Vanguard Dividend Growth Fund (VDIGX) has officially begun a leadership transition, the firm announced on March 23, 2023. Effective Jan. 1, 2024, the portfolio manager of the fund, Donald Kilbride, will step down from his role and transition to a new position with the fund advisor. Kilbride has been the portfolio manager of VDIGX since 2006 and has been with Vanguard for over 20 years.
Kilbride will be succeeded by two experienced Vanguard investment professionals, Michael Johnson and Christopher Alwine. Johnson has been with Vanguard for over 20 years and has managed several of the firm's equity funds. Alwine has been with Vanguard for over 15 years and has experience managing both equity and fixed income funds.
The Vanguard Dividend Growth Fund (VDIGX) aims to provide long-term growth of capital and income by investing in high-quality, large-cap companies that have the potential for sustainable dividend growth. The fund has a focus on companies with a history of paying and increasing dividends over time.
The appeal of the best dividend mutual funds should be clear: They offer a sizable dividend today, and they can grow in the future, providing investors with a reliable source of income and the potential for capital appreciation. Dividend-paying stocks have historically outperformed non-dividend-paying stocks, making dividend mutual funds an attractive option for investors seeking long-term growth.
In recent years, the fund has performed well, with a 5-year average annual return of 15.95% and a 10-year average annual return of 12.31%. The fund has a relatively low expense ratio of 0.23%, making it an attractive option for investors looking for a cost-Effective way to invest in dividend-paying stocks.
Last week's column “Are Dividend Funds All That?” showed that equity funds that hold dividend-paying stocks have thrived over the long term. The Vanguard Dividend Growth Fund (VDIGX) is no exception, with a track record of strong performance over the years.
Good news. Vanguard recently reopened Vanguard Dividend Growth (VDIGX, $26.39), one of its very best funds. What's more, the fund is back to a lower 0.23% expense ratio. The fund had previously been closed to new investors due to capacity constraints, but Vanguard has now reopened the fund to new investors.
Stocks with high dividend yields have been beating those with growing payouts in recent years. But the growers can win out over the long term. The Vanguard Dividend Growth Fund (VDIGX) invests in companies with a history of growing dividends, which can lead to higher total returns over time.
The economy has that eerie “what's coming next” feeling to it, and we're all looking for ways to secure our money. Investing in dividend funds like the Vanguard Dividend Growth Fund (VDIGX) can provide investors with a reliable source of income and the potential for long-term growth.
Vanguard Equity Income Fund Investor Shares (VEIPX) and Vanguard Dividend Growth Fund Investor Shares (VDIGX) are two reliable Vanguard mutual funds that investors can consider when looking for exposure to dividend-paying stocks. Both funds have a focus on high-quality companies with a history of paying and increasing dividends over time.
