VDIGX
VANGUARD DIVIDEND GROWTH FUND INVESTOR SHARES
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Beginning Automatic Investing: Need direction
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I own a significant holding in a dividend index fund (VDIGX). The rate of return seems to consistently trail the market, especially the last 3 years. Should I sell it all and buy something like VTSAX? This is about 1/8th of my portfolio-a significant dollar value. I thought dividend funds were a great idea- as I learn more I think I may have been foolish and I should switch to an SnP 500 type index.
Keep in mind VDIGX empisises growth more than dividned. Small increases in dividend will cause a corresponding increase in share price. So in the long term the yield will stay about the same. If you work out the math a small increase in dividend results in a larger share price increase. The yield of the fund you are looking at is 1.7%. So to get about 5K a month of dividend income run the fund it would have to grow to about 3.5 million. It will take a lot of time to get that much money. Many invest in S&P500 index with its 1.3% dividend and many never get to 3.5 million invested. VDIGX is not really a dividend fund. It is just another index fund. IF you however invited in UTG 6.7% dividend, you would only need about 900K to get about 5K a month. Or you could invest in QQQI 13% yield and retire with 500,000 in the fund with 5K a month of income. Most people with a roth or 401K can achieve 5K a month with 10% yield in about 20 years. Many say if you are young invest in growth funds. The main reason for this is the assumption that dividends will have a lower total return the growth funds. his is true if you assume the maximum safe yield is 5% But there are a lot of funds out there that reliably produce between 5 and 10% yields And at yields of about 10% the long term potential total return is about the same as the S&p500.
> So, would you be able to grant that buying VDIGX when you expect VUG to tank can be logical? No; that makes no sense to me on several levels. Backwards even. One in that it's coming across that you're market timing or have a crystal ball of prediction. Two, a recession and downturn is something to *embrace.* If I did have that crystal ball and knew that VIGIX was going to tank sometime soon, I'd be putting 100% of my contributions into it.
I take that point and grant it. Dividend funds are recession resistant, even more so than value funds. Since I somewhat expect a poor economy, I’m wanting to chill on growth at least until I get a confirmation above ATH. So, would you be able to grant that buying VDIGX when you expect VUG to tank can be logical?
Play it safer with: Vanguard Target-Date Funds, pick your retirement year. They handle diversification for you and get more conservative over time. S&P 500 Index FXAIXor Dividend Stocks VDIGX– Big, stable companies hold up better. Bonds FXNAX or VIPIX– Boring but reliable when markets freak out. Skip or go light on small caps, international stocks, and energy, they’re rollercoasters right now. But that’s just my option from my anxiety riddled brain.
The basic comparison between VOO and a fund such as VDIGX (Vanguard Divident Growth) is that the growth in your investments (that is, the series of deposits you make over time) depends upon the basic operations of the ETF. The growth of VOO is tied primarily to the overall growth of the stock market. That is to say, stock prices. VDIGX, on the other hand, grows as a result of the both the stock price and the accumulation of additonal shares of stock purchased within the fund from the dividends paid. The thing about an S&P 500 index fund is that while you own the top performing 10% of the S&P 500, you also own the bottom 10% of the S&P. A fund such as the VDIGX screens for the amount and consistency of the dividends a company is likely to pay. While fund managers are far from perfect in their jobs, even a managers hitting on 50% of their picks still get the advantage of accumulating more shares through reinvesting dividend payments. I've held VDIGX for years and found it a very productive holding in my overall portfolio.
I started taking over my wife's finances. She has a 401k matching. looked over everything that her wok established for her. Seems balanced for most part. But I think she coul do without the two small caps and target date fund. But 1 would like to hear from those who are well versed in creatin a solid portfolio? Her current funds are listed below. We are medium risk people-. Plus as a side note: I am not familiar with vanguard, and it seems like their platform (especially the app) is not that user friendly. VSMAX, VDADX VFIAX VSGAX VTIVX VBIAX VDIGX VIMAX
I'm not trying to be rude, but you seem to be misusing the term "index investing". An index is just a collection of stocks. There are index funds that specifically track dividend paying stocks (e.g. [VDIGX](https://advisors.vanguard.com/investments/products/vdigx/vanguard-dividend-growth-fund#overview)). I'm guessing you're asking about people transitioning from dividend investing to broad-market investing with no particular focus on dividends? Is that correct?
