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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 complicated world of investing, dividend stocks often stick out as a beneficial choice, especially for individuals looking for to earn passive income. Among 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 gotten a following amongst income-seeking investors. This blog site post aims to dig deep into SCHD, exploring its attributes, performance, and what prospective investors must think about.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that seeks to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund aims to offer exposure to high dividend-yielding stocks while also ensuring a step of quality. The underlying goal is not just to provide attractive yields but also to supply long-lasting capital gratitude.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessEfficiency Insights
Financiers often take a look at both historic performance and current metrics when thinking about any investment. Below is a comparison of SCHD's efficiency versus the broader market and its peer group over different timespan.
Efficiency TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%schd dividend calendar outperformed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%schd dividend growth rate lagged slightlyConsidering that Inception209.3%205.0%SCHD somewhat outshined
These metrics show that SCHD has actually shown significant total returns, especially given that its inception. While it may not consistently outshine the S&P 500 over each time frame, its ability to yield dividends consistently makes it a worthy prospect for income-focused financiers.
Top Holdings
A varied portfolio is essential for lessening danger while guaranteeing stable growth. The top holdings in SCHD help 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