Originally Posted by HFWR
I've noticed this with "value" funds, too. What kind of "value" fund pays the same dividend as a "blend" fund?
The kind that includes value stocks that don't pay dividends.
It isn't a pre-requisite that a value stock pay a dividend. IIRC, the dividend yield DFA's large value fund [DFLVX] is lower than Vanguard's TSM fund.
I like to think of it this way:
1) value stocks are a subset of all the stocks out there; and
2) high yielding dividend paying stocks are a subset of value stocks.
In any case, I wouldn't consider Vanguard's new fund, VDAIX either a value fund or a high dividend paying fund [like VEIPX or DVY]. It's simply a fund that only holds stocks of those companies that have increased their dividends for the past 10 consecutive years, which just happens to land it in the large blend category. Note that the index VDAIX follows does not say anything about a screen for high dividend yielding stocks.