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Solid Income With Dividend ETFs

Published Sun, 25 Nov 2018 19:27:42 -0500 on Seeking Alpha

Dividend growth investing has grown in popularity over the past few years. The premise is tied to the fact that companies that are able to grow their revenues and profits over time will also raise their dividends. Investors will see a growing snowball of income over time by regularly investing in these companies.
Is it possible to largely see the same process play out by purchasing ETFs or mutual funds that pay out dividends? This article will argue that, yes, it is possible to see passive income grow while also seeing total portfolio returns do quite well at the same time.
A couple of caveats should be noted initially. First, there are a few people who are able to pick stocks and beat the market indexes over time. Warren Buffett is a notable example who comes to mind. Second, this investigation will only go back 10 years. Therefore, the market as a whole has done quite well as a whole over this time period.
Vanguards High Dividend Yield ETF A leading example of how an investor could get a reasonable level of dividend income is Vanguard High Dividend Yield ETF (VYM). This fund has been around since 2006, just a couple of years before the market meltdown of the Great Recession.
Today, VYM is a highly diversified fund that included shares of 402 different companies as of October 31, 2018. Included in the fund's top 10 investments are a number of companies that are frequent fixtures in many of the top DGI bloggers' portfolios.
The top 10 companies held by the... Read more


Older articles featuring Vti (VTI):
High Yield Energy Debt: The Writing Is On The Wall/Oil
The Yield Curve Is Persistently Signaling That Danger Lies Ahead
Foreign High Yield Bonds Led Last Week's Mixed Market Results
Forget About The 5-Year Minus 2-Year Yield Curve Inversion; Instead, Focus On The 10-Year Minus 3-Month
Will Rates/Yields Peak Soon?
Aristocrats Or Achievers For Long Term Dividend Growth?
How Concerned Should We Be About The Yield Curve?
The Slowly, But Surely Dividend Income Portfolio - December 2017 Update
Dividend Strategy 2018: Time To Curb Your Enthusiasm?
The Slowly, But Surely Dividend Income Portfolio - October 2017 Update