Vanguard Dividend ETF

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Calhoon
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Vanguard Dividend ETF

Post by Calhoon » Thu Jul 14, 2016 6:11 pm

Any of you guys here invested in vanguard dividend etfs or dividend etfs from other companies?

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nedsaid
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Re: Vanguard Dividend ETF

Post by nedsaid » Thu Jul 14, 2016 6:16 pm

Not now. Investors have been chasing yield for almost eight years now. It doesn't seem like a good time to pursue this strategy. When the market hates dividends, that is the time to buy in, not when everyone and his brother are chasing them.
A fool and his money are good for business.

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Phineas J. Whoopee
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Re: Vanguard Dividend ETF

Post by Phineas J. Whoopee » Thu Jul 14, 2016 8:09 pm

A number of posters are, but not me. Why do you ask?
PJW

Elbowman
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Re: Vanguard Dividend ETF

Post by Elbowman » Thu Jul 14, 2016 8:37 pm

nedsaid wrote:Not now. Investors have been chasing yield for almost eight years now. It doesn't seem like a good time to pursue this strategy. When the market hates dividends, that is the time to buy in, not when everyone and his brother are chasing them.
+1. Wait for when an article titled "The Death of Dividends", published in a respectable journal, elicits knowing nods from your "investing buff" friends/coworkers.

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patrick013
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Re: Vanguard Dividend ETF

Post by patrick013 » Thu Jul 14, 2016 9:02 pm

Calhoon wrote:Any of you guys here invested in vanguard dividend etfs or dividend etfs from other companies?
If I bought ticker PEY last January I would have a 25% gain
and it would pay a dividend for quite some time.
age in bonds, buy-and-hold, 10 year business cycle

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Phineas J. Whoopee
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Re: Vanguard Dividend ETF

Post by Phineas J. Whoopee » Thu Jul 14, 2016 9:14 pm

patrick013 wrote:...
If I bought ticker PEY last January I would have a 25% gain
and it would pay a dividend for quite some time.
What should the rest of us buy tomorrow to gain that much over the next six and a half months?
PJW

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patrick013
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Re: Vanguard Dividend ETF

Post by patrick013 » Thu Jul 14, 2016 9:29 pm

Phineas J. Whoopee wrote:
patrick013 wrote:...
If I bought ticker PEY last January I would have a 25% gain
and it would pay a dividend for quite some time.
What should the rest of us buy tomorrow to gain that much over the next six and a half months?
PJW
In an overbought market not doing much, but holding, stay the course, etc..
But that would be a great entry point for a great dividend ETF during
a market correction, when others TLH.
age in bonds, buy-and-hold, 10 year business cycle

Calhoon
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Re: Vanguard Dividend ETF

Post by Calhoon » Fri Jul 15, 2016 7:55 am

PJW -- Kept seeing people like Malkeil and Seigel talking about dividends. Seigel most recently. Though had also seen on some of the vanguard etfs that the ytds was pretty good.

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cfs
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Re: Vanguard Dividend ETF

Post by cfs » Fri Jul 15, 2016 8:17 am

At one point.

During my trading-aficionado days , I had the High Dividend Yield and Utilities ETFs, this was a momentum or market timing tactical allocation move. Sold at a good gains. No longer holding any of the so-called high yielding products in the RISK side of my Black Swan Ready SWAN portfolio.

Thanks for reading.
~ Member of the Active Retired Force since 2014 ~

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cinghiale
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Re: Vanguard Dividend ETF

Post by cinghiale » Fri Jul 15, 2016 8:26 am

It's not an ETF, but I continue to hold Wellesley Income. Its 38% or so stock allocation might as well be a dividend fund. I have no plans to add to it, draw from it, or sell it in the foreseeable future.
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

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nedsaid
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Re: Vanguard Dividend ETF

Post by nedsaid » Fri Jul 15, 2016 11:22 am

Elbowman wrote:
nedsaid wrote:Not now. Investors have been chasing yield for almost eight years now. It doesn't seem like a good time to pursue this strategy. When the market hates dividends, that is the time to buy in, not when everyone and his brother are chasing them.
+1. Wait for when an article titled "The Death of Dividends", published in a respectable journal, elicits knowing nods from your "investing buff" friends/coworkers.
There are people out there that are contrarian and who overdo it. Quite often, the crowd is right. But I do think that all investors could benefit from some contrarian thinking. What I am trying to do is help protect investors from their worst instincts and their worst behavioral errors. It seems that successful investing is only doing the stupid things and learning from them rather than doing the really, really, really stupid things and repeating the same errors over and over.

Buy low, sell high is a bit simplistic but it does summarize the approach that investors should take with their own money. Like Donald Trump, we all want to win. And unfortunately, "winning" is often piling into successful strategies and investments near the peak of their cycle. That is investing at the point of maximum optimism. It is harder to put money into asset classes that have good historical records but have not performed well recently. It seems too much like "losing." Nobody likes to "lose." We have to resist the temptations to make our portfolios great again. Index funds are just too boring but people forget that the best investments are very, very boring.

If somebody bought Vanguard Dividend Growth and held it for the next 30-50 years, they would probably do well and might even beat the market. I think, however, that we are far closer to the peak of the cycle of investor enthusiasm for dividends than the trough. My concern is that such an investor might face years of disappointment only to sell at the trough of the cycle. Buy high, sell low. Hard to fathom how that works out for investors but many do that anyway. John Templeton once said that a big secret to investment success was buying at the point of maximum pessimism. But, alas, most do the opposite.
A fool and his money are good for business.

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