Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks often stand apart as a favorable choice, especially for people seeking to earn 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 calculator for schd-paying U.S. stocks and has acquired a following among income-seeking financiers. This blog site post aims 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 efficiency of the Dow Jones U.S. Dividend 100 Index. The fund aims to provide 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:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldRoughly 4.0% (as of the current quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessEfficiency Insights
Financiers often take a look at both historic efficiency and current metrics when thinking about any investment. Below is a comparison of SCHD's performance against the wider market and its peer group over different amount of time.
Performance TableTime PeriodSchd high dividend-paying stock Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%schd annual dividend calculator lagged slightly5 Years92.1%104.5%SCHD lagged a littleSince Inception209.3%205.0%SCHD a little surpassed
These metrics show that schd dividend distribution has shown substantial total returns, especially because its creation. While it may not consistently outperform the S&P 500 over each time frame, its ability to yield dividends consistently makes it a worthy prospect for income-focused financiers.
Top Holdings
A varied portfolio is crucial for lessening danger while making sure consistent growth. The top holdings in SCHD help achieve this by representing a range of sectors. Below are the top 10 holdings as of 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