Vanguard Dividend Appreciation ETF: The ETF For Future Income
- VIG is a low cost fund with a solid history of dividend growth.
- VIG holds financially superior firms that have greater ability to increase dividends.
- VIG outperforms during periods of economic and financial stress.
Forecasting Dividend Growth Of The Top 25 Holdings Of Vanguard Dividend Appreciation ETF
- VIG is an ETF offered by Vanguard to allow for investment in companies with a record of growing dividends over a number of years.
- The top 25 holdings comprise 61% of assets.
- The forecast dividend growth of the top 25 holdings passes the sniff test.
This Dividend ETF Just Got A Steroid Injection
- Nasdaq recently announced its annual changes to the Dividends Achievers Indexes.
- The new index additions have both higher yield and dividend growth than the current index constituents.
- The new index additions will help to further strengthen the Vanguard Dividend Appreciation ETF.
Vanguard Dividend Appreciation ETF Is A Buy In 2014
- Will benefit from continued investor interest in dividend paying companies and funds.
- Expect to see dividend payouts rise by many major U.S. companies this year, which will directly benefit VIG.
- Provides diversification at a fraction of the cost of traditional mutual funds.
Separating The Yield From The Chaff With Vanguard's VIG
Hold Off On VIG For Now: A Better Opportunity Will Come Along
A Closer Look At The Vanguard Dividend Appreciation ETF
The Case Against Using The VIG As A Dividend Growth Proxy
3 Reasons To Buy Blue-Chip Dividend Stocks Right Now
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Fri, Sep. 19, 3:09 PM| 1 Comment
Thu, Sep. 18, 1:05 PM
- The C-Tracks Exchange Traded Notes Miller/Howard Strategic Dividend Reinvestor (NYSEARCA:DIVC) will an index of 30 equal weighted domestic stocks, selected for their current dividend yield and the expected growth of that yield, along with other fundamental indicators.
- "Whereas traditional market cap-weighted indexes tend to overweight overvalued stocks, we try to improve on the model by equal weighting and limiting selection to companies that share positive factors such as dividend growth, yield, valuation, and profitability—all through a disciplined rules-based process with regular rebalancing" said Lowell G. Miller, founder and CIO of Miller/Howard, in a press release for the new index.
- Other dividend growth ETFs: VIG, SDY, NOBL, DGRW, PFM, RDVY, DGRO
Fri, Jun. 20, 8:01 AM| 2 Comments
Wed, Apr. 9, 12:14 PM
- According to S&P Dow Jones, 1,078 companies boosted dividends in Q1, 14.2% more than a year ago, and besting the previous record of 1.069 set in 1979. The dollar amount of increases foots to $17.8B, 22.9% higher than a year ago. A few cut payouts - 102 out of roughly 10K traded issues, and down from 139 a year ago.
- The weighted dividend yield grew 4 basis points during the quarter to 2.48%, says S&P's Howard Silverblatt. Room to grow even more? Payout ratios continue to scrape by at 36% vs. their historic average of 52%.
- Dividend ETFs: DVY, VIG, SDY, VYM, SCHD, HDV, KBWD, DES, NOBL, PEY, DIV, SPHD, DLN, DHS, DTD, DON, FDL, DGRW, FVD, PFM, SDYL, DVYL, DGRS, RDIV, RDVY, QDF, QDEF, QDYN, QINC
Fri, Mar. 21, 12:22 PM| Comment!
Fri, Mar. 14, 11:39 AM
- The First Trust Value Line Dividend Index ETF (FVD +0.2%) has done its job well, writes Morningstar's Abby Woodham, but the 70 basis point expense ratio is "a relic of the days before the ETF price wars." It may have been acceptable a decade ago, but is "unjustifiable" when similar ETFs are available for just a handful of basis points per year.
- FVD's portfolio looks like a low-vol strategy that emphasizes yield, she writes, and the 5-year standard deviation is one of the lowest among dividend ETFs.
