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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 intricate world of investing, dividend stocks often stand out as a beneficial option, particularly for people seeking to earn passive income. Among the standout players in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend wizard). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has gained a following amongst income-seeking financiers. This post intends to dive deep into SCHD, exploring its characteristics, efficiency, and what possible financiers should 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 provide exposure to high dividend-yielding stocks while also guaranteeing a measure of quality. The underlying goal is not only to use attractive yields however likewise to supply long-lasting capital gratitude.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expense Ratio0.06%Dividend YieldRoughly 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Financiers often take a look at both historic performance and recent metrics when thinking about any financial investment. Below is a comparison of SCHD's performance versus the more comprehensive market and its peer group over numerous timespan.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%schd ex dividend date calculator outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatGiven that Inception209.3%205.0%SCHD a little outshined
These metrics show that SCHD has shown considerable total returns, particularly 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 prospect for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for decreasing danger while guaranteeing consistent growth. The top holdings in SCHD help accomplish this by representing a range 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