SCHD vs. JEPI

The dividend grower vs. the income machine — the most important fork in income investing, compared live.

Head to Head, Live

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Yields are each fund's last 12 months of real payments divided by today's price — computed live, not quoted from a fact sheet.

The Fixed Facts
SCHDJEPI
What it isDividend-growth index ETF (~100 quality dividend stocks)Option-income ETF (stocks + covered-call overlay)
Run bySchwabJPMorgan
Typical yield~3.5–4%~7–8%
Payout trendRaised every year 2012–2025 (~11%/yr growth)Varies with volatility; no growth pattern
PaysQuarterlyMonthly
Tax characterMostly qualified — 0/15/20% ratesMostly ordinary income
Expense ratio~0.06%~0.35%
Paying since20112020

The Short Answer

This isn't a matchup between two rivals — it's a fork between two philosophies. JEPI hands you roughly twice the income starting today, and that's the whole promise: the checks don't grow, they just arrive. SCHD starts at half the yield but has raised its payout every year since 2012 at ~11% a year — income that compounds. Pick by your timeline, not by the bigger number.

The Crossover Math, Done Honestly

Here's the question that actually matters: when does SCHD's growing payout catch JEPI's big one? At historical rates — SCHD yielding ~4% and growing ~11% a year, JEPI paying ~7.5% flat — a dollar invested in SCHD today reaches JEPI's payout rate on your original money in roughly 6 to 8 years, and keeps climbing afterward while JEPI plateaus. The honest other half: during those years JEPI paid you nearly double the cash, and reinvesting that gap partially closes the race. That's why the $50-a-month backtest above — same window, real prices, payouts reinvested — is the fairest scoreboard available. (Try both profiles in our SCHD calculator to see the curve with your own numbers.)

Taxes: SCHD's Structural Win

In a taxable account the gap widens in SCHD's favor: its dividends are almost entirely qualified (taxed at 0/15/20%), while JEPI's option income is mostly ordinary income at your full bracket. For a high earner, after-tax, JEPI's 7.5% can behave more like 5% while SCHD's 4% behaves like 3.4% — the headline gap shrinks by a third before growth is even counted. In an IRA, ignore this paragraph entirely. Full rules: How Are Dividends Taxed?

Which One Fits You?

Choose SCHD if retirement is 8+ years away, you're investing in a taxable account, or you want income that outpaces inflation — the snowball fund. Choose JEPI if you need maximum income now with less drama than the market — the paycheck fund. Own both and glide between them as life changes; they overlap surprisingly little. Full records: SCHD history · JEPI history, and the background reads: What Is SCHD? · What Are JEPI and JEPQ?

Model Either Fund With Your Numbers

Take the live yields above into the full calculator — taxes, reinvestment toggles, and the year-by-year snowball chart.

Use the Free Dividend Calculator

More head-to-heads: JEPI vs JEPQ · QQQI vs JEPQ · SPYI vs JEPI — or see every fund on the dividend history hub.

Educational content only — not financial advice. Live figures come from a third-party data source and may contain errors or delays. Past payouts and performance do not guarantee future results. Nothing here is a recommendation to buy or sell any security.