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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 favorable alternative, 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 gotten a following among income-seeking investors. This article aims to dive deep into SCHD, exploring its qualities, efficiency, and what possible investors should consider.
What Is SCHD?
schd high yield dividend 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 ensuring a procedure of quality. The underlying objective is not only to provide appealing yields but also to supply long-term capital gratitude.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Cost Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesPerformance Insights
Investors frequently look at both historical efficiency and current metrics when considering any investment. Below is a contrast of SCHD's efficiency versus the more comprehensive market and its peer group over numerous timespan.
Efficiency TableTime Periodschd yield on cost calculator Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%schd dividend reinvestment calculator lagged somewhat5 Years92.1%104.5%SCHD lagged somewhatGiven that Inception209.3%205.0%SCHD somewhat exceeded
These metrics show that schd semi-annual dividend calculator has revealed significant total returns, particularly considering that its creation. While it may not consistently exceed the S&P 500 over each time frame, its capability to yield dividends consistently makes it a deserving candidate for income-focused investors.
Top Holdings
A diverse portfolio is essential for decreasing danger while making sure consistent growth. The top holdings in SCHD aid attain 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