Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks frequently stick out as a beneficial choice, especially for individuals looking for to earn passive income. Among the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF (calculate schd dividend). This exchange-traded fund focuses on high dividend yield calculator schd-paying U.S. stocks and has gotten a following amongst income-seeking investors. This post aims to dig deep into SCHD, exploring its attributes, performance, and what prospective financiers ought to think about.
What Is SCHD?
schd dividend tracker is an exchange-traded fund (ETF) that looks for to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund intends to supply direct exposure to high dividend-yielding stocks while also making sure a step of quality. The underlying goal is not only to use appealing yields however also to provide long-term capital appreciation.
Secret Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (as of the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors often take a look at both historical performance and current metrics when considering any financial investment. Below is a comparison of SCHD's efficiency versus the broader market and its peer group over various timespan.
Performance TableTime Periodschd high dividend-Paying stock Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged slightlySince Inception209.3%205.0%SCHD slightly outperformed
These metrics highlight that SCHD has actually revealed substantial total returns, especially since its beginning. While it might not consistently outperform the S&P 500 over whenever frame, its ability to yield dividends regularly makes it a worthwhile candidate for income-focused investors.
Top Holdings
A varied portfolio is essential for minimizing threat while making sure stable growth. The top holdings in SCHD assistance attain 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