1 The 10 Most Scariest Things About SCHD High Dividend Paying Stock
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Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks typically stand out as a favorable alternative, especially for individuals looking for to earn passive income. Among the standout players in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has gotten a following among income-seeking investors. This blog site post aims to dive deep into SCHD, exploring its attributes, efficiency, and what potential financiers ought to think about.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that looks for to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund aims to offer direct exposure to high dividend-yielding stocks while likewise ensuring a procedure of quality. The underlying goal is not just to offer appealing yields but also to offer long-term capital appreciation.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldApproximately 4.0% (as of the recent quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesPerformance Insights
Investors often take a look at both historical efficiency and current metrics when thinking about any investment. Below is a contrast of schd dividend growth calculator's performance versus the broader market and its peer group over numerous time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatConsidering that Inception209.3%205.0%SCHD a little outperformed
These metrics illustrate that SCHD has revealed significant total returns, particularly considering that its beginning. While it might not regularly outperform the S&P 500 over each time frame, its capability to yield dividends consistently makes it a worthy prospect for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for minimizing danger while guaranteeing consistent growth. The top holdings in SCHD help achieve this by representing a range of sectors. Below are the top 10 holdings as of the most recent 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