5 Low-Cost Vanguard Funds for Dividend Income
February 28, 2021 6:03 AM newsfeedback@fool.com (Catherine Brock)
Posted:
Updated:
March 2, 2021 5:37 AM
Vanguard launched the first index fund in the 1970s and has since become a leader in low-cost investing. The premise of low-cost investing is straightforward. Lower fund fees allow a greater share of investment returns to pass through to shareholders. Vanguard lives that premise with its index funds as well as its actively managed funds. If you’re looking for a cost-efficient mutual or exchange-traded fund (ETF) in any niche, including dividend stocks, the Vanguard fund family likely has what you need.
Here are five low-cost Vanguard dividend funds that can turn your portfolio into a cash machine.
Author Bio
Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she s not writing, she can be found riding a horse in the country or shopping online for clothes. Follow @catherinejbrock
Whoever said that dogs are man s best friend probably wasn t retired. Sure, it s great to have Fido around for company, but he can t pay the bills as well as a dividend ETF can. In this era of low bond yields, dividend ETFs are an increasingly attractive alternative for retirees who need a reliable stream of income to supplement their Social Security.
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Dividend yield: 3.28%
Saint Paul, Minnesota-based 3M provides more than 60,000 products used in homes, businesses, schools, hospitals and other industries. Many of us would instantly recognize several of the brands, such as Ace, Futuro, Nexcare, Post-it, and Scotch-Brite. The company operates in four business groups including safety & industrial, transportation and electronics, healthcare, and consumer.
Q4 results released on Jan. 26, 2021 showed sales of $8.6 billion, up 5.8% year-over-year (YoY). Net income was $1,4 billion, an increase of 43.3% YoY. Adjusted EPS was $2.38, up 22.1%. Adjusted free cash flow came at $2.1 billion, up 16%.
Its health care and home improvement products have seen sales improve in recent months. However, sales of office products are still sluggish.
Dividends for Days: Breaking Down the Vanguard VIG ETF February 8, 2021
Dividend-paying stocks are coming back into style after some turbulence last year, meaning cost-conscious investors may want to revisit a familiar friend in the
VIG seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that have a record of increasing dividends over time. The fund employs an indexing investment approach designed to track the performance of the Nasdaq US Dividend Achievers Select Index, which consists of common stocks of companies that have a record of increasing dividends over time.
The requirement for entry into VIG’s underlying index is for companies to meet a minimum dividend increase streak of 10 years.
7 Top Dividend Growth ETFs For 2021
These funds all focus on investing in companies with long histories of sustainable dividend growth and are perfect for most portfolios.
Author:
Jan 19, 2021
For dividend seekers and those looking to live off of the income generated by their portfolios, dividend growth stocks are a popular investment choice. Many of these stocks aren t necessarily the highest yielders in the world, but their ability to steadily and consistently raise their dividends year-over-year make them ideal from a standpoint of predictability. And who doesn t like getting a raise every year?
There are a number of ETFs available to investors that not only target long-term dividend growers, but have been incredibly successful in doing so. They typically come very cheap and provide different degrees of coverage depending on what you re looking for. That could mean taking a chance at greater growth possibilities with companies that have as little as a 5-year dividend growth r