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Vanguard Dividend Appreciation ETF: Steady Dividends In A Low-Cost Fund

Published Fri, 10 May 2019 09:31:58 -0400 on Seeking Alpha

Investment Thesis
Vanguard Dividend Appreciation ETF (VIG), as one of Vanguard's low-cost, passively-managed funds, provides a strong, steady dividend yield and outpaces the yield of similar funds.
In this ETF review, we will take a look at VIG's fundamentals, determine if it is an appropriate investment for dividend investors seeking yield, and compare it with similar ETFs to find the best funds in this category.
Basic Fund Information
From the fund's website: VIG "provides a convenient way to track the performance of stocks of companies with a record of growing their dividends year over year, it seeks to track the performance of the Nasdaq US Dividend Achievers Select Index, and follows a passively managed, full-replication approach." Vanguard lists the fund's expense ratio as 0.08% and reports total net assets of $40.9 billion as of 03/31/2019. VIG was established on 04/21/2006 and recently completed its 13th year of operations.
Dividends
VIG pays dividends quarterly and has done so consistently over the six most recent quarters, as shown below:

Based on the last four dividends totaling $2.1507/share and VIG's current trading price of $111.57/share (as of 10:55 am CST on 05/08/2019, courtesy of Yahoo! Finance), VIG's dividend yield is 1.93%.
Portfolio
VIG holds a total of 185 stocks, among them Procter & Gamble Co. (PG), Visa Inc. (V), Microsoft Corp. (MSFT), Johnson & Johnson (JNJ), and Walmart Inc. (WMT). Its major sector... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND 103.22   0.0 0.00 3.37 3.31
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
PROCTER & GAMBLE 122.77   90.3 1.36 2.98 2.49
WAL-MART STORES 116.92   26.3 4.44 2.12 1.83
MICROSOFT 137.52   27.1 5.07 1.84 1.35
VISA 177.98   34.2 5.21 1.00 0.57

ISHARES DOW JONES SELECT DIVIDEND INDEX FUND - DVY
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND - DVY  


Older articles featuring Ishares Dow Jones Select Dividend Index Fund (DVY):
Reduce Volatility With High Yield - The Income Method
The Vanguard High Dividend Yield ETF: A Well-Managed Dividend Play
The Retiree's Dividend Portfolio - John's Year-End Review
No Dividend-Strategy ETFs Are Dividend Champions, But There Is One Contender
The Best ETF For Dividend Growth Investors
Dividend Income Strategies Lagging In Strong Up Market
3 Black Friday Dividend ETF Deals
Dividend Payers A Winning Strategy In A Volatile Equity Market
WisdomTree High Dividend ETF: Combining What's Classic With What's New
When High Yield Isn't High: After-Tax ETF Returns

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