Question on Dividend Stocks or Funds

ats5g said:
Vanguard jumping on the Bandwagon:

New Dividend Acheivers Index fund.

Where the he** is the int'l bond fund or microcap fund:confused:!!!

EXXXXXCELLLLENT. Now I know what to do with that loose 100k I've got hanging around.

I suspect the microcap and intl bond funds would be expensive and vanguard dont likey the expensive funds? Just a wild guess. Or maybe they figure those are too exotic for their typical customer?
 
() said:
EXXXXXCELLLLENT.  Now I know what to do with that loose 100k I've got hanging around.
Yeah, that caught my attention too. It sounds like Vanguard is proposing to go head-to-head against iShares' DOW Dividend ETF (DVY) but hopefully at a lower ER than 0.40.

But I don't understand their VIPERS. Are they traded on a stock exchange? More importantly, is their VIPER/ETF version of their DOW Dividend Achievers fund going to be a publicly-traded security that I can buy through my Fidelity brokerage account, or do I have to be a freaking Vanguard shareholder and put up with VG's @#$% alleged "customer service"?
 
Anyone ever follow Geraldine Weiss newsletter? She advocated purchasing dividentd stocks (blue chip) when they are undervalued, usually by either litigation, bad accounting or patent experations, etc. That is when the dividend is the highest, and when it gets past all the mud, and hopefull starts climbing, the dividend falls, and you jump off when it gets overvalued.

Anyone subscribe to newsletter? What has been your experience?
 
Anyone ever follow Geraldine Weiss newsletter? She advocated purchasing dividentd stocks (blue chip) when they are undervalued, usually by either litigation, bad accounting or patent experations, etc. That is when the dividend is the highest, and when it gets past all the mud, and hopefull starts climbing, the dividend falls, and you jump off when it gets overvalued.

never heard of it, but there are a lot of newsletters and I suscribe to none. I occasionaly look at some of them and get the free sample issues, though. I wonder what it takes to start a newsletter?
 
Nords said:
Yeah, that caught my attention too. It sounds like Vanguard is proposing to go head-to-head against iShares' DOW Dividend ETF (DVY) but hopefully at a lower ER than 0.40.

But I don't understand their VIPERS. Are they traded on a stock exchange? More importantly, is their VIPER/ETF version of their DOW Dividend Achievers fund going to be a publicly-traded security that I can buy through my Fidelity brokerage account, or do I have to be a freaking Vanguard shareholder and put up with VG's @#$% alleged "customer service"?

Oh fer chrissakes just get a vanguard account!!! ;)

Never had a problem with customer service, but then I have my own named rep.

Yep, the vipers work just like any other etf; you can buy shares out of your brokerage account.

Maddy - I can tell you exactly what it takes to start a newsletter. A name and/or a face is usually required, but not essential. After that, all you need is an opinion that will eventually be proven wrong. Usually quite quickly.
 
modhatter said:
Anyone ever follow Geraldine Weiss newsletter? She advocated purchasing dividentd stocks (blue chip) when they are undervalued, usually by either litigation, bad accounting or patent experations, etc. That is when the dividend is the highest, and when it gets past all the mud, and hopefull starts climbing, the dividend falls, and you jump off when it gets overvalued.

Anyone subscribe to newsletter? What has been your experience?

I've read some of her stuff and I agree with her buy-side approach but I don't understand your comment about jumping off when the dividend falls. I often sell if the dividend is cut, but I think you are saying that when the stock price rises and the annual dividend amount stays the same you would sell because the current yield has gone down. Once I own the stock the current dividend yield doesn't mean that much to me.

Grumpy
 
and you jump off when it gets overvalued.

I wouldn’t agree with this statement since I would be taking on capital gains taxes and commissions. I would suspect that if she is suggesting this, it would be because she wants you to continue to subscribe to her newsletter to find out what to sell. How much do you have to pay a year to get the “magic decoder ring”?
 
We currently have the traditional investor shares with our 500 index fund at Vanguard. Which would be better the traditional investor shares or the exchange traded viper shares? I am not sure what the difference between the two are and which would be better.

Thanks,

Dreamer
 
For the Geraldine Weiss thing, I wrote it about it somewhere else under my investment philosophy, but the website is iqtrends.com. You can see an old sample issue at the website. And no, I do not subscribe; I only use her theories to start researching ideas.

