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1 The 10 Most 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 stick out as a favorable choice, especially for people looking for to earn passive income. One of the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has acquired a following among income-seeking investors. This post aims to dig deep into SCHD, exploring its characteristics, performance, and what possible investors need to consider.
What Is SCHD?
SCHD 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 direct exposure to high dividend-yielding stocks while also guaranteeing a procedure of quality. The underlying goal is not just to use attractive yields however also to supply long-lasting capital gratitude.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers typically look at both historical performance and recent metrics when considering any investment. Below is a comparison of SCHD's efficiency versus the wider market and its peer group over various time frames.
Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%calculate schd dividend surpassed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged a littleGiven that Inception209.3%205.0%schd dividend growth calculator a little exceeded
These metrics show that SCHD has actually shown substantial total returns, especially since its beginning. While it might not consistently outshine the S&P 500 over whenever frame, its ability to yield dividends consistently makes it a worthwhile prospect for income-focused financiers.
Top Holdings
A diverse portfolio is important for lessening risk while making sure constant growth. The top holdings in schd high dividend-paying stock aid accomplish this by representing a range 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