Unlocking Dividends: Vanguard's VYMI ETF and the High Dividend Yield Index

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VYMI - Market Position

Ticker Symbol Product Type Asset Class Strategy Payment Frequency Geographic Focus Expense Ratio Sponsor
VYMI ETF Equity Dividend ETF International High Dividend Yield Quarterly Global 0.25% Vanguard

VYMI Overview - The Vanguard International High Dividend Yield ETF

The VYMI ETF (Vanguard International High Dividend Yield) is an actively managed fund that aims to surpass the average yield on international stocks while providing opportunities for growth of principal. With a minimum of 90% of its assets invested in dividend-paying stocks of established companies outside the United States, VYMI offers investors exposure to global markets.

VYMI's investment strategy relies on fundamental analysis to identify undervalued companies with potential for consistent dividend growth. The fund's diversified portfolio, managed by individual segments, allows for effective risk management.

As of April 30, 2024, VYMI boasts an average yield, according to Morningstar. Investors can also track VYMI's latest stock price and dividend history on platforms like TipRanks.

While past performance does not guarantee future results, VYMI's focus on high-quality international dividend-paying stocks may appeal to investors seeking income that exceeds the average yield of the broader market, along with potential long-term growth of principal.

VYMI - Price / Yield

VYMI - Portfolio and Asset Allocation

The VYMI ETF (Vanguard International High Dividend Yield) is a fund focusing on high dividend yield stocks across various sectors. The top holdings showcase a diverse mix of companies from different industries, including Toyota Motor Corp., Nestlé, Shell plc (UK), Novartis, Roche Holding, Hsbc Holdings Plc (UK), BHP Group Ltd, Siemens Ag (UK), TotalEnergies SE, and Vanguard Cash Management Market Liquidity Fund.

The sector breakdown further emphasizes the fund's diversification strategy, with investments spread across multiple sectors. Financials (35.24%) and Energy (10.05%) comprise the largest allocations, followed by Industrials (9.75%) and Consumer Cyclical (9.44%). This sector distribution suggests that the fund aims to balance income generation and growth potential while managing risk through exposure to various industries.

The presence of companies like Shell plc (UK), Hsbc Holdings Plc (UK), Siemens Ag (UK), TotalEnergies SE, and BHP Group Ltd among the top holdings indicates a focus on established, dividend-paying companies with strong market positions. These companies often have a history of consistent dividend payouts and are generally considered to be stable investments.

However, it's important to note that the fund also has exposure to sectors like Communication (4.63%) and Technology (3.36%), which can be more volatile and sensitive to market conditions. Nonetheless, the relatively lower allocations to these sectors suggest that the fund managers are cautious about overexposure to potentially risky areas.

Top 10 Holdings

As of April 30, 2024, the top 10 holdings of the Vanguard International High Dividend Yield ETF (VYMI) are:

Name Weight
Toyota Motor Corp. 2.27%
Nestlé 2.13%
Shell plc (UK) 1.62%
Novartis 1.50%
Roche Holding 1.36%
Hsbc Holdings Plc (UK) 1.12%
BHP Group Ltd 1.09%
Siemens Ag (UK) 1.07%
TotalEnergies SE 1.07%
Vanguard Cash Management Market Liquidity Fund 2.58%

Asset Allocation

The Vanguard International High Dividend Yield ETF (VYMI) has the following asset allocation as of April 30, 2024:

Sector Weight
Financials 35.24%
Energy 10.05%
Industrials 9.75%
Consumer Cyclical 9.44%
Basic Material 7.89%
Consumer Defensive 7.57%
Health Care 5.66%
Utilities 4.88%
Communication 4.63%
Technology 3.36%
Real Estate 1.53%

Dividend Yield and Distribution History

Section Details

VYMI Dividend Data

The Vanguard International High Dividend Yield ETF (VYMI) distributes quarterly dividends. The most recent ex-dividend date was on March 15, 2024, with a dividend payout of $0.6158 per share on March 20, 2024.

VYMI Dividend Yield

As of April 26, 2024, the 30-day SEC yield for VYMI stands at 2.82%. This indicates that for every $100 invested in the fund, investors would receive approximately $2.82 in dividends per year, assuming a stable yield.

VYMI Dividend History

VYMI maintains a track record of issuing quarterly dividends. These payments may vary based on the performance of the underlying dividend-paying stocks held within the fund.

VYMI Dividend Growth

The dividends disbursed by VYMI are influenced by the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's strategy focuses on companies with a history of consistent dividend growth, potentially leading to increasing dividend payments over time, although growth is not guaranteed.

VYMI Dividend Stability

VYMI aims to provide a relatively steady income stream by investing in high-quality, dividend-paying stocks of larger international companies. However, dividend payments are subject to fluctuations due to changes in market conditions or the performance of the underlying stocks in the fund's portfolio.

VYMI - Chart

VYMI - Comparative Analysis

Let's compare VYMI with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)

Investment Focus High-quality, dividend-paying stocks of larger international companies Top 80 high dividend-yielding companies within the S&P 500 Index Relatively high dividend-paying equities in non-U.S. developed markets
Current Yield 4.89% 4.57% 5.77%
Expense Ratio 0.22% 0.07% 0.51%
Investment Strategy Seeks to track the performance of the FTSE All-World ex US High Dividend Yield Index Seeks to track the performance of the S&P 500 High Dividend Index Seeks to track the investment results of an index composed of relatively high dividend-paying equities in non-U.S. developed markets
Strengths Provides exposure to high-quality, dividend-paying international stocks Low cost ETF that seeks to provide a high level of dividend income Provides exposure to established, high-quality international companies
Weaknesses Investment returns and principal value will fluctuate Highly-correlated positions in a portfolio may signal a lack of diversification Funds with low coverage may not fully represent the fund’s carbon characteristics given the lack of coverage

Dividend History (Last 5 distributions)

Ex-Dividend Date Cash Amount Record Date Pay Date
Mar 14, 2024 $0.62 Mar 17, 2024 Mar 19, 2024
Dec 17, 2023 $0.86 Dec 18, 2023 Dec 20, 2023
Sep 18, 2023 $0.68 Sep 19, 2023 Sep 21, 2023
Jun 20, 2023 $1.19 Jun 21, 2023 Jun 23, 2023
Mar 19, 2023 $0.31 Mar 20, 2023 Mar 22, 2023


Technical Analysis

Additional Information and Risks

In 2024, investors seeking above-average dividend yields turned their attention to the Vanguard International High Dividend Yield ETF (VYMI), an exchange-traded fund (ETF) designed to track the performance of the FTSE All-World ex US High Dividend Yield Index. This index encompasses stocks of companies located in developed and emerging markets, excluding the United States, characterized by high dividend yields.

The VYMI ETF offers investors exposure to a diversified portfolio of international stocks, with a focus on companies forecasted to have above-average dividend payouts. It seeks to mirror the performance of its benchmark index, providing investors with an opportunity to stay up to date with dividend data and track the latest stock prices.

Managed by the Vanguard Group, the fund's dividend payout history and dividend yield are proprietary to Morningstar, reflecting the fund’s commitment to transparency and performance tracking. While past performance may indicate the fund's ability to generate income, it's essential to note that dividends are not guaranteed, and the fund's performance may vary over time due to market fluctuations and management fees.

Investing in international markets through ETF shares like VYMI carries inherent risks, including currency fluctuations, emerging market volatility, and less developed legal frameworks. However, for investors seeking diversified exposure and potential dividend income from international stocks, VYMI offers a convenient and accessible investment option.