Executive Summary: Dividend Growth has long been a cornerstone of my Portfolios. But after three years of lagging results and a leadership transition from Don Kilbride to Peter Fisher, it’s time to reassess. In this article, I examine what’s changed, what hasn’t, and whether this once-great fund still deserves a place in your portfolio.
Dividend Growth (VDIGX) is one of Vanguard’s standout actively managed funds. Unfortunately, it’s currently standing out for the wrong reasons. After three years of underperformance, investors must decide whether the wheels have come off or the road's bumpiness will again smooth.
To help you answer the question, I first sat down with Dividend Growth portfolio manager Peter Fisher and his colleague Tim Casaletto—you can read my exclusive interview here. This week, I’m taking a deeper dive into the fund itself, one I’ve owned for years and long considered Vanguard’s best core offering.
Deciding whether to stick with or move on from a fund you own is never an easy decision. One “trick” I like to use is to flip the question: If I didn’t already own the fund, would I buy it today?
So, let’s look at Dividend Growth through that lens—as if we were new investors sizing up the fund for the first time.