Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complex world of investing, dividend stocks frequently stand apart as a beneficial option, especially for individuals seeking to earn passive income. One of 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 gained a following amongst income-seeking investors. This blog post intends to delve deep into schd annual dividend calculator, exploring its attributes, efficiency, and what possible investors ought to consider.
What Is SCHD?
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 offer direct exposure to high dividend-yielding stocks while also making sure a procedure of quality. The underlying goal is not just to offer appealing yields but likewise to offer long-term capital appreciation.
Secret Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Cost Ratio0.06%Dividend YieldApproximately 4.0% (as of the current quarter)Top Sector ExposuresDetails Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights
Investors typically take a look at both historic performance and current metrics when considering any financial investment. Below is a comparison of SCHD’s performance against the more comprehensive market and its peer group over different timespan.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD outshined3 Years45.3%56.2%SCHD lagged a little5 Years92.1%104.5%SCHD lagged slightlyGiven that Inception209.3%205.0%SCHD slightly outperformed
These metrics illustrate that SCHD has actually shown significant total returns, particularly since its inception. While it may not regularly surpass the S&P 500 over whenever frame, its capability to yield dividends regularly makes it a deserving prospect for income-focused financiers.
Top Holdings
A diverse portfolio is important for lessening danger while guaranteeing steady growth. The top holdings in SCHD aid attain this by representing a range of sectors. Below are the top 10 holdings as of 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