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Understanding SCHD: A High Dividend-Paying Stock Worth Considering<br>In the intricate world of investing, dividend stocks often stand apart as a beneficial choice, especially for individuals looking for to make passive income. One of the standout players in this domain is the Schwab U.S. Dividend Equity ETF (SCHD). This exchange-traded fund concentrates on high dividend-paying U.S. stocks and has acquired a following among income-seeking financiers. This post intends to dig deep into SCHD, exploring its attributes, performance, and what potential investors should think about.<br>What Is SCHD?<br>[schd dividend history](https://articlescad.com/10-things-youve-learned-in-kindergarden-to-help-you-get-schd-dividend-period-55448.html) is an exchange-traded fund (ETF) that looks for 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 guaranteeing a procedure of quality. The underlying objective is not only to provide attractive yields however likewise to provide long-lasting capital appreciation.<br>Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (as of the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesEfficiency Insights<br>Financiers typically look at both historic efficiency and recent metrics when considering any investment. Below is a comparison of SCHD's performance against the more comprehensive market and its peer group over various time frames.<br>Performance TablePeriod[schd high yield Dividend](https://hoff-stougaard-2.mdwrite.net/seven-explanations-on-why-calculate-schd-dividend-is-important) Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged a littleConsidering that Inception209.3%205.0%SCHD somewhat exceeded<br>These metrics show that SCHD has revealed significant total returns, especially because its creation. While it may not regularly exceed the S&P 500 over each time frame, its ability to yield dividends regularly makes it a worthy prospect for income-focused financiers.<br>Top Holdings<br>A diverse portfolio is essential for reducing threat while guaranteeing steady growth. The top holdings in SCHD help achieve this by representing a variety of sectors. Below are the top 10 holdings as of the newest 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 & |
