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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 frequently stand out as a beneficial alternative, particularly for people looking for to make passive income. One of 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 gotten a following among income-seeking investors. This post aims to delve deep into SCHD, exploring its attributes, performance, and what prospective investors ought to 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 also making sure a step of quality. The underlying goal is not just to offer attractive yields however likewise to supply long-lasting capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Cost Ratio0.06%Dividend YieldRoughly 4.0% (as of the current quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers frequently look at both historic efficiency and recent metrics when considering any investment. Below is a comparison of SCHD's performance against the more comprehensive market and its peer group over different timespan.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged a littleConsidering that Inception209.3%205.0%SCHD a little outperformed
These metrics show that SCHD has actually revealed significant total returns, especially because its inception. While it might not regularly outperform the S&P 500 over each time frame, its capability to yield dividends consistently makes it a worthwhile candidate for income-focused investors.
Top Holdings
A diverse portfolio is essential for reducing danger while guaranteeing consistent growth. The top holdings in SCHD aid attain this by representing a variety 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