The approach is this: People look at P/Es of companies and say "That P/E is low relative to the company's history." She started looking at dividend yields about thrity or so years ago and said companies tend to be in a dividend range. So, for example, Citigroup (I own and am negative after two years) has had a historic dividend range between 2.2% and 1.0%. When C has a yield of 2.2% or greater, it is considered a safe investment historically because, as someone said before, institutions will start buying because of the great yield. With yield of C now at 4% and increasing the divi each year, the question becomes "How low can it go with such a big dividend cushion?" Same question on the other end is Nucor (I did own and sold for a profit). In a year, when steel stocks were it, NUE went from Undervalued to Overvalued, according to its yield. Once you hit Overvalued, it could still run, BUT unless the company raises the dividend to put the yield back in Nucor's historic yield range, one would want to sell or put in stop-losses to let the market take you out.

And in terms of newsletters, I believe it has been #1 in the last 10 and 15 years for risk-adjusted returns. It will not find the next growth stock; I have used it to design a buy-and-hold (to a degree) portfolio but get a "safe" dividend with minimal risk to the downside.

I hope this made sense.
 
Dreamer said:
We currently have the traditional investor shares with our 500 index fund at Vanguard.  Which would be better the traditional investor shares or the exchange traded viper shares?  I am not sure what the difference between the two are and which would be better.

Thanks,

Dreamer

Hi Dreamer,

For difference between ETF's and index funds see View Features of Vanguard VIPERs and Traditional Index Funds.

Vanguard doesn't have an ETF benchmarked to the S&P 500. There are Spiders [you've probably seen the commercial with the spider on the scale] and [iShares IVV. Though Vanguard does have Large Cap Vipers and TSM Vipers. The Large Cap Viper is quite similar to an ETF that Tracks the S&P 500 index in that it tracks an index of 750 large cap companies.

If you're wondering which is better [index funds or ETFs] Vanguard had a little decision tree See if Vanguard VIPERs Are Right for You. I think for the investor without a lot of money, Vanguard's large cap index funds [S&P 500 or TSM] could be better because of the transaction costs and brokerage fees with ETF's. Also, since Vanguard has lowered the bar to get into Admiral shares to $100,000, if you've got over that in an index fund, you're paying almost the same expense ratios as in the ETF's.  :cool:

Also, the tax efficiency of Vanguard's index funds focusing on large cap stocks [TSM + S&P 500] are just as tax efficient at the large cap ETT's.

- Alec
 
ats5g said:
Vanguard jumping on the Bandwagon:

New Dividend Acheivers Index fund.
Another dividend eft started trading Sept 15 from Powershares--PFM  Focuses on companies with consistent record of divident payout and increases.
"Very few companies ever receive Mergent's esteemed designation of "Dividend Achiever™". This select group of companies have demonstrated their commitment toward rewarding shareholders through continuous dividend growth regardless of the economic conditions. To earn the designation of Dividend Achiever™, a domestic company must have increased its regular annual dividend every year for each of the last 10 years while an international company must have increased its annual dividend each of the last 5 years"  More at http://www.powershares.com

nwsteve
 
nwsteve said:
Another dividend eft started trading Sept 15 from Powershares--PFM.
Apparently Powershares' Marketing Dept missed the fact that, in many academic institutions and the military, PFM is a derogatory acronym standing for "Pure Freakin' Magic". Not exactly the image you want an ETF to have among its prime customers...
 
Nords said:
Apparently Powershares' Marketing Dept missed the fact that, in many academic institutions and the military, PFM is a derogatory acronym standing for "Pure Freakin' Magic".  Not exactly the image you want an ETF to have among its prime customers...

On the other hand, given some of the ads we see these days, maybe the acronymn is exactly what some clown in marketing thought would make it the ideal trading symbol.  :D
Nwsteve
 
nwsteve said:
exactly what some clown in marketing thought

Hey now!

Mind stepping back off my big shoes and giving me some room to adjust my orange hair and red bulb nose?

Besides, if it wasnt for we marketing clowns, all y'all wouldnt realize how many things you dont have that would make your life sooo much better!
:LOL:
 
Thanks Alec! I definitely do not have a large amount of money.

Dreamer
 
() said:
Good memory my friend.
Well, it was memorable. Not that I ever got caught doing anything like that.

() said:
Military intelligence?
"Nuclear engineering".

Or my favorite, "Nuclear Weapons Safety Officer."
 
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