Dividends

TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS

May 17, 2019

TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS

Morningstar’s CHRISTINE BENZ’ “TANTALIZING DIVIDEND YIELDS” FUNDS:

SCHWAB U.S. DIVIDEND EQUITY ETF (SCHD)

  • – Morningstar Silver Analyst Rating
  • – Higher-yielding half of the 2500 largest U.S. stocks (excluding REITs)
  • – Consistent dividend payers
  • – Companies that score well on various profitability measures

VANGUARD EQUITY-INCOME FUND (VEIPX)

  • – Morningstar Silver Analyst Rating
    “…run by two separate management teams plying complementary strategies.”
    – Christine Benz, Morningstar.com
  • Vanguard Equity-Income Fund management teams:
    — Wellington – finds dividend paying companies inexpensive relative to their growth prospects
  • – Vanguard – uses a quantitative approach

VANGUARD HIGH DIVIDEND YIELD ETF (VYM)

  • – Morningstar Silver Analyst Rating
  • – Avoids big bets in traditional high-yield sectors like financials, utilities and energy stocks by the way it weights the portfolio

Watch the related WEALTHTRACK episode.

PUT SOME INFLATION BENEFICIARIES IN YOUR PORTFOLIO

October 5, 2018

PUT SOME INFLATION BENEFICIARIES IN YOUR PORTFOLIO

BUILDING INFLATION PRESSURES:

  • Growing economy
  • Higher interest rates
  • Tight labor force
  • Increasing debt
  • Punitive trade policies

PURCHASING POWER PROTECTION

  • Investments that keep up with inflation
  • Companies with a history of rising dividends
  • Dividend Aristocrats are S&P 500 companies with history or raising dividends for 25 consecutive years or more

INCREASING ANNUAL DIVIDENDS

  • 25 YEARS OR MORE: PROSHARES S&P 500 DIVIDEND ARISTOCRATS ETF (NOBL)
  • 20 YEARS OR MORE:SPDR S&P Dividend ETF (SDY) (Chosen from S&P 1500)

Watch the related WEALTHTRACK episode.

OWN AT LEAST ONE FUND OR ETF WITH GROWING DIVIDENDS

May 18, 2018

OWN AT LEAST ONE FUND OR ETF WITH GROWING DIVIDENDS

  • Offer a reliable income stream
  • Companies tend to have sustainable competitive advantages
  • Compelling total return
  • Compounding potential

Mbningstar favorites:

  • T.ROWE PRICE DIVIDEND GROWTH (PRDGX)
  • HARTFORD DIVIDEND AND GROWTH FUND (IHGIX)
  • VANGUARD DIVIDEND APPRECIATION (VDAIX) (VIG)

Watch the related WEALTHTRACK episode.

PUT THE POWER OF COMPOUNDING DIVIDENDS TO WORK FOR YOU

August 25, 2017

PUT THE POWER OF COMPOUNDING DIVIDENDS TO WORK FOR YOU

COMPOUNDING POWER

    Companies with long history of paying and growing dividends
    “Dividend Aristocrats”

  • S&P 500 companies that have increased annual dividends for at least 25 consecutive years
  • DRIPs: Dividend Reinvestment Plans

  • Automatically reinvest dividends in new shares
    Popular dividend growing ETFs:

  • SPDR S&P Dividend ETF (SDY)
  • Vanguard Dividend Appreciation ETF (VIG)

Watch the related WEALTHTRACK episode.

PUT THE POWER OF COMPOUNDING DIVIDENDS TO WORK FOR YOU

September 18, 2015

PUT THE POWER OF COMPOUNDING DIVIDENDS TO WORK FOR YOU

SPDR S&P DIVIDEND ETF (SDY)
SDY Chart

SDY data by YCharts

VANGUARD DIVIDEND APPRECIATION ETF (VIG)
VIG Chart

VIG data by YCharts

Watch the related WEALTHTRACK episode.

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