Best Low Price Companies To Watch In Right Now

Best Low Price Companies To Watch In Right Now: Vanguard Dividend Appreciation ETF (VIG)

Vanguard Dividend Appreciation ETF (the Fund) is an open-end investment company, or mutual fund. It seeks to track the performance of an index that measures the investment return of common stocks of companies that have a record of increasing dividends over time. Vanguard Dividend Appreciation ETF is an exchange-traded share class of Vanguard Dividend Appreciation Index Fund (the Fund), which employs a passive management or indexing investment approach designed to track the performance of the Dividend Achievers Select Index (the Index).

The Index is a subset of the Broad Dividend Achievers Index and is administered for Vanguard by Mergent, Inc. The Fund attempts to replicate the Index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.

Advisors' Opinion:

• [By Chuck Saletta]

  By increasing the money you're investing now, you can improve your nest egg when the trust funds do empty, better protecting your lifestyle from those pending benefit cuts. Here are four investments to consider as you sock away extra money to make up for Social Security's shortfall:

  The S&P Depository Receipts (NYSEMKT: SPY  ) is one ETF that tracks the S&P 500, providing a low-cost way to get stock market return potential to help build your nest egg. For the potential of providing portfolio ballast, the iShares Barclay's US Treasury Bond (NYSEMKT: GOVT  ) ETF owns U.S. Treasury bonds. With interest rates so low, the returns from the bonds in that ETF are not likely to be stellar, but they at least do carry a government-backed guarantee of repayment. If you're worried about inflation ravaging your purchasing power over time, the iShares Barclay's TIPS Bond (NYSEMKT: TIP  ) ETF offers a way to buy government bonds that w! ill increase along with inflation. But while those bonds may be able to keep up with the official inflation rate, they won't help much if your costs, like many people's, increase faster than inflation as you age. For the potential of an income stream that may grow faster than inflation but carries more risk of potential default or reduction, Vanguard's Dividend Appreciation ETF (NYSEMKT: VIG  ) may fit the bill. It's a low-cost way to invest in companies with solid track records of increasing their dividends. Still, there's a trade-off in that unlike Treasury bonds, there are no guarantees that dividends will get paid.

  No matter how you invest, the reality is that even lousy investing beats not investing at all. It certainly beats waking up sometime in the next two decades to find that your Social Security check has been slashed by a fourth and not having any alternative source of cash.

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividen! d Appreci! ation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

• [By Jon C. Ogg]

  5. Dividends, stock buy-backs, capex, and M&A all increase at a double-digit rate – This is led by a lot of cash flow, underleveraged balance sheets, and possible great places to use cash. The argument for higher cap-ex is as follows: “Pent-up demand and aging of plant, equipment and technology argue for increases in those key areas.”

  ETF Recommendation: Vanguard Dividend Appreciation ETF (NYSEArca: VIG) for dividend growers, and PowerShares Buyback Achievers (NYSEArca: PKW) for buyback stocks. Hint: the buyback ETF rose by 45.5% in 2013 after dividend adjustments versus 28.8% for the dividend growth ETF.

  6. The U.S. dollar appreciates as U.S. energy and manufacturing trends continue to improve.

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/best-low-price-companies-to-watch-in-right-now.html