SCHD ETF dividend question

Salaam everyone,

I wanted to have dividend stocks and SCHD was on my mind. But because it contains many non-Halal companies I don’t want to buy the ETF.

My question is this: if I take only the Halal companies from SCHD and invest in them separately, would that be a similar dividend yield as the SCHD?

I am trying to clarify if the dividend paid by SCHD ETF is averaged from all the companies of the holding or is the dividend specifically paid by Schwab?

Hope this question makes sense.

Jazakallah for any guidance!

The dividend yield is the weighted average of the dividends paid by all the companies held by the ETF. If you only invest in the subset of holdings that are shariah compliant, your yield will not be the same. However, you can play around with the weights of the holdings or include other dividend-paying companies to aim for a comparable yield.

You can use M1 Finance’s pie feature to do this. They’ll even calculate the dividend yield for you as you make changes to your pie.