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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 apart as a favorable choice, particularly for people seeking to earn 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 gained a following amongst income-seeking investors. This article aims to dig deep into SCHD, exploring its qualities, performance, and what possible investors must consider.
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 supply direct exposure to high dividend-yielding stocks while likewise making sure a step of quality. The underlying goal is not only to provide appealing yields however also to provide long-lasting capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldRoughly 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessPerformance Insights
Financiers often look at both historical performance and recent metrics when thinking about any financial investment. Below is a comparison of SCHD's efficiency versus the more comprehensive market and its peer group over various time frames.
Efficiency TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatBecause Inception209.3%205.0%SCHD somewhat surpassed
These metrics highlight that SCHD has actually revealed substantial total returns, particularly considering that its beginning. While it might not consistently outshine the S&P 500 over whenever frame, its ability to yield dividends consistently makes it a deserving candidate for income-focused financiers.
Top Holdings
A diverse portfolio is vital for decreasing threat while ensuring constant growth. The top holdings in SCHD aid accomplish this by representing a variety of sectors. Below are the top 10 holdings as of the latest 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