Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks frequently stand out as a beneficial choice, particularly for individuals looking for to earn passive income. Among the standout gamers 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 gotten a following amongst income-seeking investors. This post aims to delve deep into SCHD, exploring its qualities, performance, and what potential financiers must consider.
What Is SCHD?
schd dividend frequency is an exchange-traded fund (ETF) that looks for to track the efficiency of the Dow Jones U.S. dividend yield calculator schd 100 Index. The fund intends 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 but also to provide long-lasting capital gratitude.
Key Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementCreation 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
Investors typically take a look at both historic performance and current metrics when considering any investment. Below is a comparison of SCHD’s performance against the wider market and its peer group over various time frames.
Efficiency TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD outperformed3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged slightlySince Inception209.3%205.0%SCHD slightly outperformed
These metrics highlight that SCHD has actually shown substantial total returns, especially because its creation. While it might not consistently outperform the S&P 500 over whenever frame, its ability to yield dividends consistently makes it a deserving candidate for income-focused financiers.
Top Holdings
A diverse portfolio is important for reducing risk while guaranteeing constant growth. The top holdings in SCHD help attain this by representing a variety 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