The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a popular exchange-traded fund for income-oriented investors. It passively tracks the FTSE High Dividend Yield Index, which includes over 600 U.S. dividend-paying stocks with above-average yields, and charges a low expense ratio of 0.04%. It had a 30-day SEC yield of 2.22% at the end of July.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
VYM's underlying index ranks dividend-paying U.S. companies by their expected yield for the next 12 months. It then chooses the top-yielding half and weights them by market capitalization. It also intentionally excludes real estate investment trusts (REITs), which generally pay high yields but don't qualify for lower tax rates. That process of elimination causes VYM to gravitate toward stable, mature sectors -- including financials, industrial, healthcare, consumer staples, and energy -- while giving it less exposure to the tech sector than the major market indexes.
VYM pays a lower yield than other dividend-oriented ETFs, but it's generated a total return of nearly 500% since its inception in Nov. 2006. Parking $50,000 in VYD would net you $1,100 in annual dividends today, and reinvesting that income could boost your payout to thousands of dollars per year over the next few decades.
Before you buy stock in Vanguard High Dividend Yield ETF, consider this:
#signal #vanguard
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
VYM's underlying index ranks dividend-paying U.S. companies by their expected yield for the next 12 months. It then chooses the top-yielding half and weights them by market capitalization. It also intentionally excludes real estate investment trusts (REITs), which generally pay high yields but don't qualify for lower tax rates. That process of elimination causes VYM to gravitate toward stable, mature sectors -- including financials, industrial, healthcare, consumer staples, and energy -- while giving it less exposure to the tech sector than the major market indexes.
VYM pays a lower yield than other dividend-oriented ETFs, but it's generated a total return of nearly 500% since its inception in Nov. 2006. Parking $50,000 in VYD would net you $1,100 in annual dividends today, and reinvesting that income could boost your payout to thousands of dollars per year over the next few decades.
Before you buy stock in Vanguard High Dividend Yield ETF, consider this:
#signal #vanguard
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