Acquisition VYM

This recent acquisition I went ahead and diversified the portfolio even further with Vanguard High Dividend Yield Index Fund (VYM). As known in the industry, Vanguard has the one of the lowest cost fee structures in the business and you guys know how much I hate fees, right? I hate them a lot! Now, I will be holding this ownership in a Vanguard Traditional IRA account and not in my Self-Directed E*Trade brokerage account as with other portfolio holdings. The reasoning behind this is that with Vanguard account I can buy and sell any Vanguard ETF for FREE, yes that is right free trades. That is huge, especially over a period of time. Plus, the fund itself has a nice dividend yield that will be automatically reinvested to purchase new shares over time. Lastly, in the future I will be looking on building on this ETF position as a step closer to a do-nothing investor, as Buffett calls them.

Strategy Overview: 

The investment seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that are characterized by high dividend yield. The fund employs an indexing investment approach designed to track the performance of the FTSE High Dividend Yield Index, which consists of common stocks of companies that pay dividends that generally are higher than average. The adviser attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Statistics: 

  • Dividend Yield: 2.9%
  • 3Yr Dividend Growth Rate: 8.0%
  • Dividend Payout: Quarterly
  • Expense Ratio: .08%
  • Rating: Morningstar 5 Star Overall Fund

More Info:

Click here at Vanguard.com

I purchased 65 shares of VYM for the price of $76.90 per share for a total investment of $4,998.50 adding around $145.60 to my annual dividend income.

It is the 3rd time I am initiating a stock acquisition this year. This transaction is my first ever purchase of VYM shares into the portfolio. Currently, VYM ownership stake represents to be around 4.9% of my current portfolio value. Also, the acquisition of VYM makes it the 38th company I am invested in.

Conclusion:

The 12-month dividend income increases to $3,195.

Portfolio “The Dividend Machine” has been updated with link > here.

Thank you for reading & have a great day!

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2 Comments

  1. Dividend-Portfolio on May 1, 2017 at 12:10

    That’s a nice addition Vet. I’ve always been interested in both VYM and VIC. I think they will both end up in my portfolio someday, although I’m not sure if it will be in my IRA or my taxable account. In any case, great addition to your portfolio.

    • DividendVet on May 1, 2017 at 13:25

      Thanks, as much as I like to buy individual shares of the companies and invest in them for longterm due to ZERO fees, I think ETF investing with Vanguard funds is really great too as the portfolio appreciates in value.

      I am also eyeing another Vanguard REIT fund for the future so stay tuned.

      Either way, essentially you gotta find what works for you and your comfort level. I like passitivity and diversification it offers in one scoop.

      Take care.

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