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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 frequently stick out as a beneficial choice, particularly for people looking for to earn passive income. One of the standout gamers 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 aims to delve deep into SCHD, exploring its characteristics, efficiency, and what prospective investors need to 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 ensuring a measure of quality. The underlying goal is not only to provide appealing yields but also to provide long-lasting capital gratitude.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Cost Ratio0.06%Dividend YieldApproximately 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Investors typically look at both historic performance and current metrics when considering any financial investment. Below is a comparison of SCHD's efficiency against the more comprehensive market and its peer group over different time frames.
Performance TablePeriodschd high dividend-paying Stock Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%schd dividend ninja lagged somewhatSince Inception209.3%205.0%SCHD slightly surpassed
These metrics highlight that SCHD has shown significant total returns, particularly because its creation. While it might not consistently exceed the S&P 500 over each time frame, its capability to yield dividends consistently makes it a deserving candidate for income-focused investors.
Top Holdings
A diverse portfolio is essential for minimizing danger while ensuring steady growth. The top holdings in SCHD assistance achieve this by representing a range 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