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Dividend-Focused ETFs: How They Performed In Bull And Bear Markets

Published Wed, 29 Aug 2018 13:09:19 -0400 on Seeking Alpha

In a recent article I published on Seeking Alpha, I compared seven of the largest dividend-specific ETFs by assets under management (AUM) for their ability to generate an annually increasing dividend income stream. The article received a lot of very positive comments as there have been very few published articles comparing various dividend ETFs. In this article, I provide a follow up to compare those same ETFs for their record of capital appreciation and total-return performance (capital appreciation and dividends). Since some dividend growth investors (DGI) are interested primarily in income generation and others are interested in income as well as total returns, these two companion articles will hopefully provide some useful insights for investors as to which dividend-specific ETFs might prove useful to their investment portfolios (and which to avoid!).
Dividend Growth Stocks Outperform Regardless of whether one is investing to generate income for retirement or to generate capital appreciation, investing in dividend-paying stocks, particularly those that regularly grow those dividends, has led to greater total return performance over time.

Source of Chart: Ned Davis Research, Inc. (2015)
For example, the chart above illustrates the average annual total returns of S&P 500 stocks from 1972 through 2014 based on dividend policy. The group of stocks that initiated a new dividend or raised their existing dividends (“Dividend Growers & Initiators”)... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VANGUARD HIGH DIVIDEND YIELD ETF 83.97   0.0 0.00 0.00 3.50
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND 96.35   0.0 0.00 3.02 3.12
SPDR S&P DIVIDEND ETF 97.36   0.0 0.00 0.00 2.73
VANGUARD DIVIDEND APPRECIATION ETF 106.86   0.0 0.00 0.00 2.15
SPDR S&P 500 ETF 274.38   0.0 0.00 0.00 2.09
ISHARES DOW JONES INTERNATIONAL SELECT DIVIDEND INDEX FUND 30.79   0.0 0.00 0.00 0.00

VANGUARD HIGH DIVIDEND YIELD ETF - VYM
VANGUARD HIGH DIVIDEND YIELD ETF - VYM  


Older articles featuring Vanguard High Dividend Yield Etf (VYM):
Dividend Growth Investing For Retirees? Absolutely
5 High Yields To Keep Your Portfolio Safe With Preferred Shares
iShares Select Dividend ETF At An Attractive Buy Point, Yield Nearing 4%
Do Dividend-Paying Stocks Make Better Investments?
Lanny's December Dividend Income Summary
The Best Dividend Stocks: What To Look For?
The Growing Risk To Dividend-Focused Strategies
2 Under The Radar Dividend ETF Picks For 2019
SPYD: Still My Pick For High Yield
DVYE: This ETF Provides Broad Exposure To Emerging Markets, Has Outperformed Its Peers, And Yields 5.8%

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