There are plenty of growth dividend mutual funds. They’re a great balance of growth and dividend. As an example VDIGX Take others opinions poopooing dividend with a grain of salt. Growth can do no wrong right now but there are periods it can be not so great. If you’re looking at specific stocks strictly for dividend I’d table that effort for mutual funds for diversification.
¯\\\_(ツ)\_/¯ - DIVG doesn't seem to track VDIGX. [yahoo.com - comparison of DIVG to VDIGX](https://finance.yahoo.com/quote/DIVG/chart/#eyJsYXlvdXQiOnsiaW50ZXJ2YWwiOiJ3ZWVrIiwicGVyaW9kaWNpdHkiOjEsInRpbWVVbml0IjpudWxsLCJjYW5kbGVXaWR0aCI6NjAuODkzMDIwNjE2OTc2NTksImZsaXBwZWQiOmZhbHNlLCJ2b2x1bWVVbmRlcmxheSI6ZmFsc2UsImFkaiI6dHJ1ZSwiY3Jvc3NoYWlyIjp0cnVlLCJjaGFydFR5cGUiOiJtb3VudGFpbiIsImV4dGVuZGVkIjpmYWxzZSwibWFya2V0U2Vzc2lvbnMiOnt9LCJhZ2dyZWdhdGlvblR5cGUiOiJvaGxjIiwiY2hhcnRTY2FsZSI6InBlcmNlbnQiLCJwYW5lbHMiOnsiY2hhcnQiOnsicGVyY2VudCI6MSwiZGlzcGxheSI6IkRJVkciLCJjaGFydE5hbWUiOiJjaGFydCIsImluZGV4IjowLCJ5QXhpcyI6eyJuYW1lIjoiY2hhcnQiLCJwb3NpdGlvbiI6bnVsbH0sInlheGlzTEhTIjpbXSwieWF4aXNSSFMiOlsiY2hhcnQiXX19LCJzZXRTcGFuIjp7Im11bHRpcGxpZXIiOjIsImJhc2UiOiJ5ZWFyIiwicGVyaW9kaWNpdHkiOnsiaW50ZXJ2YWwiOjEsInBlcmlvZCI6MSwidGltZVVuaXQiOiJ3ZWVrIn0sInNob3dFdmVudHNRdW90ZSI6dHJ1ZSwiZm9yY2VMb2FkIjpmYWxzZSwidXNlRXhpc3RpbmdEYXRhIjp0cnVlfSwib3V0bGllcnMiOmZhbHNlLCJhbmltYXRpb24iOnRydWUsImhlYWRzVXAiOnsic3RhdGljIjp0cnVlLCJkeW5hbWljIjpmYWxzZSwiZmxvYXRpbmciOmZhbHNlfSwibGluZVdpZHRoIjoyLCJmdWxsU2NyZWVuIjp0cnVlLCJzdHJpcGVkQmFja2dyb3VuZCI6dHJ1ZSwiY29sb3IiOiIjMDA4MWYyIiwic3ltYm9scyI6W3sic3ltYm9sIjoiRElWRyIsInN5bWJvbE9iamVjdCI6eyJzeW1ib2wiOiJESVZHIiwicXVvdGVUeXBlIjoiRVRGIiwiZXhjaGFuZ2VUaW1lWm9uZSI6IkFtZXJpY2EvTmV3X1lvcmsiLCJwZXJpb2QxIjoxNTA3NTIxNjAwLCJwZXJpb2QyIjoxNzIyMjcyNDAwfSwicGVyaW9kaWNpdHkiOjEsImludGVydmFsIjoid2VlayIsInRpbWVVbml0IjpudWxsLCJzZXRTcGFuIjpudWxsfSx7InN5bWJvbCI6IlZESUdYIiwic3ltYm9sT2JqZWN0Ijp7InN5bWJvbCI6IlZESUdYIn0sInBlcmlvZGljaXR5IjoxLCJpbnRlcnZhbCI6IndlZWsiLCJ0aW1lVW5pdCI6bnVsbCwic2V0U3BhbiI6bnVsbCwiaWQiOiJWRElHWCIsInBhcmFtZXRlcnMiOnsiaXNDb21wYXJpc29uIjp0cnVlLCJjb2xvciI6InJnYmEoMjQ0LCA5NiwgMTU5LCAxLjAwKSIsImdhcERpc3BsYXlTdHlsZSI6dHJ1ZSwic2hhcmVZQXhpcyI6dHJ1ZSwiY2hhcnROYW1lIjoiY2hhcnQiLCJzeW1ib2xPYmplY3QiOnsic3ltYm9sIjoiVkRJR1gifSwicGFuZWwiOiJjaGFydCIsImZpbGxHYXBzIjpmYWxzZSwiYWN0aW9uIjoiYWRkLXNlcmllcyIsInN5bWJvbCI6IlZESUdYIiwibmFtZSI6IlZESUdYIiwib3ZlckNoYXJ0Ijp0cnVlLCJ1c2VDaGFydExlZ2VuZCI6dHJ1ZSwiaGVpZ2h0UGVyY2VudGFnZSI6MC43LCJvcGFjaXR5IjoxLCJoaWdobGlnaHRhYmxlIjp0cnVlLCJ0eXBlIjoibGluZSIsInN0eWxlIjoic3R4X2xpbmVfY2hhcnQiLCJoaWdobGlnaHQiOmZhbHNlfX1dLCJzdHVkeUxlZ2VuZCI6eyJleHBhbmRlZCI6dHJ1ZX0sInN0dWRpZXMiOnt9LCJyYW5nZSI6bnVsbH0sImV2ZW50cyI6eyJkaXZzIjp0cnVlLCJzcGxpdHMiOnRydWUsInRyYWRpbmdIb3Jpem9uIjoibm9uZSIsInNpZ0RldkV2ZW50cyI6W119LCJwcmVmZXJlbmNlcyI6eyJjdXJyZW50UHJpY2VMaW5lIjp0cnVlLCJkaXNwbGF5Q3Jvc3NoYWlyc1dpdGhEcmF3aW5nVG9vbCI6ZmFsc2UsImRyYXdpbmdzIjpudWxsLCJoaWdobGlnaHRzUmFkaXVzIjoxMCwiaGlnaGxpZ2h0c1RhcFJhZGl1cyI6MzAsIm1hZ25ldCI6ZmFsc2UsImhvcml6b250YWxDcm9zc2hhaXJGaWVsZCI6bnVsbCwibGFiZWxzIjp0cnVlLCJsYW5ndWFnZSI6bnVsbCwidGltZVpvbmUiOiJBbWVyaWNhL05ld19Zb3JrIiwid2hpdGVzcGFjZSI6NTAsInpvb21JblNwZWVkIjpudWxsLCJ6b29tT3V0U3BlZWQiOm51bGwsInpvb21BdEN1cnJlbnRNb3VzZVBvc2l0aW9uIjpmYWxzZX19) And