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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 complicated world of investing, dividend stocks frequently stick out as a beneficial choice, especially for individuals seeking 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 actually gained a following amongst income-seeking financiers. This post aims to dive 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 seeks to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund intends to supply exposure to high dividend-yielding stocks while likewise guaranteeing a procedure of quality. The underlying objective is not just to offer attractive yields but likewise to provide long-lasting capital gratitude.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (as of the recent quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessEfficiency Insights
Investors typically take a look at both historical efficiency and current metrics when thinking about any investment. Below is a comparison of SCHD's efficiency against the more comprehensive market and its peer group over different amount of time.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged somewhatConsidering that Inception209.3%205.0%SCHD slightly exceeded
These metrics show that SCHD has shown significant total returns, particularly since its inception. While it may not consistently exceed the S&P 500 over every time frame, its ability to yield dividends consistently makes it a deserving candidate for income-focused investors.
Top Holdings
A varied portfolio is vital for minimizing threat while guaranteeing constant growth. The top holdings in SCHD aid achieve this by representing a variety 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