Which has the higher dividend yield, SCHD or JEPI?

JEPI's rolling 12-month yield (~8.4%) more than doubles SCHD's (~3.4%). JEPI generates much of its distribution from monthly option premium, while SCHD's yield comes from the underlying stock dividends.

Is JEPI better than SCHD for retirement?

JEPI is better for retirees who need to spend the income — monthly distributions and a higher yield align with monthly expenses. SCHD is better for retirees with a longer horizon who can reinvest distributions and benefit from dividend growth compounding.

Can I hold SCHD and JEPI together?

Yes — many investors pair them. SCHD provides growth and quality exposure, JEPI provides high monthly income with reduced volatility. The combination smooths total return while delivering meaningful current yield.

Are JEPI distributions qualified dividends?

Mostly no. The portion derived from equity-linked notes (ELNs) is taxed as ordinary income. SCHD distributions, by contrast, are generally more tax-efficient because they come primarily from qualified equity dividends.

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ETF Comparison

SCHD vs JEPI: Dividend Growth or Monthly Income?

SCHD delivers steady quarterly dividend growth from quality U.S. large-caps. JEPI pays a high monthly yield from covered-call premium. Compare yield, expense, returns, holdings, and which fits your goal.

Data as of April 27, 2026

SCHD

Schwab U.S. Dividend Equity ETF

Charles Schwab

Dividend Growth

Price

$31.20

Yield (TTM)

3.44%

JEPI

JPMorgan Equity Premium Income ETF

J.P. Morgan

Covered Call

Price

$57.32

Yield (TTM)

8.43%

Quick Comparison Summary

SCHD vs JEPI: compare dividend yield (3.4% vs 8.4%), expense ratio (0.06% vs 0.35%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics

Metric	SCHD	JEPI
Issuer	Charles Schwab	J.P. Morgan
Inception	2011-10-20	2020-05-20
Category	Dividend Growth	Covered Call
Price	$31.20	$57.32
NAV	$31.19	$57.30
Dividend Yield (TTM)	3.44%	8.43%
Expense Ratio	0.06%	0.35%
Distribution Frequency	Quarterly	Monthly
AUM	$88.3B	$45.2B

Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

SCHD

Top 5 / 5 shown

TXN
Texas Instruments
4.31%
AMGN
Amgen
4.18%
CSCO
Cisco Systems
4.05%
VZ
Verizon
3.97%
HD
Home Depot
3.85%

Sector Weights

Financials18.4%
Health Care16.9%
Consumer Staples14.7%
Industrials13.5%
Information Tech11.2%
Energy8.6%

JEPI

Top 5 / 5 shown

MSFT
Microsoft
1.78%
AMZN
Amazon
1.65%
META
Meta Platforms
1.62%
PGR
Progressive
1.58%
TT
Trane Technologies
1.51%

Sector Weights

Information Tech16.4%
Financials15.1%
Health Care13.6%
Industrials12.9%
Consumer Staples9.8%
Communication8.2%

Pros & Cons

SCHDPros

Lowest-in-class 0.06% expense ratio
Strong dividend growth track record (10+ years required for inclusion)
Quality screens filter for cash-flow-strong businesses
More tax-efficient in taxable accounts (mostly qualified dividends)

JEPIPros

Yield ~8.4% paid monthly
Lower volatility than the S&P 500 (defensive equity sleeve)
Premium income smooths returns in choppy markets

SCHDCons

Quarterly distributions — less useful for monthly bills
Yield (~3.4%) too modest for full income replacement
No downside protection in bear markets

JEPICons

Higher 0.35% expense ratio
Capped upside in strong bull markets (covered-call drag)
Distributions partly taxed as ordinary income (ELN structure)
Limited dividend growth — designed for income, not compounding

The Verdict

SCHD is the long-term compounder; JEPI is the income generator. SCHD wins on total return and dividend growth thanks to its quality screens and rock-bottom 0.06% expense ratio. JEPI more than doubles SCHD's headline yield and pays monthly, but caps upside through its options overlay and charges 0.35% — most appropriate for retirees prioritizing predictable cash flow over capital appreciation.

Best for

SCHD

Long-term investors building a dividend-growth core position before retirement

Best for

JEPI

Retirees and income-focused investors who want monthly cash flow with reduced equity volatility

Strategy Summary

SCHD

Tracks the Dow Jones U.S. Dividend 100 Index — large-cap U.S. companies with at least 10 consecutive years of dividend payments, screened on cash-flow-to-debt, ROE, dividend yield, and 5-year dividend growth.

JEPI

Actively managed defensive equity strategy paired with equity-linked notes (ELNs) that simulate written S&P 500 covered calls, generating monthly option premium income while dampening volatility.

Frequently Asked Questions

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Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.