I don't see a reference in the VDIGX prospectus that claims to track the S&P 500 High Dividend Growth index. According to the S&P web site - DIVG is the only fund that is licensed to use the S&P 500 High Dividend Growth index - [https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-500-high-dividend-growth-index/#index-linked-product](https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-500-high-dividend-growth-index/#index-linked-product)
I don't think that DIVG tracks the same index as VDIGX. The tracking error between the 2 funds look pretty high. And the portfolio construction looks very different.
It's not exactly clear from the prospectus which index VDIGX attempts to track. It looks like an internal Vanguard index. If you like S&P index products - there are a few products that track both the S&P US Dividend Growth Index and the S&P US High Dividend Growth Index. When you want to look up fund products that license and track an S&P index - you can find them on the index-linked products section of the S&P Dow Jones Index site: Examples: [https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-us-dividend-growers-index/#index-linked-product](https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-us-dividend-growers-index/#index-linked-product) [https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-500-high-dividend-index/#index-linked-product](https://www.spglobal.com/spdji/en/indices/dividends-factors/sp-500-high-dividend-index/#index-linked-product) List of S&P Dividend Indices if you want to explore other interlinked products tied to different S&P indices: [https://www.spglobal.com/spdji/en/landing/investment-themes/dividends/](https://www.spglobal.com/spdji/en/landing/investment-themes/dividends/)
> VDIGX Yield 1.74% Good lord that seems pathetic. I'm getting more than twice that amount in a risk free HYSA. The fed would have to cut 13 times before the yield in risk free will be lower than this. I feel like a dividend play with such a low yield is a bet on ZIRP returning, in which case that 1.74 will look pretty attractive in a couple of years. I get that getting in now is the right move if it goes to ZIRP again. I checked another few dividend funds to see if maybe you just picked a dog but they're all sitting under 2% yield. They haven't run up lately, they're just not yielding much. VIDGX in fact has langushed for 2 years but it's still got a quite low yield. I have to say, when you mentioned it I thought "yes now seems like the time" but based on the yields I'm seeing no, it probably isn't. I'd want to see them sitting above 3, maybe above 4% to get really excited.