- Possible alternatives: Vanguard Dividend Appreciation (VIG +0.1%) with 0.10% expenses, Vanguard High Dividend Yield Index (VYM -0.1%) also charging 10 bps, Schwab U.S. Dividend Equity ETF (SCHD +0.1%) - the cheapest in the category at 0.07% - SPDR S&P Dividend (SDY +0.1%) with 0.35% expenses, WisdomTree Equity Income (DHS) with 0.38% expenses, and iShares Select Dividend (DVY +0.3%) charging 0.40%.
- ETFs: DVY, VIG, SDY, VYM, SCHD, HDV, KBWD, DES, PEY, DIV, SPHD, DLN, DHS, DTD, DON, DGRW, FDL, NOBL, FVD, PFM, SDYL, DVYL, DGRS, RDIV, RDVY, QDF, QDYN, QDEF
Fri, Mar. 7, 2:37 PM
- Vanguard filed paperwork this morning with the SEC requesting permission to add active ETFs to its lineup.
- The first active ETFs could be based on the following popular mutual funds: Vanguard Wellington (VWELX), Vanguard Explorer (VEXPX) and Vanguard Wellesley Income Fund (VWINX); the filing also included a number of muni-bond funds.
- Active ETFs seem to an emerging trend, as a number of firms have recently filed for SEC permission to offer these funds to investors.
- Vanguard's most popular ETFs: VTI, VWQ, VNQ, VEW, VIG, BND
Mon, Feb. 24, 3:35 PM
- Comparing metrics for the two of the more popular dividend strategies - the SPDR S&P Dividend ETF (SDY +0.4%) and the Vanguard Dividend Appreciation ETF (VIG +0.7%) - against the two largest large-cap value ETFs - the Russell 1000 Value ETF (IWD +0.9%) and Vanguard's Value ETF (VTV +0.7%) - Larry Swedroe finds valuations quite stretched for the dividend players.
- The SDY sports a P/E ratio of 17.2x, price/book ratio of 2.5x, and price/cash flow ratio of 10.5x, with the VIG showing similar. The value ETFs have P/E below 14x, price/books below 2x, and price/cash flow below 6x.
- The popularity of dividends has led to a pleasing rise in the values of the stocks, but has thus reduced expected future returns, reminds Swedroe. And for taxable accounts, it's even worse as dividends are less tax-efficient than capital gains.
- Dividend ETFs: DVY, VIG, AMLP, SDY, VYM, AMJ, BDCL, SCHD, HDV, MLPL, YMLP, KBWD, BDCS, DES, PEY, MLPI, SPHD, DIV, DLN, DHS, MLPA, ENY, DTD, DGRW, DON, MLPN, FDL, NOBL, FVD, PFM, EMLP, MLPS, BIZD, MLPG, MLPY, MLPX, MLPJ, SDYL, AMU, YMLI, DVYL, ATMP, DGRS, ZMLP, RDIV, RDVY, MLPW, IMLP, QDYN, ENFR, QDF, QDEF, MLPC
Sat, Jan. 11, 9:00 AM
- Ranking about dead last a year ago in Barron's handicapping of where to go for yield, municipal bonds climb nearly to the top for 2014. Long-term issues yield 4.5-5%, towering over the 30-year Treasury at 3.8% ... and don't forget the tax exemption. Credit worries are high, but the "real news is that the credit profile of local governments throughout the U.S. will improve as property valuations rise, local sales and income-taxes increase, and major reform of public employee pension plans accelerates," says John Loffredo, co-manager of the MacKay Shields Municipal High Yield Fund.
- A few closed-end funds trading at discounts to NAV: NIO, NVG, BTT, NPM, NRK, MUC, VCV, NEA, NMA, NAD, ETX, BKN
- Muni ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, MLN, HYMB, CMF, BABZ, BABS, XMPT, SHM, SUB, PRB, SMB, PZT, NYF, CXA, PWZ, PVI, SMMU, MUAF, INY, MUAD, MUAG, MUAE, VRD, MUAC, GMMB, RVNU
- Topping the list are the best performers from last year: dividend stocks. Even after a big rally, plenty of blue chips yield more than the 10-year Treasury and payouts are still low, says S&P's Howard Silverblatt, who sees a double-digit rise in cash payouts this year.
