In my previous video I indicated that SCHD pays a 7 dividend yield taken from ETFDB com There might be some confusion as some viewers are stating its in fact closer to 3 8 so here s a clarification Dividend yield is calculated by taking the annual dividend payment divided by the share price The 3 8 as commonly seen is annualizing the most recent dividend payment divided by the share price The problem with that is the most recent payment is the lowest dividend payment in 6 years which isnt an accurate reflection The 7 is taking the trailing 12 month dividend payment divided by the share price which is a bit more in line with the average Using the most recent payment of 0 26 is well below the average historical payment in recent years Dividends are never guaranteed and past performance is not indicative of future results