I am a complete newbie to investing. While skimming over the book, "Random Walk down Wall Street". 12th edition, I decided to follow the strategy given there. I am purchasing index mutual funds for my Roth IRA through Fidelity. On the long run, I want to maximize my Roth IRA. For today, I am making a purchase worth $300 - $42 - FFMAX (14%) $42 - SWISX (14%) $81 - SWTSX (27%) $37.5 - FRXIX (12.5%) $15 - FXLXX (5%) $22.5 - VCLT (7.5%) $22.5 - VGAVX (7.5%) $37.7 - VDIGX (12.5%) Am I making any newbie mistake here?
In summary, two simple suggestions are to consider FDVV (dividends) and JEPQ (covered calls). My late father was a “value investor”, a former stockbroker way back in the day. He did quite well. In a low interest rate environment, he moved heavily into dividend funds, particularly VDIGX. This made a lot of sense. When the market “corrected”, the dividend-oriented funds held up better than the market as a whole (see 2022). In a high interest rate environment, I suspect the dividend funds might not hold up as well as they did in 2022. So, one option for you might be to roll into dividend funds. Personally I like FDVV. I still hold a lot of the VDIGX that I inherited, as a tip of the hat to my father. These days we have a newer tool, the covered call ETFs. I went slowly, I now feel quite comfortable with JEPQ. For me this has to be in an IRA, because JEPQ “dividends” are taxed like ordinary income (I think that’s correct?). I am retired as well. I try to keep it simple and also enjoy retirement!
It depends on whether you prefer Morningstar's rating methodology vs others. Zacks rates VDIGX a buy.
Do I need to worry about an index fund's "Morningstar rating". I have a significant holding in VDIGX (Vanguard Dividend Growth Fund Admiral shares)- about 1/7th of my portfolio, but noticed it has only a 3 star rating (out of 5).
My wife and I are fortunate in that we chose not to have children which enabled us to save a lot more than we would have otherwise. And although I did not start investing in a 401(k) until I was about 35 (I'm now nearly 75 and quite healthy), I did start studying investing before I ever had two nickels to rub together. I always stuck with broad-market ETFs (or their predecessors, mutual funds), and relied on time and compound interesting to do the rest. (If you don't know the Rule of 72, you should.) Even though our combined income never exceeded 100,000/year, today we are quite comfortable with assets around 1.4 million and growing every year. It takes a bit of discipline, a lot of steady hard work (employment), and putting your faith and trust in the American economy which is still the powerhouse of global growth. And it really helps not to do anything too stupid, like concentrating all your investments in your own company's stock or blowing a huge wad on a wedding or an over-the-top vacation or car you can't afford. And you can't live on credit. Although I have a Fidelity Visa card that I use for daily expenses (and inventory for my home business), I pay it off every month in full--sometimes 2 or 3 times a month. I get cash back every month, not stupid points or store credits. We paid our house off more than 20 years ago and keep it up. My major investments long-term have been Fidelity Contrafund FCNTX, IVV (S&P 500 ETF), Vanguard Dividend Growth VDIGX mutual fund, and FSMAX Fidelity Extended Market Index Fund. I spend about an hour a day learning about and studying investing, and I exercise regularly, eat healthy, don't drink or smoke (any more), and run several times a month (300+ miles a year). I stay active mentally as well by reading, language learning (I'm up to seven), and still singing as a soloist. My mother lived to be 100 so I am playing the long game here.
