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1 The 10 Most 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 stick out as a beneficial choice, particularly for individuals looking for to make passive income. Among the standout players in this domain is the Schwab U.S. Dividend Equity ETF (schd high dividend-paying stock). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has actually gotten a following amongst income-seeking investors. This article intends to delve deep into SCHD, exploring its qualities, performance, and what possible investors must consider.
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 exposure to high dividend-yielding stocks while likewise ensuring a measure of quality. The underlying objective is not only to offer appealing yields however also to offer long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors typically look at both historical efficiency and current metrics when thinking about any financial investment. Below is a comparison of SCHD's efficiency against the more comprehensive market and its peer group over different time frames.
Performance TablePeriodschd dividend tracker Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%schd quarterly dividend calculator outperformed3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged slightlySince Inception209.3%205.0%SCHD a little surpassed
These metrics highlight that SCHD has actually shown substantial total returns, especially because its inception. While it may not consistently outperform the S&P 500 over every time frame, its ability to yield dividends regularly makes it a worthy candidate for income-focused investors.
Top Holdings
A diverse portfolio is vital for reducing threat while ensuring steady growth. The top holdings in SCHD help attain this by representing a range 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