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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 often stand apart as a beneficial choice, especially for individuals seeking to earn passive income. One of 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 acquired a following amongst income-seeking financiers. This article intends to dig deep into Schd high dividend-paying Stock, exploring its qualities, efficiency, and what possible investors should consider.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that seeks to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund aims to supply direct exposure to high dividend-yielding stocks while likewise ensuring a procedure of quality. The underlying objective is not only to use appealing yields but also to provide long-lasting capital gratitude.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the recent quarter)Top Sector ExposuresInfo Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors frequently take a look at both historic performance and recent metrics when thinking about any financial investment. Below is a comparison of SCHD's performance versus the more comprehensive market and its peer group over numerous amount of time.
Efficiency TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%schd dividend growth calculator lagged somewhatConsidering that Inception209.3%205.0%SCHD slightly exceeded
These metrics highlight that SCHD has shown substantial total returns, especially considering that its inception. While it may not consistently surpass the S&P 500 over each time frame, its capability to yield dividends regularly makes it a deserving candidate for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for decreasing threat while ensuring constant growth. The top holdings in SCHD help attain this by representing a variety 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