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Understanding SCHD: A High Dividend-Paying Stock Worth Considering<br>In the intricate world of investing, dividend stocks often stand out as a beneficial alternative, particularly for individuals seeking to make passive income. Among 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 gained a following amongst income-seeking investors. This article aims to dig deep into SCHD, exploring its qualities, performance, and what potential financiers should think about.<br>What Is SCHD?<br>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 aims to offer exposure to high dividend-yielding stocks while likewise guaranteeing a step of quality. The underlying goal is not just to offer attractive yields however likewise to supply long-lasting capital gratitude.<br>Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldAround 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights<br>Financiers frequently take a look at both historical performance and recent metrics when considering any financial investment. Below is a contrast of SCHD's performance against the more comprehensive market and its peer group over various timespan.<br>Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatBecause Inception209.3%205.0%SCHD slightly exceeded<br>These metrics illustrate that [schd high dividend-paying stock](https://www.hongzumwalt.top/finance/unlocking-the-power-of-passive-income-a-deep-dive-into-the-schd-stock-dividend-calculator/) has actually revealed considerable total returns, especially because its creation. While it might not consistently outperform the S&P 500 over every time frame, its ability to yield dividends consistently makes it a worthy candidate for income-focused financiers.<br>Top Holdings<br>A diverse portfolio is essential for minimizing danger while guaranteeing steady growth. The top holdings in SCHD help attain this by representing a range of sectors. Below are the top 10 holdings as of the current reporting.<br>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 & |
