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1 The 10 Scariest Things About SCHD High Dividend Paying Stock

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks frequently stand apart as a favorable option, especially for individuals seeking to earn passive income. One of the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend history). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has actually gotten a following amongst income-seeking financiers. This article intends to delve deep into SCHD, exploring its characteristics, efficiency, and what possible investors should think about.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that seeks to track the efficiency of the Dow Jones U.S. Dividend 100 Index. The fund intends to offer exposure to high dividend-yielding stocks while likewise making sure a procedure of quality. The underlying objective is not only to use appealing yields however likewise to provide long-lasting capital gratitude.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessEfficiency Insights
Investors frequently take a look at both historic performance and current metrics when thinking about any investment. Below is a comparison of SCHD's efficiency versus the broader market and its peer group over various time frames.
Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged a littleSince Inception209.3%205.0%SCHD somewhat exceeded
These metrics illustrate that SCHD has revealed substantial total returns, particularly considering that its creation. While it might not regularly exceed the S&P 500 over each time frame, its ability to yield dividends consistently makes it a worthwhile candidate for income-focused investors.
Top Holdings
A diverse portfolio is crucial for minimizing threat while making sure steady growth. The top holdings in SCHD aid achieve this by representing a range of sectors. Below are the top 10 holdings since the latest reporting.
Top 10 Holdings TableHoldingTickerWeight %Dividend Yield %Broadcom Inc.. AVGO 4.08 3.46Verizon CommunicationsVZ3.926.51Cisco Systems, Inc.. CSCO 3.82 3.14PepsiCo, Inc.. PEP 3.79 2.77Pfizer Inc.. PFE 3.68 4.86Coca-Cola CompanyKO3.653.09Abbott LaboratoriesABT3.621.69Home Depot, Inc.. HD3.60 2.79Texas Instruments Inc.. TXN 3.57 2.51Merck &amp