S. Dividend Equity ETF
IssuerRealty IncomeSchwab
Last Close$62.60 as of August 24, 2026$35.11 as of August 24, 2026
Distribution yield5.15%2.88%
Distribution Safety Score™ 100100
Expense ratio—0.06%
AUM—$112B
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
Beta0.720.56
Last dividend$0.2710$0.2525
Ex-dividend date08/31/202606/24/2026

Bottom lineChoose O if you want higher current income (5.15% vs 2.88% for SCHD). Choose SCHD if you want a quality-dividend tilt rather than the whole market.

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Income calculator

See how much monthly income a hypothetical investment would generate in each security at current yields.

Schwab
ETFs33
Total AUM$615B

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

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

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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 5.15% vs 2.88% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

Who should choose each?

Choose O

Realty Income Corporation

  • Want higher current income — O yields 5.15% vs 2.88% for SCHD.
  • Want real-estate exposure for income and inflation sensitivity.

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 0.7 for O.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, O would generate roughly $42.92/month, while SCHD would produce $24.00/month, at current distribution rates.

O yield5.15%
SCHD yield2.88%
Monthly diff on $10K$18.92

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 built around net lease REIT exposure, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.72 for O and 0.56 for SCHD, making SCHD the less volatile of the two by this measure.

O beta0.72
SCHD beta0.56

Security details

O (Realty Income Corporation) is a real estate investment trust. SCHD is managed by Schwab (launched 10/20/2011) with $112B in assets.

SCHD AUM$112B
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Frequently asked questions

What is the current distribution yield for O and SCHD?

O currently distributes 5.15% and SCHD 2.88%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

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 built around net lease REIT exposure, 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.

Is O or SCHD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: O scores 100, SCHD scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 0.72 for O). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

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 $42.92 per month ($515.00 annually). The same in SCHD would produce about $24.00 per month ($288.00 annually).

Which has performed better historically, O or SCHD?

O has lagged SCHD over the trailing twelve months, posting a 14.48% total return against 31.45%. The lead holds up over 10 years too: SCHD has compounded at 13.19% a year, against 4.55% for O. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 18.2% 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 August 15, 2026.

Overview

O is a real estate investment trust that owns single-tenant net lease commercial properties and distributes cash monthly. SCHD is an ETF that tracks the Dow Jones U.S. Dividend 100 Index, holding 100 large-cap U.S. stocks with a history of consistent dividend payments. The core difference is asset class: O provides direct real estate exposure with a higher yield, while SCHD offers equity diversification at a lower yield with minimal fees.

How they differ

O yields 5.20% paid monthly; SCHD yields 2.93% paid quarterly. That higher yield in O comes from its net lease REIT structure—tenants pay property taxes, insurance, and maintenance—so Realty Income converts a higher share of cash flow into distributions. SCHD tracks 100 dividend aristocrats and near-aristocrats, so its yield reflects equity markets' current pricing of mature, cash-generative companies rather than the leveraged cash flow of real estate assets. O has a beta of 0.72, suggesting it moves less dramatically than the S&P 500; SCHD's beta of 0.56 is even lower, reflecting its tilt toward stable, less-volatile dividend payers. SCHD charges 0.06% annually with $106B in assets; O has no stated expense ratio as a REIT and operates via internal management.

Who each is best for

O: Fits investors seeking monthly cash flow and are comfortable with real estate market cycles, tenant credit risk, and interest rate sensitivity. Works for those who want a high-distribution-rate holding anchored to long-term net lease agreements rather than equity price appreciation.

SCHD: Fits investors wanting broad exposure to proven U.S. dividend-payers with low fees and quarterly distributions. Designed for those who prioritize portfolio simplicity, low turnover costs, and a proxy for the large-cap dividend income segment without sector concentration.

Key risks to know

  • Interest-rate sensitivity in O: Net lease REITs face headwinds when bond yields rise, since higher discount rates compress property valuations. Refinancing risk also rises for O's mortgage debt in a higher-rate environment.
  • Tenant credit risk in O: A significant concentration of rent from a small number of major tenants or a narrow group of industries (retail, for example) could pressure collections and distributions if those tenants weaken or restructure.
  • NAV erosion in O if distributions exceed property growth: O's 5.20% yield is well above most U.S. real estate cap rates; if the company cannot reinvest retained earnings or acquired properties at returns above the distribution rate, NAV per share may contract over time.
  • Equity concentration and style drift in SCHD: The fund holds 100 stocks but may be overweighted toward a subset of high-yield names or sectors; if those fall out of favor, the fund's stability promise could erode.
  • Dividend-cut risk in SCHD: Unlike O's contractual rent agreements, dividend payments from equities are at the discretion of boards and can be cut or suspended during downturns.

Bottom line

O offers much higher monthly income and real estate diversification, but carries leverage, tenant concentration, and interest-rate exposure. SCHD provides lower yield with diversified equity holding, minimal fees, and a lower beta. If steady monthly income and property-based cash flows matter most, O stands out; if fee efficiency and broad dividend-stock exposure fit your aims, SCHD's structure is simpler and cheaper. Past performance doesn't guarantee future results; both will fluctuate with interest rates and economic conditions.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

How REITs pay income How to read a fund's stats Return of capital, explained

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