Need help on choosing Dividend Index Fund

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topspin70
Posts: 16
Joined: Fri May 12, 2017 2:15 pm

Need help on choosing Dividend Index Fund

Post by topspin70 » Fri May 12, 2017 2:17 pm

Hi,
I would like to ask what will be the best Dividend Growth Index Fund.
Thanks!!!

The Wizard
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Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Need help on choosing Dividend Index Fund

Post by The Wizard » Fri May 12, 2017 4:33 pm

That dividend aristocrats fund, NOBL, that we were discussing a few days ago might be one place to start.
Compare growth of $10,000 from it with Vanguard dividend funds to find which did best in recent past.

I would not expect total return from these funds to be better than total stock market or an S&P 500 index fund, but that wasn't your question...
Attempted new signature...

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David Jay
Posts: 5793
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Need help on choosing Dividend Index Fund

Post by David Jay » Fri May 12, 2017 4:50 pm

I see that you are new to the forum - welcome.

If I may ask, are you in the accumulation stage of your life (I.e. Working and saving)? If so, there has been a lot of work done on this topic. In particular, financial author Larry Swedroe has demonstrated that a better focus in accumulation is total return, rather than dividend yield.

Here is one of his papers: http://www.etf.com/sections/index-inves ... -dividends
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

topspin70
Posts: 16
Joined: Fri May 12, 2017 2:15 pm

Re: Need help on choosing Dividend Index Fund

Post by topspin70 » Fri May 12, 2017 5:32 pm

Thank you for your recommendations!
I'm currently working (47 years old) but plans to retire at 55 by doing part time work.
Thanks!

chinto
Posts: 296
Joined: Wed Jan 04, 2017 7:39 pm

Re: Need help on choosing Dividend Index Fund

Post by chinto » Sat May 13, 2017 1:44 am

I use:

DGRO (ISHARES CORE DIVIDEND GROWTH)
BlackRock, Inc. / iShares Core
Net Expense ratio .08%
Distribution Yield (TTM)2.14%

DGRO's Prospectus Stated Objectives
The investment seeks to track the investment results of the Morningstar® US Dividend Growth IndexSM. The fund generally will invest at least 90% of its assets in the component securities of the underlying index. The underlying index is a subset of the Morningstar® US Market IndexSM, which is a diversified broad market index that represents approximately 97% of the market capitalization of publicly-traded U.S. stocks.

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patrick013
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Joined: Mon Jul 13, 2015 7:49 pm

Re: Need help on choosing Dividend Index Fund

Post by patrick013 » Sat May 13, 2017 11:21 am

David Jay wrote:I see that you are new to the forum - welcome.

If I may ask, are you in the accumulation stage of your life (I.e. Working and saving)? If so, there has been a lot of work done on this topic. In particular, financial author Larry Swedroe has demonstrated that a better focus in accumulation is total return, rather than dividend yield.

Here is one of his papers: http://www.etf.com/sections/index-inves ... -dividends
Re: Dividend stocks vs S&P 500

It's a shame that none of the authors Larry S. refers to uses the right index.
It's like saying stocks are no good but not studying the S&P 500. :)
age in bonds, buy-and-hold, 10 year business cycle

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nedsaid
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Re: Need help on choosing Dividend Index Fund

Post by nedsaid » Sat May 13, 2017 11:34 am

topspin70 wrote:Hi,
I would like to ask what will be the best Dividend Growth Index Fund.
Thanks!!!
I have no idea, the place to start would be expense ratios. The lower the expenses, the better.

If I had to pick between two dividend strategies, Dividend Growth and High Dividend, I would pick dividend growth. Investors have been chasing dividends since late 2008 as interest rates fell dramatically in the aftermath of the financial crisis. Dividends are a very popular strategy right now and thus I don't think this is the best time to pursue such a strategy.
A fool and his money are good for business.

avalpert
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Joined: Sat Mar 22, 2008 4:58 pm

Re: Need help on choosing Dividend Index Fund

Post by avalpert » Sat May 13, 2017 11:49 am

Why are you looking for a dividend growth fund - I would imagine the best fund for your purposes depend on what role it is supposed to play in your overall portfolio strategy, wouldn't you?

Longtermgrowth
Posts: 565
Joined: Thu Nov 26, 2015 1:59 pm

Re: Need help on choosing Dividend Index Fund

Post by Longtermgrowth » Sat May 13, 2017 2:46 pm

Surprised VIG (Vanguard Dividend Appreciation ETF) hasn't been mentioned. If a current dividend yield close to the S&P 500 is acceptable, it might fit the bill: http://www.etf.com/VIG

I like SCHD (Schwab US Dividend Equity ETF), with it's quality screens making it comparable to VIG, but with more of a value tilt and slightly higher yield: http://www.etf.com/SCHD

mcraepat9
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Joined: Thu Jul 16, 2015 11:46 am

Re: Need help on choosing Dividend Index Fund

Post by mcraepat9 » Sat May 13, 2017 7:53 pm

avalpert wrote:Why are you looking for a dividend growth fund - I would imagine the best fund for your purposes depend on what role it is supposed to play in your overall portfolio strategy, wouldn't you?
+1
Amateur investors are not cool-headed logicians.

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