A little over a year ago, a headline on Seeking Alpha announced, "VYM Increases Its Dividend 20%: ETF Portfolio Increases Its Lead Over The Stock Pickers." VYM is a dividend ETF from Vanguard. When I read the headline, I was perplexed. In my own Dividend Growth Portfolio [DGP], I have never experienced a dividend jump of anywhere near 20% all at once across the portfolio. An individual stock may do that, but not an entire portfolio. I wondered how the ETF had managed to have a sudden 20% increase in its distribution across the whole fund.
A little investigation revealed the answer: Vanguard's VYM has a seasonal pattern to its distributions. They cut their payout in the first quarter of each year, then they raise it over the next three quarters, with the largest increase typically coming in December. Then they cut the next payout the following March and start the cycle over again. The headline and article focused only on the fourth quarter increase, never discussing the seasonal pattern. There was no follow-up article discussing the 25% cut three months later.
Source: Seeking Alpha
Related Articles:
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
- The Perfect Dividend Stock
- Bonds Look Morbid When Compared To These Dividend Stocks
- My 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
Several Dividend ETFs Slash Their Dividends By Up To 22%
Posted by D4L | Monday, May 04, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.