Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks frequently stand apart as a beneficial alternative, especially for individuals seeking to earn passive income. One of 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 acquired a following amongst income-seeking investors. This blog post intends to dive deep into SCHD, exploring its characteristics, efficiency, and what possible financiers ought 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 intends to provide exposure to high dividend-yielding stocks while also making sure a step of quality. The underlying goal is not just to use appealing yields but also to offer long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expense Ratio0.06%Dividend YieldRoughly 4.0% (since the current quarter)Top Sector ExposuresInfo Technology, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessPerformance Insights
Investors often take a look at both historical performance and current metrics when thinking about any financial investment. Below is a contrast of SCHD's efficiency against the wider market and its peer group over different time frames.
Efficiency TablePeriodschd high yield dividend Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%schd dividend tracker a little surpassed
These metrics illustrate that schd dividend period has shown substantial total returns, particularly considering that its beginning. While it might not consistently outperform the S&P 500 over each time frame, its ability to yield dividends regularly makes it a deserving candidate for income-focused investors.
Top Holdings
A diverse portfolio is vital for lessening risk while guaranteeing steady growth. The top holdings in SCHD help accomplish this by representing a range 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