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1 The 10 Scariest Things About SCHD High Yield Dividend

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks frequently stick out as a favorable choice, particularly for individuals seeking to make passive income. One of the standout players in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend per share calculator). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has gained a following amongst income-seeking investors. This post intends to dig deep into SCHD, exploring its characteristics, performance, and what possible financiers should 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 provide direct exposure to high dividend-yielding stocks while also making sure a step of quality. The underlying objective is not only to offer appealing yields but likewise to supply 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 CareAverage Market CapMid to large-cap businessEfficiency Insights
Financiers frequently take a look at both historical efficiency and current metrics when considering any financial investment. Below is a comparison of SCHD's performance against the broader market and its peer group over numerous amount of time.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%schd yield on cost calculator outshined3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged slightlyConsidering that Inception209.3%205.0%SCHD a little outshined
These metrics illustrate that SCHD has actually shown considerable total returns, particularly given that its beginning. While it may not consistently exceed the S&P 500 over whenever frame, its ability to yield dividends regularly makes it a worthy prospect for income-focused financiers.
Top Holdings
A varied portfolio is important for decreasing danger while ensuring consistent growth. The top holdings in SCHD assistance achieve this by representing a variety of sectors. Below are the top 10 holdings as of the newest 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