Investing 102

[GregWeld]

Originally Posted by redefined

**Just checked, student loans are at 6.8%**

That's not really high rate debt --- so what you have to gauge -- is if you INVEST -- what is your TOTAL RETURN going to look like -- vs -- just paying down the debt and maybe adding some to the principal from time to time as you can.


At 6.8% --- I'd lean toward trying to get total return on my investments. Now if it was above 10% then I'd pay it off asap.

[redefined]

Pick me pick me!!!

So would a mutual fund like this pay dividends? Seeing as how the stocks IN the fund pay dividends, would you get them seeing as how it's inside a 'mutual fund'?

Vanguard Dividend Growth Fund (VDIGX)

[GregWeld]

Originally Posted by redefined

Pick me pick me!!!

So would a mutual fund like this pay dividends? Seeing as how the stocks IN the fund pay dividends, would you get them seeing as how it's inside a 'mutual fund'?

Vanguard Dividend Growth Fund (VDIGX)

Yes -- that's it's primary function... "current dividend income".


So to me - that would be a better investment choice for someone already retired.
If you have TIME on your side -- then you'd be better off with something that will give you growth. In looking at it -- it's growth isn't BAD... given
that it's stated objective is dividend growth not capital growth... So IF YOU CAN CHOOSE TO RE-INVEST THE DIVIDEND having that dividend buy
you more shares.


Here's what THEY say is the funds objective.




The investment seeks to provide, primarily, a growing stream of income over time and, secondarily, long-term capital appreciation and current income. The fund invests primarily in stocks that tend to offer current dividends. It focuses on high-quality companies that have prospects for long-term total returns as a result of their ability to grow earnings and their willingness to increase dividends over time. These stocks typically-but not always-will be large-cap, will be undervalued relative to the market, and will show potential for increasing dividends. The fund seeks to be diversified across industry sectors.


The funds top ten holdings:



McDonald's Corporation (MCD) 3.01%
Microsoft Corporation (MSFT) 2.83%
United Parcel Service Inc (UPS) Class B (UPS) 2.78%
Wal-Mart Stores Inc (WMT) 2.71%
International Business Machines Corp (IBM) 2.71%
Merck & Co Inc (MRK) 2.51%
Target Corp (TGT) 2.51%
Praxair, Inc. (PX) 2.50%
Roche Holding AG (RHHVF) 2.46%
Johnson & Johnson (JNJ) 2.44%