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Understanding SCHD: A High Dividend-Paying Stock Worth Considering<br>In the complex world of investing, dividend stocks typically stand apart as a favorable option, especially for individuals seeking to make passive income. One of the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF ([schd high Yield dividend](https://squareblogs.net/lyreuncle56/17-reasons-why-you-should-avoid-schd-dividend-frequency)). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has actually acquired a following among income-seeking investors. This post aims to delve deep into SCHD, exploring its attributes, performance, and what potential financiers must consider.<br>What Is SCHD?<br>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 provide direct exposure to high dividend-yielding stocks while also guaranteeing a measure of quality. The underlying goal is not just to provide attractive yields however likewise to offer long-lasting capital appreciation.<br>Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldAround 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesEfficiency Insights<br>Investors typically take a look at both historical efficiency and current metrics when considering any financial investment. Below is a comparison of SCHD's efficiency versus the wider market and its peer group over different amount of time.<br>Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%[schd semi-annual dividend calculator](https://mlx.su/paste/view/a2242b03) lagged a littleGiven that Inception209.3%205.0%SCHD somewhat outperformed<br>These metrics illustrate that [schd dividend yield formula](https://output.jsbin.com/libuyuceli/) has actually revealed significant total returns, particularly considering that its beginning. While it might not regularly outshine the S&P 500 over each time frame, its ability to yield dividends regularly makes it a worthwhile candidate for income-focused investors.<br>Top Holdings<br>A varied portfolio is vital for reducing danger while making sure consistent growth. The top holdings in SCHD aid accomplish this by representing a range of sectors. Below are the top 10 holdings as of the most recent reporting.<br>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 & |