Investing routinely in diversified, low expense equity index funds is a good strategy. I would not pick VOO and SCHD, but you could do a lot worse. Vanguard does not allow auto investing in ETFs, only in Vanguard mutual funds. VFIAX is the Vanguard mutual fund equivalent of VOO. It has a $3000 minimum initial investment. Vanguard has some dividend funds, like VDADX, VDIGX, VHYAX. I don't know how similar they are to SCHD.
I don't know, but it's been really tough ever since the Fed raised rates...I mean bad, like outstanding talent that has been out of work for 6-12 months...Unheard of...None of it makes sense to me...I just keep putting investment money in dividend paying stocks (VDIGX) and money market at 5%; the floor is going to drop out of this thing, it has to
FWGIX has a pretty high fee (0.42%) AND has underperformed the SP500 and Nasdaq 100 from every timeframe for the past 5 years. VDIGX is a dividend fund which isn't a bad idea for income in retirement but the fees are also fairly high (0.30%). No comment on AFMBX, it's a balanced fund that seems....fine. Fees could be lower but aren't that bad. Really there's no reason do to much more complicated than a low-cost SP500 or total US fund and a total bond fund with increasing allocation as you near retirement.
First, great to hear that you are starting on your journey! Congrats! I'm working under the assumption that you are on the younger side (although that may be incorrect). If so, ignore what I'm saying below: I think for the most part you are ok. VDIGX and VTSAX are broad-based higher-growth index funds, and you have some international exposure with VXUS. I have two minor critiques. First, if you are on the younger side (50 and below) you probably want less exposure to bonds than you currently have. I'm 40 and bond or bond funds make up roughly 7% of my portfolio. On the upside, given that interest rates are most likely headed down, that bond fund is set to increase in value. However, as interest rates drop, the rate of return of your index funds will most likely outpace that bond fund. Second, and this is especially true if you are 40 or below, VDIGX is a *relatively* conservative investment. I believe it's 10 year return hovers at around 10.5% versus VTSAX which is 11%. Even if you're younger, it totally depends on your risk profile. Some folks just like to be more conservative with their money, and that's ok. You sacrifice a some growth for stability and peace of mind. However, if you have longer time horizons, reallocating some of your investments to higher-risk higher-return index fund (think VUG, with a 10 year return of roughly 14%) may pay off. Given that several of the funds you mention are institutional ones, you may have to see if that fund, or a similar one, is offered within your employer's 401k plan. To recap, at the very least I would reallocate some of your automatic investments away from AGG. If you drop down to 5 to 10% to AGG (or stop it altogether if you are on the younger side) you could reallocate 5% to 7% to each of your other funds. Alternatively, you could put that 15 to 20% taken from AGG into a higher-growth fund. Again, this is all my very humble opinion. I'm not a pro, just someone who has been investing for several years. Hope this helps!
I would just keep simple and use VTSAX and VXUS. VDIGX is a bit redundant as everything in that is in VTSAX. Also, you probably don’t need any bonds at this point given the size of your account and your time horizon.
>I currently have: >VDIGX, VGSLX ,VPMCX (obtained from FedEx Express), VTSAX, VTWAX VTWAX is all you need: it either fully or almost fully contains everything else there. >I'm thinking of getting rid of VDIGX and converting it to either VFIAX or VOO. I'm curious if this is a good move No, because that's already fully inside (at minimum) both VTSAX and VTWAX.
