Vanguard VWEAX

[tcaron20]

So I come to the conclusion that dividend stocks and high yield quality corporates are the place to go.
VWEAX gets talked about a lot as a stand out and is rated high with most agencies.

The yield on this fund is rather nice at about 5.5%.

Dividend stocks have become too expensive.

Any opinions?


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[2017ish]

"High quality" and VWEAX are not in the same Venn Diagram--although they do strive to get the higher rated issuances within the junk bond market:

Vanguard High-Yield Corporate Fund invests in a diversified portfolio of medium- and lower-quality corporate bonds, often referred to as “junk bonds.” Created in 1978, this fund seeks to purchase what the advisor considers higher-rated junk bonds. This approach aims to capture consistent income and minimize defaults and principal loss. Although this is a bond fund, high-yield bonds tend to have volatility similar to that of the stock market. This fund may be considered complementary to an already diversified portfolio.

https://personal.vanguard.com/us/funds/snapshot?FundId=0529&FundIntExt=INT Not my cup of tea for a bond investment, but I suppose it can make sense within the "already diversified portfolio."

 

[COcheesehead]

Just like Vanguard says, it should be a part of your bond allocation. Not the whole thing.