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Explorer ○○

Thoughts on PRDGX for Retirees

Any thoughts on PRDGX to add some growth to VEIPX/VYM and VWIAX combo for retirees that are relatively conservative and need income?

Seems like a solid fund with good total return and lower risk/volatility.

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Explorer ○

Re: Thoughts on PRDGX for Retirees

I'm retired and own the fund in my portfolio.   Its one of a very few actively managed funds I own in that space (most large cap assets are indexed).      I had the privilege of watching lead PM Tom Huber speak, and his talk matches his walk.  Be aware the fund will lag in up markets, typically.  I'm counting on it for downside outperformance and preservation of equity capital.  

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Explorer ○○

Re: Thoughts on PRDGX for Retirees

Thanks for your contribution FarcePoobah.

Any other thoughts out there by any one?

As a retiree, do you hold PRDGX (T. Rowe Price Dividend Growth Fund -- Large Blend) in your portfolio, and if so, why?

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Contributor ○

Re: Thoughts on PRDGX for Retirees

I think PRDGX is an excellent fund for retirees.  As a retiree myself, 81% percent of my total portfolio is in PRWCX.  But if I didn’t have access to PRWCX, I would certainly use PRDGX for a large portion of my portfolio.  May even buy some later on if the market takes a big dive.  TRP is an outstanding active management shop.  

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Explorer ○○

Re: Thoughts on PRDGX for Retirees

Any one else want to weigh in here ... YBB, Racqueteer, Rila, others?

I am considering PRDGX as an option in balancing VEIPX as part of a strategy of adding more income/growth to Wellesley (sort of a VYM plus VIG complement to Wellesley). And no, I don't just want to use to Wellington or Wellesley/Wellington and just forget about it at this early stage in my retirement. (And yes, I do have PIMIX and some PCI CEF to throw off income as well).

There seems to be a little Ying/Yang thing going with the two OEFs, when VEIPX is flat or dropping, PRDGX is up, and when Value is doing well versus Growth, VEIPX kicks in full-time.

Yes, I could just go with VYM and VIG but I find I am too easily focused on daily market returns when I use ETFs and have a greater tendency to buy or sell or switch ETFs based on short-term performance. I am moving away from ETFs and back to OEFs, using Wellesley as my base. I am hoping that that route does a better job of keeping me from shooting myself in the foot.

Any feel for PRDGX for the purpose intended here?

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Explorer ○○○

Re: Thoughts on PRDGX for Retirees

Your Inquiry is Top Notch.

I am soon to be retired [ three to four years ] And I'm conflicted which Fund to utilyze as my Core \Equity Anchor; PRDGX or USMV.

I've posted this question, did nor receive many replies, but the responses were mostly 50/50, w/a slight edge, if memory serves me right, to USMV.

I don't believe you could go wrong w/either choice.

Signed,

NoFriends1

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Explorer ○○

Re: Thoughts on PRDGX for Retirees

Thanks NoFriends!

USMV is certainly a solid, low vol. ETF. Good growth but not a lot of short-term cash. It seems in terms of actual dividends, PRDGX is slightly better. USMV is, of course, much cheaper.

I had USMV for a bit but reconsidered because of my  tendency to play with ETFs and not hold on for the long term.

I guess because as YBB had pointed out VEIPX is simply adding more of the same stocks to Wellesley in order to boost income, I am looking for a VDIGX (closed) type fund to complement those two and came up with PRDGX as one of the best alternatives to VDIGX.

Like a total idiot, I sold VDIGX before it closer to go in the ETF direction. Now, of course, wish I could get back in!

Do you happen to recall where the post might be that you refer to? Was it on the Old Forum? Do you recall what category it might have been?

The M* search in Discuss has always been poor.

 

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Participant ○○

Re: Thoughts on PRDGX for Retirees

@Newer_Retiree: " ...  I find I am too easily focused on daily market returns when I use ETFs and have a greater tendency to buy or sell or switch ETFs based on short-term performance. I am moving away from ETFs and back to OEFs .... "

Exactly my weakness and why OEF's have reappeared in my portfolio.  As for the CEF's, I do try to think only weekly about them but their daily volatility does make me twitch.

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Explorer ○○○

Re: Thoughts on PRDGX for Retirees

Sorry, looked and looked and could not find it on the old forum.

Signed,

NoFriends1

George Eppler
Senior Attorney
Associated Counsel for the Accused
Division of King County Department of Public Defense
(206) 477-8931 *Please note my new phone number as of 11/2/15
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