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1 The 10 Scariest Things About SCHD High Yield Dividend

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks typically stick out as a beneficial alternative, particularly for people looking for to earn passive income. Among the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has actually acquired a following amongst income-seeking investors. This post aims to dive deep into SCHD, exploring its attributes, efficiency, and what potential investors must consider.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that looks for to track the efficiency of the Dow Jones U.S. Dividend 100 Index. The fund intends to supply exposure to high dividend-yielding stocks while likewise guaranteeing a measure of quality. The underlying objective is not just to provide appealing yields however also to offer long-term capital gratitude.
Key Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldAround 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessEfficiency Insights
Investors often look at both historical performance and recent metrics when thinking about any financial investment. Below is a contrast of SCHD's efficiency against the broader market and its peer group over different amount of time.
Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%schd ex dividend date calculator lagged a littleSince Inception209.3%205.0%SCHD slightly outperformed
These metrics illustrate that SCHD has shown considerable total returns, particularly given that its beginning. While it may not regularly outperform the S&P 500 over every time frame, its ability to yield dividends regularly makes it a worthwhile candidate for income-focused financiers.
Top Holdings
A varied portfolio is essential for reducing danger while ensuring consistent growth. The top holdings in SCHD aid attain this by representing a range of sectors. Below are the top 10 holdings as of the most current 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