I don’t think anyone should be pressured that you should either pick individual stocks or hold ETFs, we all have a choice and actually you can do both, like I do, especially if you enjoy researching and comparing individual equities. With that out there, I recently bought some more of my beloved ETF, Vanguard High Dividend Yield Index Fund (VYM). Even Warren Buffett’s Berkshire Hathaway BRK has NOT outperformed an S&P 500 benchmark over the last decade. If you did not know, S&P 500 benchmark is the holy grail, very few investment managers beat the index. By investing in a broad ETF such as VYM, this is a way for me staying humble while also creating safety safety against my own ignorance.
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.
- Dividend Yield: 2.7%
- 10Yr Dividend Growth Rate: 9.3%
- 5Yr Dividend Growth Rate: 8.3%
- 3Yr Dividend Growth Rate: 8.8%
- Dividend Payout: Quarterly
- Expense Ratio: 0.06%
- Rating: Morningstar 5 Star Overall Fund
- Click ➡ here VYM ETF portfolio composition and other info
I purchased 69 shares of Vanguard High Dividend Yield Index Fund (VYM) for the average price of $81.90 per share for a total investment of $5,651.10 adding around $153.01 to my annual dividend income.
This is the 2nd time I am initiating a stock acquisition this year. This transaction is my additional purchase of VYM shares into the portfolio. As of today, I now hold a total of 139.93 shares of the ETF. Additionally, VYM ownership stake represents to be around 8.8% of my total portfolio value.
The Portfolio “The Dividend Machine” has been updated with link ➡ here.
Thank you for reading & have a great day!