Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks frequently stick out as a beneficial option, especially for individuals seeking to make passive income. Among 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 acquired a following among income-seeking financiers. This article intends to dig deep into SCHD, exploring its characteristics, performance, and what possible financiers should 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 provide exposure to high dividend-yielding stocks while also ensuring a step of quality. The underlying goal is not just to use attractive yields but likewise to provide long-term capital gratitude.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldRoughly 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors often look at both historical performance and current metrics when thinking about any financial investment. Below is a comparison of SCHD's performance versus the broader market and its peer group over different time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%schd dividend growth rate high dividend-paying stock (www.celticsblog.com) exceeded3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged a littleSince Inception209.3%205.0%SCHD somewhat outperformed
These metrics highlight that SCHD has actually shown considerable total returns, especially considering that its beginning. While it may not consistently outshine the S&P 500 over every time frame, its ability to yield dividends consistently makes it a worthy candidate for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for lessening danger while making sure consistent growth. The top holdings in SCHD assistance accomplish this by representing a variety of sectors. Below are the top 10 holdings since the newest 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