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1 The 10 Most Terrifying Things About SCHD High Dividend Paying Stock

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks often stand apart as a favorable alternative, particularly for people seeking to make passive income. One of the standout players in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend history calculator). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has gotten a following amongst income-seeking investors. This article aims to dig deep into SCHD, exploring its qualities, performance, and what possible financiers need to 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 aims to provide direct exposure to high dividend-yielding stocks while also ensuring a measure of quality. The underlying goal is not only to provide appealing yields however likewise to provide long-term capital gratitude.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldRoughly 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers often take a look at both historical efficiency and current metrics when considering any investment. Below is a comparison of SCHD's performance versus the wider market and its peer group over different amount of time.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged slightlySince Inception209.3%205.0%SCHD somewhat surpassed
These metrics illustrate that SCHD has actually revealed significant total returns, particularly since its beginning. While it may not regularly outshine the S&P 500 over every time frame, its capability to yield dividends consistently makes it a worthy prospect for income-focused financiers.
Top Holdings
A diverse portfolio is important for reducing danger while guaranteeing constant growth. The top holdings in SCHD assistance accomplish this by representing a variety of sectors. Below are the top 10 holdings since 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