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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 stick out as a favorable option, particularly for individuals looking for to make 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 gotten a following among income-seeking investors. This article intends to dive deep into SCHD, exploring its characteristics, efficiency, and what potential investors need to think about.
What Is SCHD?
schd high yield dividend is an exchange-traded fund (ETF) that seeks to track the efficiency of the Dow Jones U.S. Dividend 100 Index. The fund intends to supply exposure to high dividend-yielding stocks while likewise making sure a measure of quality. The underlying goal is not just to offer attractive yields but also to supply long-lasting capital gratitude.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInfo Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers often take a look at both historical performance and current metrics when considering any investment. Below is a contrast of SCHD's efficiency versus the wider market and its peer group over different timespan.
Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%schd dividend aristocrat outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged a littleConsidering that Inception209.3%205.0%SCHD slightly exceeded
These metrics illustrate that SCHD has shown substantial total returns, especially because its creation. While it might not consistently outperform the S&P 500 over each time frame, its capability to yield dividends regularly makes it a deserving prospect for income-focused investors.
Top Holdings
A diverse portfolio is essential for lessening risk while making sure stable growth. The top holdings in SCHD assistance accomplish this by representing a range 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