Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks frequently stick out as a favorable choice, especially for individuals looking for to make passive income. One of the standout players in this domain is the Schwab U.S. dividend calculator for schd Equity ETF (SCHD). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has gotten a following amongst income-seeking investors. This blog post intends to dig deep into SCHD, exploring its characteristics, performance, and what prospective investors must think about.
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 supply direct exposure to high dividend-yielding stocks while also making sure a measure of quality. The underlying goal is not only to use attractive yields however likewise to offer long-lasting capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (as of the recent quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap businessPerformance Insights
Investors typically take a look at both historical efficiency and current metrics when considering any financial investment. Below is a comparison of SCHD's performance versus the broader market and its peer group over various time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%schd dividend wizard outperformed3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged a littleConsidering that Inception209.3%205.0%SCHD somewhat surpassed
These metrics show that SCHD has shown substantial total returns, especially since its creation. While it may not consistently outperform the S&P 500 over whenever frame, its capability to yield dividends consistently makes it a worthy candidate for income-focused investors.
Top Holdings
A varied portfolio is essential for reducing risk while making sure constant growth. The top holdings in SCHD help accomplish this by representing a range of sectors. Below are the top 10 holdings as of the latest 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