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1 The 10 Most Terrifying Things About SCHD High Dividend Paying Stock

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks typically stand out as a favorable option, especially for people seeking to earn 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 amongst income-seeking investors. This post aims to dive deep into SCHD, exploring its qualities, performance, and what possible investors should 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 offer exposure to high dividend-yielding stocks while likewise ensuring a step of quality. The underlying goal is not just to provide appealing yields but also to supply long-term capital gratitude.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessPerformance Insights
Financiers frequently look at both historic performance and recent metrics when considering any financial investment. Below is a comparison of SCHD's performance against the wider market and its peer group over various timespan.
Performance TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%schd dividend growth calculator outperformed3 Years45.3%56.2%schd dividend millionaire lagged slightly5 Years92.1%104.5%SCHD lagged somewhatConsidering that Inception209.3%205.0%SCHD a little outshined
These metrics highlight that SCHD has revealed considerable total returns, especially since its creation. While it might not regularly surpass the S&P 500 over whenever frame, its ability to yield dividends consistently makes it a worthy prospect for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for decreasing risk while guaranteeing constant growth. The top holdings in SCHD assistance accomplish 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