Schwab U.S. Dividend Equity ETF (SCHD)

• Large-cap U.S. companies: The stock is selected from Dow Jones U.S. Dividend 100 Index with a proven history of dividend payments.

• Financial metrics: The selection process considers four crucial financial metrics:

  • Dividend History: Companies must have a history of consistent dividend payments, typically 10 consecutive years or more.  Companies with a history of increasing dividends are favored.

  • Financial Strength: The index prioritizes companies with strong fundamentals, such as:

    • Low debt-to-equity ratios: Indicating financial stability.

    • High return on equity (ROE): Demonstrating efficient use of shareholder capital.

  • Market Capitalization and Liquidity: The index typically includes larger, more established companies with sufficient liquidity for trading.

• Dividend yield weighting: Companies are weighted within the index based on their dividend yields, with higher-yielding stocks receiving a greater allocation.

• Annual reconstitution: The index undergoes annual reconstitution in March to ensure the portfolio remains aligned with top performers.

SCHD Sector Distributions

• Financials 18.20%

• Health Care 15.83%

• Consumer Staples 14.02%

• Industrials 13.45%

• Energy 11.92%

• Consumer Discretionary 9.71%

• Information Technology 8.80%

• Communication Services 4.92%

• Materials 3.11%

• Utilities 0.04%

SCHD Holding By Sector (list of holdings)

Financials

• BlackRock, Inc. (BLK): 4.62%

• U.S. Bancorp (USB): 3.10%

• Fidelity National Financial, Inc. (FNF): 0.60%

• Huntington Bancshares Incorporated (HBAN): 0.96%

• Regions Financial Corporation (RF): 0.88%

• KeyCorp (KEY): 0.66%

• Cincinnati Financial Corporation (CINF): 0.92%

• East West Bancorp, Inc. (EWBC): 0.55%

Health Care

• Bristol-Myers Squibb Company (BMY): 4.36%

• Pfizer Inc. (PFE): 3.46%

• AbbVie Inc. (ABBV): 3.40%

• Amgen Inc. (AMGN): 3.21%

Consumer Staples

• PepsiCo Inc. (PEP): 3.45%

• The Coca-Cola Company (KO): 3.41%

• Altria Group, Inc. (MO): 3.63%

• Kimberly-Clark Corporation (KMB): 1.70%

• Hershey Co (HSY): 1.04%

• Darden Restaurants, Inc. (DRI): 0.76%

• Packaging Corporation of America (PKG): 0.82%

• Amcor PLC (AMCR): 0.56%

Industrials

• Caterpillar Inc. (CAT): 1.20%

• United Parcel Service, Inc. (UPS): 0.90%

• Fastenal Company (FAST): 0.85%

• Watsco, Inc. (WSO): 0.65%

• C.H. Robinson Worldwide, Inc. (CHRW): 0.60%

• Snap-on Incorporated (SNA): 0.55%