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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, especially 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 actually gained a following among income-seeking investors. This article intends to dive deep into SCHD, exploring its qualities, performance, and what prospective financiers should think about.
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 aims to offer direct exposure to high dividend-yielding stocks while also ensuring a step of quality. The underlying objective is not only to offer appealing yields however likewise to provide long-term capital appreciation.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Investors often take a look at both historical performance and current metrics when considering any investment. Below is a comparison of schd dividend payout calculator's performance against the broader market and its peer group over various amount of time.
Efficiency TableTime PeriodSCHD 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 a littleSince Inception209.3%205.0%SCHD a little outperformed
These metrics show that SCHD has actually shown substantial total returns, particularly since its creation. While it might not regularly exceed the S&P 500 over each time frame, its capability to yield dividends regularly makes it a deserving prospect for income-focused investors.
Top Holdings
A diverse portfolio is important for lessening risk while ensuring stable growth. The top holdings in SCHD aid attain this by representing a variety of sectors. Below are the top 10 holdings since 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