Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks frequently stand apart as a favorable alternative, especially for people looking for to earn passive income. Among the standout players in this domain is the Schwab U.S. Dividend Equity ETF (schd dividend wizard). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has actually gained a following amongst income-seeking financiers. This post aims to delve deep into SCHD, exploring its characteristics, performance, and what prospective financiers 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 exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying objective is not only to provide attractive yields but also to supply long-term capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (as of the current quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Investors typically take a look at both historical performance and current metrics when thinking about any investment. Below is a comparison of schd dividend per year calculator’s efficiency against the more comprehensive market and its peer group over different amount of time.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%schd dividend yield formula lagged slightly5 Years92.1%104.5%SCHD lagged a littleSince Inception209.3%205.0%SCHD somewhat outperformed
These metrics illustrate that SCHD has actually shown significant total returns, especially since its inception. While it may not consistently surpass the S&P 500 over every time frame, its capability to yield dividends consistently makes it a deserving prospect for income-focused investors.
Top Holdings
A varied portfolio is vital for minimizing risk while ensuring constant growth. The top holdings in SCHD help attain 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