Hello, new to investing less than a year and would like opinions if I’m even on the right track with my choices… the information I read/ listen to daily is confusing honestly. - 31, F, Midwest, Income= $0 recently laid off - trying to save for first home and car, student loan repayment - I’m a contract project manager so income isn’t consistent between jobs and self funding everything(no benefits) Overview - Brokerage: VDIGX, VGHCX, VWELX, VGT (not much invested in VGT compared to the others) - Roth IRA: VGHCX, VTSAX, VWELX, VT, VTI - ROTH 401k: Fidelity : Target date 2050 Question 1: I have a large sum that’s been sitting in my checking I plan to put 25% in either VUSXX or VMFXX for emergency. - not sure which one. conflicting info found on the state tax exemptions and uninsured aspect makes me nervous vs HYSA. Leaning towards VUSXX. Thoughts to consider ? - The other 75% I’d like to invest to help facilitate a first home down payment, car and retirement. I’ve read up on I and E bonds but their returns don’t seem great comparatively. Since I got laid off, I think I need to wait 2 years of employment to qualify for a mortgage, so some of these need to be sold in a couple years to pay for that then. Question 2: of the above allocations, is there anything that doesn’t make sense? What could be better? I’ve seen people say use etfs vs mutual funds in taxable account because they’re more tax efficient but others say just invest in VT and VTSAXX and forget it. Does it matter if you have 10 different funnels or should you dump money into 2 or 3? Question 3: what cost basis should I be using? I think I have some that are avg cost, FIFO and SpecID but set my account to FIFIO now… I’m very hands off for context. I just want to set it and forget it type thing. And pop in to make some riskier investments when I’m able. Any recommendations on those? That’s why I have a little VGT. Please help if you’ve got a moment to spare. This topic is sensitive to me from life experiences/growing up so maybe that’s why I’m so nervous to make the wrong moves and be stuck forever. Lots of anxiety. But it’s been sitting for years and I know time is the most important. Much appreciated and Thank you!
his is my son's college account, he is a 9th grader so I have 4 years until I start using the money: 70K total Stocks: NVDA: 8% VRTX: 5% SFM: 6% BRK/B: 5% SWK: 10% INTC: 6% Mutual Funds VDIGX:7% SWPPX: 24% SWAGX: 14% Cash 5.6%CD: 7.17% ​ thanks!
This is my son's college account, he is a 9th grader so I have 4 years until I start using the money: Stocks: * NVDA: 8% * VRTX: 5% * SFM: 6% * BRK/B: 5% * SWK: 10% * INTC: 6% Mutual Funds * VDIGX:7% * SWPPX: 24% * SWAGX: 14% Cash * 5.6%CD: 7.17% ​ thanks!
Well, if you want to set it and forget it, I'd hire an active managed mutual fund. You don't need to get killed on fees. EG Both vanguard (through their sub, wellington) and American funds have low cost, well diversified, actively managed funds. Otherwise, in an etf or Index, you end up investing based on whichever companies are the biggest, so no management for very little cost. (so today, you're getting a third of your investment in the FAANGs and Nvidia in the s&p 500, when there are other fairly priced stocks out there) Maybe look for an all cap blend fund, like VDIGX, AMRMX or PRDGX
High Dividend Stocks usually perform better than average during tougher financial periods. Historically, 41% of stock market returns have come from dividends. Additionally, reinvesting dividends forces dollar cost averaging, which is extremely important in investing. However, we don't see the insane dividend rates we did in the 70s and 80s because companies tend to prefer stock buybacks instead (because this increases the value of the remaining shares). Instead of the historical 41%, from 1990-2022 the average return percentage of only about 14.5%. (Remember this is a percentage of total returns, not the average dividend rates. Otherwise everyone would be dividend investing). Personally, dividend-focused investing is something I'm going to entertain later in life when im getting closer to retirement and want slightly more stable returns. Additionally, if it werent in a retirement account I wouldn't entertain the idea at all. Right now you have plenty of time and in my opinion, S&P 500 or Total Market investing is our best bet. The 10-yr NAV for $VDIGX and $VTI are surprisingly pretty similar (11.8% and 11.68% respectively). However, we're in a borderline recession and dividend rates have not increased. I think a Total Market Fund ($VTI) will capture any growth whenever we get out of this, and those returns will outperform a dividend-focused fund. Either way, make sure to reinvest dividends! According to Hartford Funds, $10,000 invested in 1960 would only be worth $641,091, whereas if you reinvested dividends it'd be worth $4,053,236! So even if the focus isn't dividends, reinvest what you get. Sorry that was long and much of it is my opinion, but I hope it helps.
I only opened a Roth a couple years ago. I’m 52 and was allowed to put $7K in for 2022. I split it between PRDGX and VDIGX, which are dividend growth funds from T. Rowe Price and Vanguard. This year I was allowed to add $7500. I bought all the shares of AAPL I could (49 shares). Not sure yet what I’ll do next year. Maybe some TSLA, MSFT, AMZN, GOOGL, AMD, NVDA, TSM, more AAPL if they’re not too high. I’m probably being a bit more aggressive than others here because I became ill and then a caregiver to my elderly parents for the past 2 decades and had no “earned income”. So, my traditional IRA only has 47K in it and it’s unfortunately in a fund and brokerage my dad had chosen but I’d like to change.
