The Schwab U.S. Dividend Equity ETF (SCHD), which tracks high-dividend U.S. stocks in the Dow Jones U.S. Dividend 100 Index, lost 0.06% in pre-market trading on Thursday.
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Overall, SCHD has gained 0.55% over the past five days and 13% year-to-date, as steady dividend income and its focus on mature companies with stable cash flows continue to support the fund.
SCHD’s Price Forecasts and Holdings
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, SCHD is a Moderate Buy. The Street’s average price target of $34.88 implies an upside of 13.01%.
Currently, SCHD’s five holdings with the highest upside potential are:
- Ares Management (ARES)
- Insperity (NSP)
- Nexstar Media Group (NXST)
- Broadridge Financial Solutions (BR)
- Fidelity National Financial (FNF)
Meanwhile, its five holdings with the greatest downside potential are:
- APA Corp. (APA)
- Cohen & Steers (CNS)
- Oxford Industries (OXM)
- Archer Daniels Midland (ADM)
- Murphy Oil (MUR)
Revealingly, SCHD ETF’s Smart Score is seven, implying that this ETF will likely perform in line with the market.
Does SCHD Pay Dividends?
Yes, SCHD pays dividends on a quarterly basis, using the cash income generated by its underlying holdings. In fact, the ETF is a dividend specialist, meaning it only owns companies with at least 10 years of consistent payments. The fund currently offers a yield of about 3.45%, compared with roughly 1.18% for the Vanguard S&P 500 ETF (VOO), which tracks the S&P 500 (SPX).