In many of the dividend groups I am a member of VOO seems to be a popular choice in dividend portfolio’s. While I prefer SCHD, VOO can be a good EFT as a core position in your portfolio.
One thing you should always do is see what the holdings are in an EFT to make sure you are not investing too heavily in once stock or sector. Most people forget to see what they are actually buying if they by an EFT.
VOO’s top the holdings are: Apple, MicroSoft, Amazon, Google, Berkshire, Tesla, United Health, Johnson & Johnson and Exxon. Keep this in mind as you decide what is the right investment for
you.
On the surface VOO offers a 1.63% dividend yield with a 6.37% five year dividend growth rate. Nothing crazy here and in many cases I might just move on since I have better options for current dividend and dividend growth rate. However, I always like to do a deeper dive before I make up my mind.
As you can see from the chart below VOO, would have given you a 215% 10 year return on your initial investment with dividend reinvestment. Over that time your dividend income would have also appreciated by 190%. VOO is not an income EFT but it has a history of providing you with a good growth. Because of this, I use VOO as a core dividend portfolio position. It gave me more exposure to some stocks not in SCHD and still provided good overall growth, even though I am not a huge fan of the current dividend.
| Initial Investment | $10,000.00 | Avg Yrly Price | |||||||
| Begin | Beg Year | Year End | Dividend | Shares from | Year End | Year End | Yearly | ||
| Year | Value | Stock$ | Shs Owned | Dividend Yield | Income | Reinvestment | Shares | Value | Change |
| 2013 | $10,000.00 | $135.88 | 73.59 | 2.17% | $217.00 | 1.43 | 75.02 | $12,652.78 | 26.53% |
| 2014 | $12,652.78 | $168.66 | 75.02 | 2.15% | $272.03 | 1.53 | 76.55 | $14,332.12 | 13.27% |
| 2015 | $14,332.12 | $187.23 | 76.55 | 2.39% | $342.54 | 1.89 | 78.43 | $13,802.11 | -3.70% |
| 2016 | $13,802.11 | $175.97 | 78.43 | 2.24% | $309.17 | 1.61 | 80.04 | $16,697.61 | 20.98% |
| 2017 | $16,697.61 | $208.61 | 80.04 | 1.94% | $323.93 | 1.41 | 81.45 | $20,464.58 | 22.56% |
| 2018 | $20,464.58 | $251.25 | 81.45 | 2.21% | $452.27 | 1.85 | 83.30 | $19,816.31 | -3.17% |
| 2019 | $19,816.31 | $237.89 | 83.30 | 1.98% | $392.36 | 1.46 | 84.76 | $25,365.64 | 28.00% |
| 2020 | $25,365.64 | $299.26 | 84.76 | 1.59% | $403.31 | 1.24 | 86.00 | $30,137.10 | 18.81% |
| 2021 | $30,137.10 | $350.42 | 86.00 | 1.27% | $382.74 | 0.98 | 86.99 | $37,281.09 | 23.70% |
| 2022 | $37,281.09 | $428.59 | 86.99 | 1.69% | $630.05 | 1.60 | 88.59 | $31,590.41 | -15.26% |
| 2023 | $31,590.41 | $356.59 | 88.59 | ||||||
|
10 Investment Year Change
|
215.90% | ||||||||
|
10 Price Change
|
162.43% | ||||||||
|
10 Year Dividend Change
|
-22% | ||||||||
|
10 Dividend Income Change
|
190.35% |
What do you think? Does VOO have a place in your portfolio?