VIG's valuation is still under pressure, judging by the thin yield spread relative to treasury rates. However, I see at least 2 factors that help to balance the VIG's risk profile and support a solid return potential. These factors include the outlook of interest rate cuts by 2024 and the normalization of the value-growth valuation gap.
Economic environment remains challenging with high prices, interest rates, and signs of a slowdown in consumer spending. Vanguard Dividend Appreciation Index Fund tracks S&P Dividend Growers Index, offering 73.37% total returns in 5 years. VIG fund has minimal dividend payouts, significant exposure to cyclical sectors, and may underperform in current economic conditions.
The Vanguard Dividend Appreciation ETF focuses on stocks with a strong history of growing their dividends. It isn't the highest-paying dividend ETF today, but its focus on growing income could make it ideal for long-term investors.
The Vanguard Dividend Appreciation ETF is a highly popular offering with the goal of buying dividend growers. The Vanguard High Dividend Yield ETF is a highly popular income fund with the goal of buying high-yield stocks.
Dividend payments have accounted for the majority of U.S. stock returns since 1960. These two Vanguard dividend funds are top choices for long-term investors.
Vanguard Dividend Appreciation ETF replicates the S&P US Dividend Growers Index with specific rules for stock inclusion. VIG includes stocks with low dividend yields and market cap weighting, resulting in a low overall dividend yield of 1.76%. VIG falls short as both a dividend fund and a total return fund, making it a less optimal choice for investors seeking dividend growth or total return.
VIG is a low-cost, well-diversified dividend growth fund with $93 billion in assets under management. It's a solid choice in the large-cap value category, but newer options look attractive. This article highlights VIG's fundamentals against DGRW, AVLV, PVAL, and CGDV, demonstrating that its value and growth combination is the weakest of the five. In my opinion, VIG's advantages aren't enough to outweigh its negatives, so I've decided to downgrade VIG and encourage readers to consider alternatives.
Vanguard Dividend Appreciation Index Fund ETF Shares has an impressive track record as a wealth compounded and dividend growth machine. However, it also has some major shortcomings. We discuss these shortcomings and how to add 3 high yields to a core VIG ETF position to make a better retirement dividend portfolio.
The yield on this exchange-traded fund is modest at only 1.8% or so, just a little better than the S&P 500 index. Dividends are more of a screening tool for the fund than a goal.
Vanguard Dividend Appreciation ETF is a great tool for dividend growth investing, providing diversity across sectors and a growing stream of income. VIG has a low starting yield but dollar cost averaging can lead to superior results over time. The fund focuses on companies with consistent dividend growth and has a low expense ratio of 0.06%.
U.S. companies paid record dividends in Q1 2024, with expectations of another strong period in Q2. I have a buy rating on Vanguard Dividend Appreciation Index Fund ETF Shares given its strong yield and exposure to a diversified mix of U.S. dividend payers. With a strong chart and favorable seasonal trends, I highlight key price levels to watch.