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Understanding SCHD: A High Dividend-Paying Stock Worth Considering<br>In the complex world of investing, dividend stocks often stand apart as a beneficial alternative, especially for people seeking to earn passive income. One of the standout gamers in this domain is the Schwab U.S. Dividend Equity ETF ([schd high Dividend-Paying stock](https://www.adamclubs.top/finance/understanding-dividend-yield-calculators-a-comprehensive-guide/)). This exchange-traded fund focuses on high dividend-paying U.S. stocks and has gotten a following amongst income-seeking financiers. This post aims to dive deep into SCHD, exploring its characteristics, performance, and what possible investors ought to consider.<br>What Is SCHD?<br>SCHD 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 supply direct exposure to high dividend-yielding stocks while also guaranteeing a procedure of quality. The underlying objective is not only to offer appealing yields but likewise to supply long-term capital gratitude.<br>Key Features of SCHD:FeatureInformationFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expense Ratio0.06%Dividend YieldApproximately 4.0% (as of the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesEfficiency Insights<br>Investors frequently take a look at both historic efficiency and current metrics when considering any investment. Below is a contrast of SCHD's performance versus the broader market and its peer group over different time frames.<br>Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnContrast1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatConsidering that Inception209.3%205.0%SCHD a little outperformed<br>These metrics show that SCHD has actually revealed substantial total returns, especially considering that its creation. While it may not regularly exceed the S&P 500 over every time frame, its capability to yield dividends regularly makes it a worthwhile prospect for income-focused investors.<br>Top Holdings<br>A varied portfolio is important for reducing threat while guaranteeing constant growth. The top holdings in SCHD assistance attain this by representing a range of sectors. Below are the top 10 holdings since the latest 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 & |
