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1 The 10 Most Terrifying Things About SCHD High Yield Dividend

Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks typically stick out as a favorable alternative, especially for people looking for to earn passive income. Among the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has actually gained a following amongst income-seeking investors. This article aims to dig deep into SCHD, exploring its attributes, performance, and what potential investors need to consider.
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 aims to offer direct exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying goal is not only to use attractive yields however also to provide long-term capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (as of the current quarter)Top Sector ExposuresInfo Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessPerformance Insights
Investors often take a look at both historic performance and current metrics when considering any financial investment. Below is a comparison of SCHD's performance versus the wider market and its peer group over numerous timespan.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged slightlyBecause Inception209.3%205.0%SCHD a little outshined
These metrics highlight that SCHD has actually shown considerable total returns, particularly since its creation. While it may not regularly outperform the S&P 500 over every time frame, its ability to yield dividends consistently makes it a worthwhile prospect for income-focused investors.
Top Holdings
A diverse portfolio is essential for lessening risk while making sure constant growth. The top holdings in SCHD help 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