Understanding SCHD: A High Dividend-Paying Stock Worth Considering
In the complicated world of investing, dividend stocks often stick out as a beneficial choice, especially 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 focuses on high dividend-paying U.S. stocks and has acquired a following amongst income-seeking financiers. This article aims to delve deep into schd dividend value calculator, exploring its qualities, performance, and what possible financiers need to consider.
What Is SCHD?
SCHD is an exchange-traded fund (ETF) that seeks to track the efficiency of the Dow Jones U.S. Dividend 100 Index. The fund aims to offer direct exposure to high dividend-yielding stocks while also guaranteeing a step of quality. The underlying objective is not only to offer appealing yields but likewise to supply long-lasting capital appreciation.
Key Features of SCHD:FeatureDetailsFund ManagerCharles Schwab Investment ManagementInception DateOctober 20, 2011Cost Ratio0.06%Dividend YieldApproximately 4.0% (since the current quarter)Top Sector ExposuresInfotech, Consumer Discretionary, Health CareAverage Market CapMid to large-cap companiesEfficiency Insights
Investors frequently take a look at both historic performance and current metrics when thinking about any financial investment. Below is a contrast of SCHD's efficiency against the more comprehensive market and its peer group over numerous amount of time.
Performance TablePeriodSCHD Total ReturnS&P 500 Total ReturnComparison1 Year12.4%8.6%schd dividend per share calculator outshined3 Years45.3%56.2%SCHD lagged slightly5 Years92.1%104.5%SCHD lagged somewhatSince Inception209.3%205.0%SCHD somewhat outshined
These metrics highlight that SCHD has actually shown significant total returns, especially considering that its beginning. While it might not regularly outshine the S&P 500 over every time frame, its capability to yield dividends regularly makes it a worthy prospect for income-focused financiers.
Top Holdings
A varied portfolio is vital for minimizing danger while ensuring constant growth. The top holdings in SCHD help achieve this by representing a range of sectors. Below are the top 10 holdings as of the latest 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