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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 complicated world of investing, dividend stocks typically stick out as a beneficial alternative, particularly for people looking for 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 focuses on high dividend-paying U.S. stocks and has gained a following among income-seeking investors. This article aims to delve deep into SCHD, exploring its attributes, efficiency, and what prospective investors must consider.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that seeks to track the performance of the Dow Jones U.S. dividend calculator for schd 100 Index. The fund intends to offer direct exposure to high dividend-yielding stocks while also guaranteeing a procedure of quality. The underlying objective is not just to offer attractive yields however likewise to provide long-lasting capital appreciation.
Key Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (since the recent quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers often 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.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatBecause Inception209.3%205.0%SCHD somewhat outperformed
These metrics illustrate that SCHD has shown substantial total returns, especially because its beginning. While it may not regularly outperform the S&P 500 over whenever frame, its ability to yield dividends regularly makes it a deserving prospect for income-focused financiers.
Top Holdings
A varied portfolio is important for decreasing risk while guaranteeing constant growth. The top holdings in SCHD assistance 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