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Understanding SCHD: A High Dividend-Paying Stock Worth Considering<br>In the intricate world of investing, dividend stocks frequently stick out as a favorable alternative, particularly for individuals seeking to make 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 acquired a following amongst income-seeking investors. This blog post intends to dive deep into SCHD, exploring its characteristics, efficiency, and what prospective investors must consider.<br>What Is SCHD?<br>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 provide direct exposure to high dividend-yielding stocks while likewise ensuring a step of quality. The underlying goal is not just to offer appealing yields but likewise to provide long-term capital appreciation.<br>Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesEfficiency Insights<br>Financiers typically take a 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 amount of time.<br>Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged a littleConsidering that Inception209.3%205.0%SCHD slightly surpassed<br>These metrics illustrate that [schd dividend per year calculator](http://43.248.97.109:3000/schd-dividend-frequency7352) has actually revealed substantial total returns, particularly considering that its creation. While it may not regularly surpass the S&P 500 over every time frame, its capability to yield dividends regularly makes it a worthy candidate for income-focused investors.<br>Top Holdings<br>A diverse portfolio is important for minimizing threat while ensuring 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 latest reporting.<br>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 & |
