Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the intricate world of investing, dividend stocks typically stand out as a favorable option, particularly for individuals looking for to make 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 acquired a following among income-seeking investors. This blog post aims to dive deep into schd dividend growth rate, exploring its qualities, performance, and what prospective investors should 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 likewise ensuring a step of quality. The underlying goal is not only to offer attractive yields but likewise to supply long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementBeginning DateOctober 20, 2011Expenditure Ratio0.06%Dividend YieldApproximately 4.0% (since the recent quarter)Top Sector ExposuresInformation Technology, Consumer Discretionary, Health CareTypical Market CapMid to large-cap companiesPerformance Insights
Financiers often look at both historic efficiency and current metrics when thinking about any financial investment. Below is a comparison of SCHD's efficiency versus the wider market and its peer group over different time frames.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%SCHD exceeded3 Years45.3%56.2%SCHD lagged somewhat5 Years92.1%104.5%schd dividend history calculator lagged somewhatConsidering that Inception209.3%205.0%SCHD slightly exceeded
These metrics highlight that SCHD has actually shown considerable total returns, especially because its inception. While it may not regularly outshine the S&P 500 over whenever frame, its capability to yield dividends regularly makes it a worthwhile prospect for income-focused financiers.
Top Holdings
A diverse portfolio is crucial for decreasing threat while guaranteeing stable growth. The top holdings in SCHD assistance accomplish this by representing a variety of sectors. Below are the top 10 holdings as of the current 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