What does that mean, the dividend distributions from that fund is 4.24% of the current price?
But they only do distributions at certain times of the year so the yield could be different right?
Are you referring to the admiral shares or whichever ones require $100k minimums?
Lump-sump purchase or average into it over a period of time?
I guess if 100k minimum, you'd have to buy a chunk at once and then could add to it.
So no DRIP, you'd take dividends into your cash account and spend it?
Here's Wellesley Admiral's page:
https://personal.vanguard.com/us/funds/snapshot?FundId=0527&FundIntExt=INT
The current yield is 4.34%. Dividends are provided quarterly. Click on "Performance" for more info on performance.
Here's Wellesley's non-Admiral page since you expressed concern with the $100K minimum for Admiral:
https://personal.vanguard.com/us/funds/snapshot?FundId=0027&FundIntExt=INT
Current yield here is 4.24%.
You asked about lump sum vs averaging into it. I am averaging into my equity funds, but decided to purchase my Wellesley all at once last February since share price is not as volatile as some. My dividends are directed towards VMMXX Prime Money Market and they have been quite nice. Click on "distributions" on the above to see how much they have been lately.
I will be retiring next year, and will be living off a tiny pension, Wellesley, a regular monthly payment from my TSP G-Fund, and (perhaps!) SS starting in 2010-2014 or so. Meanwhile, my equity funds will have the function of growing my portfolio in the long term. At the end of each year, or more often if necessary, I will rebalance my portfolio.
My AA is approximately 45:55, equity:fixed, as follows:
30% VWIAX Wellesley Admiral
20% VTSAX Total Stock Market Admiral
13% VFWIX FTSE All-World Ex-US
2% "play" equities, VEIEX Emerging Markets right now
The rest cash, bonds, TSP G-Fund