6703schd-high-dividend-paying-stock

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 typically stand apart as a beneficial choice, particularly for people looking for to earn passive income. Among the standout players 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 actually gained a following among income-seeking financiers. This blog post intends to dive deep into SCHD, exploring its characteristics, efficiency, and what possible investors need to think about.
What Is SCHD?
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 supply direct exposure to high dividend-yielding stocks while also ensuring a step of quality. The underlying objective is not only to provide attractive yields however also to supply long-lasting capital gratitude.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldRoughly 4.0% (since the recent quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Investors frequently look at both historic performance and current metrics when considering any investment. Below is a comparison of SCHD's performance against the broader market and its peer group over various time frames.
Performance TableTime PeriodSCHD 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 somewhatBecause Inception209.3%205.0%SCHD somewhat surpassed
These metrics illustrate that SCHD has actually shown substantial total returns, especially since its beginning. While it might not consistently surpass the S&P 500 over each time frame, its ability to yield dividends regularly makes it a worthwhile prospect for income-focused investors.
Top Holdings
A varied portfolio is essential for lessening threat while ensuring steady growth. The top holdings in SCHD help achieve this by representing a range of sectors. Below are the top 10 holdings since the latest 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