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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 often stand out as a beneficial alternative, especially for individuals looking for to earn 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 gotten a following amongst income-seeking financiers. This article aims to dig deep into SCHD, exploring its attributes, performance, and what possible financiers should consider.
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 offer exposure to high dividend-yielding stocks while also making sure a measure of quality. The underlying goal is not just to offer appealing yields but likewise to provide long-term capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (as of the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesEfficiency Insights
Investors often look at both historic performance and recent metrics when considering any investment. Below is a comparison of SCHD's efficiency against the broader market and its peer group over different amount of time.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%Schd High Yield Dividend lagged slightlyConsidering that Inception209.3%205.0%SCHD somewhat outperformed
These metrics highlight that SCHD has actually shown significant total returns, particularly since its inception. While it may not consistently surpass the S&P 500 over each time frame, its ability to yield dividends regularly makes it a deserving prospect for income-focused investors.
Top Holdings
A diverse portfolio is crucial for minimizing risk while ensuring constant growth. The top holdings in SCHD help attain this by representing a range of sectors. Below are the top 10 holdings since the most recent 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