VYM Vs. VIG: I Now Prefer Dividend Growth Due To Yield Spread
Portfolio Pulse from
The article discusses a preference shift from VYM to VIG due to changes in yield and yield spread. VYM is downgraded to HOLD, while VIG maintains a BUY rating. Despite VYM's higher dividend yield and lower P/E ratio, the reduced yield spread favors VIG's valuation.
December 12, 2024 | 3:45 pm
News sentiment analysis
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NEGATIVE IMPACT
VYM has been downgraded to HOLD due to a reduced yield spread compared to VIG, despite its higher dividend yield and lower P/E ratio.
The downgrade to HOLD suggests a less favorable outlook for VYM in the short term. The reduced yield spread compared to VIG indicates a less attractive valuation, which could lead to a decrease in investor interest and potential short-term price decline.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
VIG maintains a BUY rating due to its more attractive valuation as indicated by the reduced yield spread with VYM.
The maintained BUY rating for VIG suggests a positive outlook. The reduced yield spread with VYM indicates a more attractive valuation, likely increasing investor interest and potentially boosting its short-term price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80