Reading:If I Could Buy Only 5 Stocks in the Vanguard Value ETF Through 2025, I’d Pick These 3 High-Yield Blue-Chip Dividend Stocks and These 2 Top Tech Stocks
It has net assets of $186 billion and an expense ratio of just 0.04%. Vanguard Value ETF(NYSEMKT: VTV) One of the lowest cost Exchange Traded Fund (ETF) (ETF) is there. The fund’s minimum investment is just $1, so it’s easy to build a position incrementally over time. This ETF contains 336 stocks across a variety of sectors and has a yield of 2.3%, which is higher than the ETF’s yield of 1.3%. Vanguard S&P 500 ETF.
ETFs remain a great way to passively invest in top value stocks. However, some investors may wish to enhance their exposure to the Fund’s outstanding investment opportunities.
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If I could buy just 5 out of 100 shares of the Vanguard Value ETF by 2025, I would. coca cola(NYSE:KO), pepsico(NASDAQ:PEP)and chevron(NYSE:CVX) for passive income, and broadcom(NASDAQ:AVGO) and oracle(NYSE:ORCL) For growth. Here’s why:
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Coca-Cola and PepsiCo are both dividend kings. Coca-Cola has paid and increased its dividend for 62 consecutive years, and Pepsi has increased its dividend for 52 consecutive years. Both companies use dividends as an important means of returning profits to investors. However, weak consumer spending and price pressure have led to recent declines in both stocks.
Cola is Significant increase over the year However, it fell 8.7% last month. The sell-off accelerated after Coca-Cola reported weak financial results. Pepsi, on the other hand, is up less than 4% over the past three years as Pepsi faces declining sales across its beverage brands, as well as Pepsi-owned Frito-Lay and Quaker Oats.
Coke and Pepsi have incredible product portfolios and their challenges appear solvable, making the decline in both stocks a great buying opportunity for patient investors.
Chevron may operate in a different industry than Coke or Pepsi, but the reasons for buying the stock are similar. Chevron has increased its dividend for 37 consecutive years, and its yield is a whopping 4.3%, significantly higher than the average Vanguard Value ETF holding.
Although low oil prices are putting pressure on energy companies, Chevron has a highly efficient and diversified exploration and production portfolio and large refining and marketing operations.
The company’s strategy is built assuming fairly mediocre oil prices, with an upside scenario assuming oil prices remain at $70 from 2025 to 2027, and a down scenario assuming oil prices at $50 over the same period. It is assumed that it will become a dollar amount. Even at $50 oil, Chevron can support its dividend and fund modest capital spending plans. For context, West Texas Intermediate crude oil prices are currently around $67 per barrel, the lowest level of 2024.
At first glance, it may seem strange that Broadcom and Oracle are included in the Vanguard Value ETF and not included in the ETF. Vanguard Growth ETF. Both companies have accelerated revenue growth in recent years, pushing their market capitalizations to new heights. But historically, Broadcom and Oracle represented the more value-oriented parts of the technology sector. Both companies have also increased their dividends.
Broadcom manufactures hardware and software solutions for cloud infrastructure, data centers, networking, broadband, wireless, storage, industrial applications, enterprise software, and more. This is a comprehensive way to invest in the essentials of supporting global connectivity and infrastructure such as Ethernet switches to support AI workloads.
Oracle is a veteran technology company with experience in database software. These days, however, the company’s cloud computing is driving high-margin sales growth. The following graph shows Oracle’s trailing 12-month earnings over the past 15 years.
Oracle began paying dividends in 2009. Initially it was $0.05 per share per quarter and has since increased to $0.40 per share. Similarly, Broadcom’s quarterly dividend started at just $0.007 per share in 2010, but has skyrocketed to $0.53 per share.
Over the past year, Oracle stock is up 72%, while Broadcom’s stock is up 114%. This increase has lowered yields for both companies, with Oracle now yielding just 0.9% compared to Broadcom’s 1.2%. Still, both companies have demonstrated a commitment to growing revenues and returning profits to shareholders through dividends, which could appeal to investors looking for a combination of value and passive income.
Broadcom and Oracle remain two of the top tech stocks to buy right now, even though they’re hovering near all-time highs. Broadcom soared 4.2% on Oct. 29 on news that the company is collaborating with OpenAI on a new chip. The company has expanded its artificial intelligence (AI) offerings, but AI is just one aspect of this diversified giant.
ORCL Revenue (TTM) Chart
Although Oracle’s sales soared in the late 2000s and early 2010s, it became a slow-growing, sluggish technology company and underperformed. AI has opened the door to new opportunities for Oracle. Oracle Cloud offers servers, storage, applications, and other services that have proven to be simpler and more flexible than competing services.
Broadcom and Oracle have established a foothold in their respective industries, and their profits create many opportunities to fund new projects. Both companies are a great way to invest in technology while collecting growing dividends.
Have you ever felt like you missed out on buying the most successful stocks? Then you’ll want to hear this.
In rare cases, our team of expert analysts “Double Down” stock Recommendations for companies that are likely to take off. If you’re already worried that you’re missing out on an investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves.
Amazon: If you invested $1,000 when it doubled in 2010; That’s $22,292!*
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We currently have “double down” alerts on three great companies, and we may not see an opportunity like this again anytime soon.
daniel ferber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, Oracle, Vanguard Index Fund – Vanguard Growth ETF, Vanguard Index Fund – Vanguard Value ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom. The Motley Fool has Disclosure policy.
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