Author Topic: VDIGX - Vanguard Dividend Growth - Opinions  (Read 4078 times)

bigwhitedawg

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VDIGX - Vanguard Dividend Growth - Opinions
« on: January 24, 2016, 12:32:12 PM »
New around here and new to the Vanguard family as well.  In discussing fund options with another Vanguard investor he recommended taking a look at VDIGX.  I searched the forums here and didn't find any hits, is anyone else using this fund as part of your investment plan?  Is there an inherent value to working with a fund that focuses on solely dividend heavy companies?  Other thoughts?

Ankenystache

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #1 on: January 24, 2016, 12:47:13 PM »
Hey new here as well, but I was looking into that same fund about 6 months ago. My deciding factor was that my money was in a IRA and although I like the idea of a stable dividend return to reinvest in, I can't bring myself to limit myself to just big companies. I don't mind risk and that is why I chose mid-cap funds because they have room to grow into the market and hopefully give me a better return on my money. I can see value in investing in this if you had it in a regular taxable account and could use the dividends to help with life's goals, but with so much news of companies losing profits in the near future, my opinion is that a lot of the big companies are going to limit dividends to help the books look better. This is probably going to be a tough year for dividends. I am sure there are others that are going to give some helpful insight into how they run their own portfolios but it all boils down to what risk your comfortable with and how you want your assets allocated.

P.S. The vanguard fund I ultimately decided on VIMSX. Also I should add that the expenses on this fund a little lower

tj

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #2 on: January 24, 2016, 09:35:43 PM »
Solid fund with good cheap management.  Around here, most like to stick to passive/index funds.



MustacheAndaHalf

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #3 on: January 25, 2016, 02:09:42 AM »
In general "discussing fund options with another Vanguard investor" tends to be worse than reading about passive indexing.  Take a look at "The Investment Answer" in your local library (80 page book, $4 from Amazon if you prefer) to get the quickest of overviews.

If you want dividends and lower expense ratios, consider Vanguard High Dividend Yield ETF (VYM).  You would drop from 0.32% expense ratio to 0.10%, but the funds are different.  "VYM" features more large/value stocks, instead of large/blend.

CorpRaider

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #4 on: January 25, 2016, 07:24:45 AM »
They have an index version of this dividend grower philosophy: VIG, VDAIX.  Most of the people on here would say get VTI or a total world stock index versus one constrained based on dividends.

apples2apples

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #5 on: January 25, 2016, 08:07:47 AM »
I own this fund and am a big fan of it.  I was turned onto this fund by Dan Wiener who writes the "Independent Adviser for Vanguard Funds" newsletter.  I like it because: A) its run by only one manager and B) The fund only has about 50 or so positions in which the management has strong conviction in.  It has been a strong performer since Don Kilbride (from Wellington MGMT) took over and has limited losses during downturns.  Despite its name though, the fund isn't one that focuses on yield, but rather companies that are poised to grow dividends in the long run.  I read an interview with the manager, and he said that they look for companies with "battleship" balance sheets with strong growth prospects.  If you are looking for high yield, you might look towards High Dividend Yield Index or Value Index.  The management also does a great job of limiting CGs through a long term investing perspective, although that is of no consequence if in an IRA.  I am not an active only guy and do own index funds, but I feel this is one fund with superior management (along with any Primecap fund).   I continue to add to this position and consider it a core holding.

apples2apples

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #6 on: January 25, 2016, 08:09:26 AM »
I should also mention that the active version has run circles around the index version.  Indexers can make the reversion to the mean argument though, but its all about balance.
« Last Edit: January 25, 2016, 08:11:05 AM by apples2apples »

tj

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #7 on: January 25, 2016, 09:13:12 AM »
Yep VIG is far too concentrated for my liking as it's rigidly market capped of a very specific index. VDIGX much better choice IMO.

sisto

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #8 on: January 28, 2016, 12:30:57 PM »
I'd like to here from the dividend investors out there on what they recommend investing in? I've read several of the old threads on the various debates as to what's best etc. What I would like is to know what you successful dividend investors are investing in?

tj

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #9 on: January 28, 2016, 01:03:12 PM »
I'd like to here from the dividend investors out there on what they recommend investing in? I've read several of the old threads on the various debates as to what's best etc. What I would like is to know what you successful dividend investors are investing in?

Dividned investors generally don't like to use funds, they use individual stocks.

Best to check out Morningstar's Dividend Investing forum:

http://socialize.morningstar.com/NewSocialize/forums/100000098.aspx

sisto

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #10 on: January 28, 2016, 01:52:30 PM »
I'd like to here from the dividend investors out there on what they recommend investing in? I've read several of the old threads on the various debates as to what's best etc. What I would like is to know what you successful dividend investors are investing in?

Dividned investors generally don't like to use funds, they use individual stocks.

Best to check out Morningstar's Dividend Investing forum:

http://socialize.morningstar.com/NewSocialize/forums/100000098.aspx
I understand that, I was hoping to see a list of recommended stocks. Also is it better to have pre-tax 401K in dividend stocks or after tax accounts?

tj

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Re: VDIGX - Vanguard Dividend Growth - Opinions
« Reply #11 on: January 28, 2016, 01:57:42 PM »
I'd like to here from the dividend investors out there on what they recommend investing in? I've read several of the old threads on the various debates as to what's best etc. What I would like is to know what you successful dividend investors are investing in?

Dividned investors generally don't like to use funds, they use individual stocks.

Best to check out Morningstar's Dividend Investing forum:

http://socialize.morningstar.com/NewSocialize/forums/100000098.aspx
I understand that, I was hoping to see a list of recommended stocks. Also is it better to have pre-tax 401K in dividend stocks or after tax accounts?

I can't imagine it'd make a difference at all if you had dividend stocks in a pre-tax account or a roth account. If you're not looking to analyze individual securities yourself, I'd recommend using funds, whether active or index.