I think your conclusion is suspect and I was hoping for something more robust. First off, the available data for NOBL or DIV is too short to make any definitive conclusion. And is the ticker even DIV or are you using some acronym/abbreviation I don't get? The longer the better obviously, but at least 30 years or more would be preferable. If you have a better ticker, let me know. The longest I was able to find quickly was VDIGX - Vanguard Dividend Growth Inv. I can run a back test back to 1993 with that. Again, if you have something similar to VDIGX that goes back further, I am happy to run it. If I stretch the definition to Large Cap Value and use something like VEIPX, Vanguard Equity Income Inv, I can go back to 1989. That's almost 35 years, so a better comparison. What I found myself is this: VDIGX vs. VFINX, 1993 to 2023: 9.14% for VDIGX vs. 9.09% for VFINX. Very close, but VDIGX came out higher. VEIPX vs. VFINX, 1989 to 2023: 9.48% for VEIPX vs. 9.34% for VFINX. Very close, again VEIPX came out higher. In both instances, you start with $0, contribute $6,000/year ($500/month... mimicking what someone would do if they were investing in an IRA or something), and reinvested dividends. My conclusion is the opposite of yours. On a total return basis, dividend growth investing can absolutely work and may even do better than the straight S&P 500. Here's the next rub, a lot of stocks in the S&P 500 pay a dividend. The fund has a current yield of 1.62%. So comparing dividends to the S&P 500 muddies the water quite a bit. Mortimer and Page came to a conclusion completely opposite from you: From 1972 to 2019, for components of the S&P 500, all dividend stocks returned 12.8% CAGR vs. non-dividend stocks returning 10.9%. That's a 2% difference and is huge. You can read their 2020 paper highlighting the research here: [https://www.guinnessgi.com/sites/default/files/news\_attachments/Why-Dividends-Still-Matter-April-2020.pdf](https://www.guinnessgi.com/sites/default/files/news_attachments/Why-Dividends-Still-Matter-April-2020.pdf) The other benefit of dividend stocks as they tend to be more value oriented is that they can contribute to lower maximum drawdowns. I myself do not follow a dividend strategy. I follow a risk parity style approach as I want to protect what I have and support a higher safe withdrawal rate. This is contrary to your belief and research, so it may be hard to accept. Just read the paper and see if you can poke holes in it.
I figured I might as well post here, get some feedback or spark a conversation. I am aiming for Market Level growth primarily, while also branching into dividend returns. My high risk portfolio is in crypto. I've been contributing slowly to Bonds and Inflation Protected Securities just because it helps me sleep better with my portfolio. Nothing much, just adding to it gradually. ​ IRA VTSAX - 30% VDIGX - 15% GBTC - 4% 401k Instl Total Stock Market Index - 28% Instl Total Stock Market Index International - 5% Instl Total Bond Market - 2% Inflation Protected Securities - 1% ​ Crypto - Bitcoin - 10% Ethereum - 5%
It all depends on where you buy it. Tech is still over valued today. I have a bit of my money in QQQ but not a lot. I was doing this to show someone what I did for my my mom 10 years ago... it is 3 portolios, a mixture of VTI,VYM,VOO,SCHD, CSQ which is a income CEF, and a portfolio with QQQ, starting with 5K and adding 15k a year... it isn't a drastic advantage that would warrant me putting all my eggs in one basked personally. If you look here https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2002&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=5000&annualOperation=1&annualAdjustment=15000&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=true&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VTI&allocation1\_1=25&symbol2=VYM&allocation2\_1=25&symbol3=VDIGX&allocation3\_1=25&symbol4=SCHD&allocation4\_1=25&symbol5=CSQ&allocation5\_2=100&symbol6=QQQ&allocation6\_3=100
Great choice! Since January 2012 and using a lump sum investing basis, VDIGX has performed well. Roughly 13% per year performance. This includes inflation and dividends reinvested.
