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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 often stand out as a beneficial choice, particularly for individuals seeking to make 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 gained a following among income-seeking financiers. This post intends to delve deep into SCHD, exploring its qualities, performance, and what possible investors need to 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 direct exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying objective is not only to use attractive yields but also to supply long-term capital gratitude.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Financiers frequently take a look at both historical efficiency and recent metrics when thinking about any investment. Below is a contrast of SCHD's efficiency against the wider market and its peer group over different timespan.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%SCHD slightly surpassed
These metrics highlight that SCHD has actually shown substantial total returns, especially since its inception. While it may not consistently exceed the S&P 500 over whenever frame, its ability to yield dividends consistently makes it a deserving prospect for income-focused investors.
Top Holdings
A diverse portfolio is essential for reducing risk while guaranteeing steady growth. The top holdings in SCHD assistance accomplish this by representing a variety of sectors. Below are the top 10 holdings since 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