- Dividend ETFs: DVY, IDV, VIG, SDY, VYM, SDIV, HDV, SCHD, DWX, KBWD, PID, DES, DTN, PEY, SPHD, DIV, DHS, DLN, LVL, DTD, DGRW, DON, FDL, FVD, PFM, FGD, NOBL, DOO, DOL, SDYL, DVYL, DEW, IDOG, HGI, DGRS, DNL, DGRE, DVYA, RDIV, QDF, RDVY, QDEF, QDYN, IQDF, EMDG, IQDY, WDIV, IQDE, FIEG
- Near the bottom of the list this year after a big move in 2013 are MLPs, which trade for nearly twice the valuation of utilities and telecom, based on Enterprise Value/EBITDA. Yields are tasty at 5.5%, but many MLPs barely cover their payouts - a contrast to the vast majority of dividend-paying corporations. Stick with MLPs comfortably covering their distributions like EPD and PAA.
- MLP ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPS, MLPG, MLPY, MLPJ, MLPX, AMU, YMLI, ATMP, MLPW, IMLP, ENFR, MLPC
Tue, Jan. 7, 12:05 PM
- Q4 net dividend increases of $12.7B compared to $8.4B in 2012 Q4, according to S&P. The number of increases (885), however, pales in comparison to the 1,266 "tax-incentivized" hikes from a year ago (there were 649 in 2011).
- Of roughly 10K traded stocks, 51 companies cut payouts in Q4 compared to 154 in the year-earlier quarter.
- Room for more hikes? S&P's Howard Silverblatt notes payout rates - which historically average 52% - continue to remain near their low of 36%. "At this point, we expect Q1 to be a very busy positive period for dividends, with 2014 setting another record for payments."
- The weighted dividend yield off 2.44% compares to 2.6% in Q3 and 2.8% in Q4 of 2012 as boosted payouts aren't quite keeping pace with the strong advance in equity prices.
- Dividend ETFs: DVY, IDV, VIG, SDY, VYM, SDIV, HDV, SCHD, DWX, KBWD, PID, DES, DTN, PEY, SPHD, DIV, DHS, DLN, LVL, DTD, DGRW, DON, FDL, FVD, PFM, FGD, DOO, NOBL, DOL, SDYL, DVYL, DEW, IDOG, HGI, DGRS, DNL, DGRE, DVYA, RDIV, QDF, QDEF, QDYN, EMDG, IQDF, IQDY, IQDE, WDIV, FIEG
Thu, Jan. 2, 3:03 PM
- The First Trust High Income ETF (FTHI) and Low Beta Income ETF (FTLB) will use index options as a complement to its equity holdings.
- The Nasdaq Rising Dividend Achievers ETF (RDVY) tracks an index of 50 companies with a history of raising payouts, and "that exhibit the characteristics to potentially continue doing so in the future."
- Nasdaq indices are used in a number of well-followed dividend ETFs such as PowerShares' High Yield Dividend Achievers Portfolio (PEY) and PowerShares' Dividend Achievers Portfolio (PFM).
- For its part, FirstTrust's other dividend ETFs include the Nasdaq Technology Index Fund (TDIV) and the Value Line Dividend Index Fund (FVD).
- Dividend ETFs: DVY, IDV, VIG, SDY, VYM, SDIV, HDV, SCHD, DWX, KBWD, PID, DES, DTN, PEY, SPHD, DIV, DHS, DLN, LVL, DTD, DGRW, DON, FDL, PFM, FVD, FGD, DOO, NOBL, DOL, SDYL, DVYL, DEW, IDOG, HGI, DGRS, DNL, DGRE, DVYA, RDIV, QDF, QDEF, EMDG, QDYN, IQDF, IQDY, IQDE, WDIV, FIEG
Dec. 19, 2013, 2:31 PM| Comment!
Nov. 26, 2013, 11:22 AM
- In the battle for investor dollars among dividend ETFs, Vanguard's Dividend Appreciation ETF (VIG) has soared past iShares' Select Dividend ETF (DVY) and SSgA's SPDR S&P Dividend ETF (SDY) on both an absolute basis and a s a percentage of AUM.