32 y/o - have a regular Brokerage Account as well as a Roth IRA. My Brokerage contains VTI, VXUS, VDIGX and VSMAX. My Roth has AAPL and GOOGL. I feel like these might be backwards and that I should have funds in my roth and stocks in my brokerage account. Any insight into if this is the right path? Will most likely be adding VTI or just VT in my ROTH to help diversify some as well.
VDIGX vanguard dividend growth fund
If you had gone into VGT (Vanguard IT ETF) instead of VDIGX on 05/24/2019, you would still be up 75.46% total return, vs 44.33% total return for VDIGX. So I mean...green is green, but there's some perspective.
Yes you can choose how you want your Roth invested. If you want mutual fund of dividends then Google a few times “best dividend mutual funds” what you want to keep an eye on (besides the returns) is the expense ratio. Schwab’s symbol is SWDSX, vanguard is VDIGX with a .026 expense. Compare the five & 10 year returns. (The last year or two has been odd.) Fidelity has a similar fund. I’m sure you can find a few top 10 lists. Stick with a big name and a low expense rate with a reasonable return.
> advice on how to not lose my money Have you considered speaking with a financial advisor? Ideally a fees-based one, rather than tied to some product range. This isn't financial advice but if I was you I would probably a) have a blob of cash for emergencies, say 10-20k b) another 20k rainy day fund, something like i-bonds offer 7%+ and are run by the US treasury https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm c) you said you want dividends, so I would probably just put everything into a single broad dividend fund for an easy life rather than picking stocks. Mainly for peace of mind - you don't need to follow the news, figure out how to rebalance it etc. The market is a bit 'toppy' by a range of metrics just now so paying in 1/12 of your money every month for 12 months might be the way to go there. maybe: VDIGX or VYM or NOBL or IDV or something d) well done you are pretty much winning at life as far as finances go. Just stop YOLOing. You already won the game. The only thing that can make you lose the game at this point, is you. There are some other dividend ETFs here, including global dividends. Probably a good idea to think about that. https://etfdb.com/etfs/investment-style/dividend-etfs/ e) some people will say 'don't focus on dividends'. they might be right, might be wrong. truth is that getting a dividend in every few months gives a lot of peace of mind about paying the bills without needing to worry about where the market's at and timing a sale
VBIAX, VDIGX and VFIAX. Buffet and chill
"Growth stocks" are not really my thing. I am one of those grumpy old man value investors that shakes my cane and yells at the kids to get off my lawn. If it was just me, I would be telling you that VOO already is your growth fund. If you order a pizza with everything on it and then think you need to diversify by also asking for extra mushrooms, that is not actually diversifying. "One of everything" already is your diversification. Anyway ..... Depending on how you feel about the political situation(s), then maybe emerging markets / frontier markets? As a nation becomes industrialized, the economy booms and that results in giant growth. That would also give a nice three way diversity to location. A similar idea is VDIGX with the theory that as nations become industrialized, these old stable well-tested companies may return back to their glory days and suddenly find themselves experiencing growth again once the new markets open up to them. But here again, VOO has you covered.
I have majority VFIAX in my Ira and then VDIGX and a retirement target. I was thinking about adding VIGAX, but it looks sort of similar to VFIAX. Any tips for diversifying? I kind of want to be risky with stocks.
I’m a fan of VDIGX (dividend growth fund) because the dividends are not taxed and can then be reinvested without counting as a contribution against the limits.
I'd sooner set up an income portfolio than start drawing down so early. Maybe a fund like VDIGX or VWINX. Something that's meant to provide somewhat steady output but with a little growth. If it's not enough to cover your expenses, use it to work fewer hours or take a gap year now and then but your wealth will still passively grow over time instead of shrinking.
I have positions in VUG, VTSAX, and VTI. I took out around 6K from VTBLX because bonds were doing absolutely nothing. Is my best bet to just adding positions to each of the above? Or could I open a position in VDIGX and make out okay in the medium run?
Vanguard Dividend Growth VDIGX has posted compound annual growth rate of 14.45% over the last 10 years and 10.64% CAGR over the last 15 years (which would include the deep 2008-09 slump). Fidelity Contrafund has posted 17.39% and 12.60% over the same time periods (data courtesy of Morningstar). This is assuming you have a cash cushion/emergency fund of at least 6 months' income stashed away first. Past returns do not predict future results but I have held both of these funds for many years and highly recommend them both.