Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks frequently stand out as a favorable alternative, particularly for individuals 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 acquired a following among income-seeking investors. This post aims to dig deep into SCHD, exploring its qualities, performance, and what potential financiers should consider.
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 intends to supply exposure to high dividend-yielding stocks while likewise guaranteeing a procedure of quality. The underlying objective is not only to provide appealing yields but also to provide long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception 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 companiesPerformance Insights
Investors typically take a look at both historical performance and current metrics when considering any investment. Below is a comparison of SCHD's performance versus the wider market and its peer group over various time frames.
Efficiency TableTime Periodschd dividend reinvestment calculator Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged somewhatBecause Inception209.3%205.0%schd dividend tracker high yield dividend
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The 10 Most Terrifying Things About SCHD High Yield Dividend
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