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1 The 10 Most Scariest Things About SCHD High Yield Dividend

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks typically stand out as a favorable alternative, particularly for individuals seeking to make passive income. Among the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend millionaire). This exchange-traded fund focuses 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, efficiency, and what potential investors need to consider.
What Is SCHD?
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 offer direct exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying objective is not just to use attractive yields but likewise to provide long-lasting capital appreciation.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Financiers frequently take a look at both historic efficiency and current metrics when thinking about any investment. Below is a contrast of SCHD's performance versus the more comprehensive market and its peer group over different time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%schd high yield dividend lagged a little5 Years92.1%104.5%SCHD lagged somewhatConsidering that Inception209.3%205.0%SCHD slightly exceeded
These metrics show that SCHD has actually shown considerable total returns, especially since its inception. While it might not consistently exceed the S&P 500 over each time frame, its capability to yield dividends consistently makes it a deserving prospect for income-focused investors.
Top Holdings
A varied portfolio is vital for minimizing danger while making sure constant growth. The top holdings in SCHD help attain this by representing a variety of sectors. Below are the top 10 holdings as of 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