- From May: Vanguard lowers fees on VIG
- The lesser-known Global X SuperDividend ETF (SDIV) has nearly doubled its AUM this year and - at less than 3 years old - is knocking on the door of $1B in assets despite inconsistent performance. Investors desire for income is certainly a boost as is the fund's equal-weighting approach and monthly payout - which fluctuated wildly in 2012, but has settled into a tight range this year.
- Dividend ETFs: DVY, VIG, SDY, VYM, HDV, SCHD, SYLD, KBWD, DES, PEY, SPHD, DHS, DIV, DLN, DTD, DGRW, FDL, DON, PFM, FVD, NOBL, SDYL, DVYL, DNL, DGRS, DGRE, RDIV, QDF, QDEF, EMDG, QDYN
Nov. 15, 2013, 9:22 AM
- Dividend ETF fans may soon have three more funds to choose from as Reality Shares files to launch a trio of ETFs. Tickers and fees have not yet been disclosed.
- The Reality Shares Isolated U.S. Dividend Growth Index ETF and The Isolated Global Dividend Growth Index ETF will both be passive strategies, and the Isolated Dividend Growth ETF will be actively managed.
- The company's edge - so it argues - will be a focus on earnings rather than stock price as the measure of potential returns. Isolating the dividend from the stock price can provide positive returns not directly correlated to broader equity or fixed-income trends, says the company.
- Dividend ETFs: DVY, IDV, VIG, SDY, VYM, SDIV, HDV, SCHD, DWX, SYLD, KBWD, PID, DES, DTN, PEY, SPHD, DIV, DHS, LVL, DLN, DTD, DGRW, FDL, DON, PFM, FVD, FGD, DOO, DOL, SDYL, NOBL, DVYL, DEW, HGI, IDOG, DNL, DGRS, DGRE, DVYA, RDIV, QDF, QDEF, EMDG, IQDF, QDYN, IQDY, WDIV, IQDE, FIEG
Oct. 23, 2013, 2:58 PM
- Assets in dividend-themed ETFs have ballooned nearly 50% to $80B this year, according to Ned Davis Research, led by Vanguard Dividend Appreciation (VIG) with $3.2B in inflows, the SPDR Dividend ETF (SDY) with $1.2B, and the Vanguard High Dividend Yield ETF (VYM) with $1.6B.
- Meanwhile, ETFs holding U.S. government debt hold just $67B in assets, with funds like the iShares 3-7 Year Treasury Bond ETF (IEI) seeing several hundred million exit, and the iShares TIPS Bond ETF (TIP) losing a whopping $6.9B.
- The team at Ned Davis recommends looking away from the popular dividend plays and towards a lagging emerging-market alternative, the WisdomTree Emerging Markets Small-Cap Dividend Fund (DGS), yielding 3.3% and up 3.8% this year.
- Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO, DGRS, DNL, EMDG, DGRW, VIG, DGRE.
- Global dividend ETFs: AXJL, AUSE, GNAT, DTH, DWM, SDIV, DVYE, EDIV, DEM, FDD, FGD, LVL, PID, DEW, WDIV, IDOG, DTN, DOO, IQDF, IQDE, IQDY, IDV, DVYA, DWX, DOL, CCXE, DIM, GULF, DRW, DBU.
- Small-cap dividend ETFs: DGS, DFE, DFJ, DXJS, DES, DLS.
Oct. 21, 2013, 3:05 PM
- Dividend stocks have historically worked because of their value tilt, says ace researcher and portfolio manager Mebane Faber. A rash of fund offerings have distorted the asset class though - typically trading at a 20-40% valuation discount to the broad market, high yielders from defensive sectors are now at premiums, and record premiums at that. Buyer beware.
- Faber himself runs the actively-managed Cambria Shareholder Yield ETF (SYLD), which adds buybacks and debt repayments to dividends to create a "shareholder yield" from which selections are made.
- Dividend ETFs: VIG, FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
VIG vs. ETF Alternatives
Vanguard Dividend Appreciation ETF seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that have a record of increasing dividends over time.
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