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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 frequently stand apart as a beneficial alternative, particularly for people seeking to earn passive income. Among the standout players 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 amongst income-seeking financiers. This post aims to dive deep into SCHD, exploring its attributes, performance, and what prospective investors ought to 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 intends to offer direct exposure to high dividend-yielding stocks while also ensuring a procedure of quality. The underlying goal is not just to use attractive yields but likewise to provide long-lasting capital appreciation.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldAround 4.0% (as of the recent quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessEfficiency Insights
Investors typically take a look at both historic performance and current metrics when thinking about any financial investment. Below is a contrast of SCHD's performance versus the broader market and its peer group over different time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%SCHD somewhat exceeded
These metrics illustrate that SCHD has actually revealed considerable total returns, particularly given that its beginning. While it might not consistently outperform the S&P 500 over each time frame, its capability to yield dividends regularly makes it a worthy prospect for income-focused financiers.
Top Holdings
A diverse portfolio is vital for reducing danger while ensuring steady growth. The top holdings in SCHD aid accomplish this by representing a variety of sectors. Below are the top 10 holdings as of 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