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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 complex world of investing, dividend stocks frequently stick out as a favorable option, particularly for people seeking 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 acquired a following amongst income-seeking financiers. This post aims to delve deep into SCHD, exploring its characteristics, performance, and what possible financiers need to 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 intends to offer exposure to high dividend-yielding stocks while likewise guaranteeing a measure of quality. The underlying goal is not only to use appealing yields however also to supply long-lasting capital gratitude.
Key Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (as of the current quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesPerformance Insights
Financiers often look at both historic performance and current metrics when considering any investment. Below is a comparison of SCHD's performance versus the wider market and its peer group over numerous time frames.
Efficiency TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%schd dividend period lagged somewhat5 Years92.1%104.5%schd dividend payout calculator lagged a littleBecause Inception209.3%205.0%SCHD somewhat surpassed
These metrics show that SCHD has revealed considerable total returns, especially considering that its beginning. While it might not consistently exceed the S&P 500 over each time frame, its capability to yield dividends regularly makes it a deserving candidate for income-focused financiers.
Top Holdings
A varied portfolio is important for reducing threat while ensuring consistent growth. The top holdings in SCHD assistance accomplish this by representing a variety of sectors. Below are the top 10 holdings as of 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