Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks frequently stand apart as a favorable option, particularly 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-paying U.S. stocks and has acquired a following amongst income-seeking investors. This article aims to delve deep into SCHD, exploring its characteristics, efficiency, and what potential financiers need to consider.
What Is SCHD?
schd dividend per year calculator 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 provide exposure to high dividend-yielding stocks while also making sure a measure of quality. The underlying objective is not just to offer appealing yields but likewise to provide long-lasting 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 ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesPerformance Insights
Investors typically take a look at both historical efficiency and current metrics when considering any investment. Below is a contrast of schd semi-annual dividend calculator high Dividend-paying stock (king-wifi.win)’s efficiency against the broader market and its peer group over various amount of time.
Performance TableTime Periodschd dividend champion Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%SCHD slightly surpassed
These metrics show that SCHD has actually shown substantial total returns, particularly since its creation. While it may not regularly surpass the S&P 500 over every time frame, its ability to yield dividends regularly makes it a deserving candidate for income-focused financiers.
Top Holdings
A varied portfolio is vital for decreasing danger while guaranteeing constant growth. The top holdings in SCHD help attain 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