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55400980 No.55400980 [Reply] [Original]

> Vanguard

name speaks for itself. Why is Vanguard high dividend yield index fund only yields 3% ? if the average return on stock market yields ~7%* the dividend focused fund doesn't even yield half ? I was kinda hoping for nearish 6-7%.

It doesn't even cover current inflation numbers so seriously wtf ?

*hard to get this figure right

>> No.55401086

>>55400980
Dont know, even my high dividend ETF only yields 5.5% but there's a lot of chink shit in there.

>> No.55401325

>>55400980
vanguard makes money by having their clients not lose money

if you want to get high yield divs you have to buy them yourself. easily doable with stock screener

$MPW

>> No.55401385

Have you looked at dividend aristocrats?

>> No.55401426

I put a third of my paycheck into this.
Wagmi boglebros

>> No.55401899

>>55400980
The yield of 3-4% is only the income distributions, the price also appreciates. If the market yields around 8%, you'd expect 4-5% price appreciation on top of the dividends.
The total return will be a little lower than the overall market because dividends have a lower volatility.

>> No.55401921

Dividend yield =/= total return

>> No.55402027

>>55401921
even adjusting for total return it makes less

it's not surprising because the big dividend stocks are mature companies, they cannot usually grow the dividend fast. if they could, they wouldnt be paying a dividend in the first place they'd be investing in capex

dividends aren't obsolete they just require specific industries and companies, so indexes generally fail to capture value compared to individual stock picking

>> No.55402054

>>55400980
>didevend

>> No.55403900

>>55402054
kek first thing I noticed