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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 complex world of investing, dividend stocks typically stand apart as a beneficial option, especially for individuals looking for to make passive income. One of 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 article aims to delve deep into SCHD, exploring its characteristics, performance, and what prospective financiers 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 offer exposure to high dividend-yielding stocks while also ensuring a step of quality. The underlying objective is not just to offer appealing yields but likewise to supply long-term capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Investors often take a look at both historic efficiency and recent metrics when thinking about any financial investment. Below is a contrast of SCHD's efficiency against the more comprehensive market and its peer group over numerous timespan.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%Schd high dividend-paying stock lagged slightly5 Years92.1%104.5%SCHD lagged a littleSince Inception209.3%205.0%SCHD slightly outperformed
These metrics show that SCHD has revealed significant total returns, particularly because its inception. While it may not regularly outshine the S&P 500 over every time frame, its capability to yield dividends consistently makes it a worthy candidate for income-focused investors.
Top Holdings
A diverse portfolio is essential for lessening threat while ensuring stable growth. The top holdings in SCHD help achieve this by representing a variety of sectors. Below are the top 10 holdings as of the current 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