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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 intricate world of investing, dividend stocks often stand out as a beneficial alternative, particularly for people seeking to earn passive income. Among the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has gotten a following amongst income-seeking investors. This article aims to dive deep into SCHD, exploring its qualities, performance, and what possible financiers need to think about.
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 provide exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying goal is not only to provide attractive yields however likewise to offer long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors typically look at both historic performance and current metrics when considering any financial investment. Below is a comparison of SCHD's performance against the broader market and its peer group over various timespan.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged slightlyGiven that Inception209.3%205.0%SCHD a little exceeded
These metrics illustrate that SCHD has actually shown significant total returns, especially considering that its inception. While it may not consistently outshine the S&P 500 over each time frame, its capability to yield dividends regularly makes it a deserving candidate for income-focused investors.
Top Holdings
A diverse portfolio is essential for lessening risk while guaranteeing consistent growth. The top holdings in SCHD assistance attain this by representing a variety of sectors. Below are the top 10 holdings since 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