3020schd-high-dividend-paying-stock

1 The 10 Scariest Things About SCHD High Dividend Paying Stock

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks often stick out as a beneficial option, especially for people looking for to make passive income. One of the standout players 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 among income-seeking financiers. This post aims to dig deep into SCHD, exploring its characteristics, performance, and what possible investors 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 intends to supply direct exposure to high dividend-yielding stocks while also guaranteeing a measure of quality. The underlying goal is not only to use attractive yields but likewise to supply long-lasting capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Financiers typically look at both historical performance and recent metrics when considering any financial investment. Below is a comparison of SCHD's performance versus the wider market and its peer group over different amount of time.
Performance 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 slightlyGiven that Inception209.3%205.0%SCHD a little outshined
These metrics highlight that Schd high dividend-paying stock has actually shown considerable total returns, especially because its inception. While it might not regularly outshine 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 varied portfolio is essential for reducing risk while making sure consistent growth. The top holdings in SCHD aid attain this by representing a range of sectors. Below are the top 10 holdings since the 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