FWIW, below is my own post from 2020 about dividend distributions of VIG and VTSAX in the 2008-2009 recession.
It's merely one data point of how distributions happened to play out for two funds during a single period of time. I wouldn't draw any broad conclusions; neither VIG's better performance during the recession, nor VTSAX's better performance afterwards, are something to rely on in the way that bond coupon payments can be relied on.
It's merely one data point of how distributions happened to play out for two funds during a single period of time. I wouldn't draw any broad conclusions; neither VIG's better performance during the recession, nor VTSAX's better performance afterwards, are something to rely on in the way that bond coupon payments can be relied on.
I've been tracking the dividends for both Vanguard Dividend Appreciation (VIG ETF) and Total Stock Market Fund (VTSAX mutual fund).
Below is a table of dividends/share for each fund during the 2008-2009 recession and recovery. First column is the quarterly ex-div date. Next two columns are the quarterly div/sh and trailing year total for VIG. Next two columns are the same for VTSAX. An * marks the high trailing year dividend total, and a ^ marks when the fund once again reached that level. The numbers are all nominal.
VTSAX saw trailing year dividends decline 9 months sooner than VIG (June 2008 vs March 2009) and its recovery didn't occur until 18 months later (Sept 2012 vs Mar 2011). VTSAX recovered after 4 years 3 months and VIG in 2 years, at least in nominal terms.
So - at least for the 2008-2009 bear market - the dividend-focused VIG suffered less in terms of dividend cuts and had a quicker recovery. Possibly due to VIG's loading on "quality" stocks, or by never having invested in financial stocks that cut dividends (because said stocks didn't meet the criteria for purchase even prior to the recession).
Since that time, VTSAX dividend payouts have made up the difference and actually had higher rate of increase in div/sh (ironic, given VIG's focus on dividend appreciation).Code:
VIGVTSAXEx-Divdiv/shtrailing yeardiv/shtrailing year3/26/20070.1840.1466/25/20070.1910.1389/24/20070.2170.15712/20/20070.2810.8730.1880.6293/25/20080.220.9090.1520.6356/24/20080.2810.9990.1530.65 *9/24/20080.2681.050.1430.63612/22/20080.2571.0260.1610.6093/25/20090.2761.082 *0.1350.5926/24/20090.2311.0320.1090.5489/24/20090.2310.9950.120.52512/22/20090.2410.9790.1750.5393/25/20100.2250.9280.1150.5196/24/20100.250.9470.1310.5419/24/20100.2670.9830.1450.56612/22/20100.3061.0480.170.5613/25/20110.2721.095 ^0.1370.5836/24/20110.2831.1280.1380.599/23/20110.2851.1460.1490.59412/21/20110.3321.1720.1750.5993/26/20120.2721.1720.1510.6136/25/20120.3171.2060.1680.6439/24/20120.3231.2440.1770.671 ^12/20/20120.4981.410.2650.761
Statistics: Posted by sycamore — Thu Jan 23, 2025 4:19 pm