Dividend growth stocks historically have given the highest overall return, the volatility of which is the lowest.
The Vanguard Dividend ETF follows an index, which screens the highest dividend growth actions.
The fund gave a large return on investors, which could continue in the future.
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Vanguard allowed everyone to be a passive investor easily. It has several passively controlled funds (ETFs) to follow a specific stock market index. This allows investors to buy funds with strategies that meet their goals.
Investing in dividend growth campaigns is one of the smartest strategies because they have historically given the highest overall return and the lowest volatility. Doing that Vanguard Dividend Assessment ETF(New: VIG)which follows S&P US Dividend Growers IndexGreat ETF to buy. This could significantly increase the value of $ 1,000 in the value of this June.
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Most investors do not fully value power Dividend payments; Since 1940, Dividend Income brought 34% S&P 500A total return on average based on data Morningstar and Hartford funds. In addition, Hartford Funds and Ned Davis Research have found that since 1973 The average dividend payer S&P 500 gave 9.2% average annual overall return, more than double than double Return non -dividend payers (4.3%). Dividend payers also had much less volatility than non -dividend payers.
Digging deeper into Data on dividendsHartford Funds and Ned Davis Research revealed that the best returns and the lowest volatility were from dividend growers and initiators. The average overall return they were 10.2% compared to 6.8% of companies that did not change dividend policy, and the negative return of 0.9% dividend cutters and eliminators.
Given that data, investing in dividend growth campaigns is a great strategy. But it is easier to say than to make an average investor who has no time Actively managing a portfolio of dividends;
This is where Vanguard can help. Vanguard Dividend Assessment ETF Observes an index that checks companies for those who have a consistent record to increase dividends at least in the last decade. This does not include 25 percent. The largest dividend stock From the list because of the higher risk of these companies, it will not be able to grow their dividends (or, worse, reduce or eliminate benefits), which historically gave a lower return on investment. Currently, the list includes 338 shares.
The Vanguard Dividend Assessment ETF is not a typical dividend ETF. Many of these funds focus on higher -yield dividend shares and are more satisfied with income -oriented investors. This fund aims to gain benefits from the growth of value, which was historically provided by dividend growth stocks. That is why its dividend yield (recently about 1.7%) is lower than most of the other best dividends ETFs.
But what is missing for this ETF yield, It is more than compensating for the overall return. Over the past 10 years, the fund has returned 11.5% annual return on average. In this way it would have increased the $ 1,000 investment made A decade ago, nearly $ 3,000. This is a great return on a lower -risk investment strategy.
Although the earlier result of the fund does not guarantee that it will give a similar return in the future, its attention to dividend growers gives significantly increasing investment value over a long period of time. For example, if it can give a 10% annual return, it can increase the $ 1,000 investment in an almost $ 17,500 in 30 years. Meanwhile, if it would retain its return rate in the last decade (11.5%), it could increase by $ 1,000 to more than $ 26,000 in 30 years.
The more you invest in the fund, the more money you can make in the future. Adding $ 1,000 to your investment in this ETF each year can increase the total value to nearly a quarter of a million dollars in 30 years, with an annual return rate of 11.5%.
Dividend Growth Action Historically has been a great investment for those seeking to increase their assets Over time; They give a high return with lower volatility than non -dividend payers and other dividend campaigns. For this reason, the Vanguard dividend estimation ETF looks like a great ETF to invest $ 1,000 in this June. It can increase that money into a much greater surprise of the future.
Before buying shares at Vanguard Dividend ETF, consider this:
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Matt Dialllo has no position in any of the above shares. The Motley fool is a position and recommends the Vanguard Dividend ETF. The Motley fool has a disclosure policy.
1 Brilliant Vanguard Etf Invest 1000 USD in this June initially released The Motley Fool
