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
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.
Bridger Research Perspective on Seeking Alpha
Bridger Research talks more about VYM: LINK
Bridger Research (Value, Growth, Contrarian, Long/Short Equity)
“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.’”
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.
Thank you so much for all that share through your site. I am based in New Zealand and a couple of platforms have recently been established here which allow us to buy stocks in the US market directly.
I help people with managing their money and getting out of debt – mainly through our church. One of the verses I refer my clients to is Proverbs 27:23 which is why your site caught my eye!! It’s such a great verse.
I am very interested personally in developing more knowledge on stocks. I tried trading for a while – not to much success!! Would I be able to ask you a question please based on your latest post. Why is it that you prefer the sectors you highlight above – Financials, Consumer Defensive, Health Care, Technology and Industrials.
First of all, thank you for helping others with managing their financial resources and getting out of debt. That is a wonderful ministry. Thank you also for telling me about what caught your eye on my blog site. I picked that verse because many do not think about the reality of “flocks and herds” unless they are raising cattle or sheep and understand how valuable they are.
The reasons I like each of these sectors is as follows:
1. I view Technology and Health Care as growth sectors. Although the dividend yields on tech stocks tends to be lower than other sectors, the dividend growth for many tech stocks that pay a dividend tends to be very good. For example, the 5-year dividend growth rate for Microsoft (MSFT) is 10.45% and they have been increasing their dividend for 17 years.
2. Health care not only is growth-focused, but many health care companies pay a significant dividend. For example: ABBV
3. Financials includes a lot of companies that people tend to overlook. I like this sector because it includes not only banks, but insurance companies and other smaller subsectors in the Financial’s sector. Furthermore, financials tend to be able to adjust to changing economic factors with products that businesses and consumers will probably always need. For example, RKT is in an interesting sub-sector of the financials sector.
4. Consumer Defensive: In good times and bad, people tend to buy things like groceries, paper products, tooth paste, shampoo and laundry detergent. 🙂
5. Industrials: Companies that make things are of interest to me. I have seen some industrials that are just amazing for dividend growth. In addition to owning VYM, I but investments in companies like ITW and ETN. They are dividend powerhouses.
Don’t hesitate to ask more questions. I appreciate the opportunity to help others.
P.S. Some day I would love to visit New Zealand!
Thank you so much for your reply! I really appreciate it. You are so kind to share all that you do.
When all this Covid business passes I hope you get to travel down here. The best months are November through to about May.
You are welcome. If you ever want to have some training in how I pick individual stocks, let me know. However, you can probably tell what I look for as you read my posts. 🙂
Really? That would be wonderful! I am trying to piece it together from your posts but all is not yet clear. How does the training work?
On Tue, Nov 24, 2020 at 10:14 AM Know Your Flocks & Herds wrote:
> proverbs27flocks commented: “You are welcome. If you ever want to have > some training in how I pick individual stocks, let me know. However, you > can probably tell what I look for as you read my posts. :-)” >
There are a couple of options. I don’t charge for any training, so whatever works for you is something we can do. One option is for me to send you the lessons as PDFs. You can read them and then send me questions. That isn’t my favorite method. There is a series of five that I have taught over the years.
Another method (which is better) is to use something like ZOOM to connect. I can then share my screen with you and you can ask questions as we go. I use ZOOM to teach a class for some pastors in India and for our own church small group during Covid-19. Each lesson would be about an hour long, but could be longer if you have a lot of questions.
I can’t believe you do not charge for your training. Thank you so very much that you are prepared to give your time.
The Zoom method sounds great. New Zealand is 19 hours ahead of your time zone it would appear. It is currently 11.25 am on Tuesday 24th November here. I work from home so am available to connect whenever suits you.
On Tue, Nov 24, 2020 at 11:01 AM Know Your Flocks & Herds wrote:
> proverbs27flocks commented: “There are a couple of options. I don’t charge > for any training, so whatever works for you is something we can do. One > option is for me to send you the lessons as PDFs. You can read them and > then send me questions. That isn’t my favorite method. There is a” > Respond to this comment by replying above this line > > New comment on *Know Your Flocks & Herds * > > > > *proverbs27flocks* commented > > on Will VYM Have Vim? > . > > in response to *Nicola Happy*: > > Really? That would be wonderful! I am trying to piece it together from > your posts but all is not yet clear. How does the training work? Nicola
If you are available at 9 AM (Wednesday?) your time, that would be 2 PM Tuesday here. I could send a ZOOM meeting for tomorrow, if you have time. It might be good to just get to know each other so that I can tailor the training to suit your needs. I just have a few questions to ask about your current knowledge and experience so that we use the training time to the best advantage. If you are agreeable, I will send a ZOOM appointment via email.
Yes that would be wonderful! I am available at that time. I will look forward to talking to you.
On Tue, Nov 24, 2020 at 12:52 PM Know Your Flocks & Herds wrote:
> proverbs27flocks commented: “If you are available at 9 AM (Wednesday?) > your time, that would be 2 PM Tuesday here. I could send a ZOOM meeting for > tomorrow, if you have time. It might be good to just get to know each other > so that I can tailor the training to suit your needs. I just ” >
Email with ZOOM link was sent.