VYM - VYM: Grab This Yield ETF For Its Diversification And Low Cost

2024-01-22 16:35:03 ET

Summary

• The S&P 500's dividend yield has dropped to 1.5% as low-dividend chip stocks surge, leaving high-yield defensives and cyclicals behind.
• Vanguard High Dividend Yield Index Fund ETF Shares is seen as a relative bargain, with a high 3.1% trailing 12-month dividend yield.
• The VYM ETF has a solid portfolio, low cost, and attractive valuation, although there are technical challenges in breaking through resistance levels.
• I point out important price levels to watch on the VYM chart.

The S&P 500’s (SP500) dividend yield has sunk to near 1.5% as U.S. large-cap equities have surged to fresh all-time highs in early 2024. It’s a head-scratcher for many yield-focused investors, but a resurgence in AI euphoria has catapulted many low-dividend chip stocks to levels unseen. Blue-chip dividend aristocrats, however, have generally lagged to start 2024. ...

For further details see: