Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks typically stand out as a beneficial alternative, particularly for people seeking to earn 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 actually gotten a following among income-seeking investors. This post aims to dive deep into SCHD, exploring its qualities, efficiency, and what potential investors must consider.
What Is SCHD?
schd ex dividend date calculator is an exchange-traded fund (ETF) that seeks to track the performance of the Dow Jones U.S. Dividend 100 Index. The fund intends to provide direct exposure to high dividend-yielding stocks while also ensuring a measure of quality. The underlying objective is not only to provide attractive yields however also to provide long-term capital gratitude.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementCreation DateOctober 20, 2011Cost Ratio0.06%Dividend YieldApproximately 4.0% (since the recent quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap businessPerformance Insights
Investors typically take a look at both historic efficiency and current metrics when thinking about any investment. Below is a comparison of SCHD's performance versus the broader market and its peer group over various amount of time.
Efficiency TableTime PeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD surpassed3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%schd high dividend-paying stock somewhat surpassed
These metrics illustrate that SCHD has revealed significant total returns, especially because its inception. While it might not consistently exceed the S&P 500 over each time frame, its ability to yield dividends consistently makes it a worthwhile candidate for income-focused investors.
Top Holdings
A varied portfolio is vital for decreasing risk while guaranteeing constant growth. The top holdings in SCHD help achieve 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