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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):
Dividend Sanity In An Insane World
Dividend Diligence: The Quant Model Speaks
SDY: Dividends Are Attractive, But Not When Fueled By Debt
Dividends By The Numbers In July 2019
NOBL: Stick With Dividend Aristocrats As Economic Fears Mount
Income Investing And The Changing Yield Curve
Dividend Growth ETF Overlap
FDVV: A High Dividend ETF For A Low Interest Rate Environment
Do Dividend-Paying Stocks Make Better Investments?
Paying My Bills With Dividends - Q4 2018 Update

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