Tuesday, May 29, 2012

Buying VIG: Vanguard Dividend Appreciation ETF

In keeping with some past thoughts on dividend stocks I have been buying VIG.  If rates are destined to stay low for some time then I think there's going to be greater interest in searching for yield in quality dividend payers.  This is not an original idea, and expert interviews at some media outlets would give you the impression that everyone and their dog is in this trade, but retail investors still seem to be shunning stocks and buying bonds.  It is difficult to see how investors can meet their future liabilities (children's college, mortgage, retirement income, etc) in bond funds with negative real yields going out 10 years and cash paying near zero percent.

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