Greetings,
I have held VYM for several years as a ``value'' tilt.
The prospectus for VYM states:
``Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.''
Currently, the top stock in VYM, with 6.0% portfolio weight is AVGO (Broadcom Inc., yield 1.17%).
In 2024, AVGO share price approximately doubled, so its yield dropped in half, which accounts for 1% yield. Thus it is no longer a high dividend yield stock. AVGO now has a P/E of 188.
It seems there is an annual review of the FTSE High Dividend Yield index.
Can I just wait for the index to adjust to remove this high growth stock (and lock in the gain)?
Best,
sgoak
I have held VYM for several years as a ``value'' tilt.
The prospectus for VYM states:
``Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.''
Currently, the top stock in VYM, with 6.0% portfolio weight is AVGO (Broadcom Inc., yield 1.17%).
In 2024, AVGO share price approximately doubled, so its yield dropped in half, which accounts for 1% yield. Thus it is no longer a high dividend yield stock. AVGO now has a P/E of 188.
It seems there is an annual review of the FTSE High Dividend Yield index.
Can I just wait for the index to adjust to remove this high growth stock (and lock in the gain)?
Best,
sgoak
Statistics: Posted by sgoak — Sat Jan 25, 2025 5:43 pm — Replies 0 — Views 103