What is Vim?

Vim is not a commonly used word. It would be a word I could use to describe our grandchildren. It means “robust energy and enthusiasm.” But it isn’t really a word I would use to describe any investment I would buy and hold. Most of the investments in our portfolio are more like the tortoise in the tortoise and the hare story. Slow, plodding, but always making progress. One such tortoise is made up of over 400 tortoises.

Reasons to Like VYM

VYM meets all of the dividend requirements I want to see in an ETF.

I have written more than once about this ETF. Most of the time VYM receives mention when I talk about various stocks or other ETF investment choices. I am writing this today because of an opinion piece I saw on Seeking Alpha. A link to the opinion piece is given at the end of this post.

The reasons I like VYM continue to be: 1) Dividend growth and a history of growing dividends, 2) Over 400 holdings for good diversification, 3) Good sector diversification without too much weighting on any single sector, 4) A low expense ratio, and 5) a Five-Year dividend growth rate of 8.29%. I like that type of growth. The following images are helpful in understanding VYM.

The Top Ten Are Solid Large Cap Dividend Growth Stocks
The focus is in sectors I like: Financials, Consumer Defensive, Health Care, Technology and Industrials.

Bridger Research Perspective on Seeking Alpha

Bridger Research talks more about VYM: LINK

Bridger Research (Value, Growth, Contrarian, Long/Short Equity)

Bridger Research update received via email alert.

“We are investment research professionals covering a broad range of equities, REITs and other asset classes as well. Our philosophy is based upon a wise statement from Peter Lynch: ‘The secret of making money in stocks is not to get scared out of them.’ That is why we strive to provide high-quality information so our followers can make wise investment decisions even during exuberant times, while other market participants claim: ‘This time it’s different.’”

Full Disclosure

Cindie and I own 1,745 shares of VYM as a long-term investment. As a result, it is in the top ten investments we hold.