Vanguard Announces Major Profit-Sharing Boost for Qualifying Employees

By

Image of Vanguard via David Swanson, Philadelphia Inquirer.

Vanguard has notified employees who qualify for profit-sharing that it will increase their dividends by 16.5 percent for the previous year, writes Joseph DiStefano for the Philadelphia Inquirer.

The profit-sharing boost follows the $1 trillion in new customer assets and market gains added by the Malvern-based investment giant in 2017.

According to Daniel Wiener, publisher of the Independent Adviser for Vanguard Investors newsletter, this is the biggest change Vanguard has approved in two decades.

For last year, profit-sharing dividends for qualifying employees will be $248.45 per point, compared to $213.26 in 2016.

[uam_ad id=”72116″]

Advertisement

According to Wiener, Vanguard’s points have appreciated faster than the S&P 500 since company founder John Bogle started the plan in 1984. He said that Vanguard has increased the value of its partnership points to 72 times their initial level, compared to the S&P 500’s 33 times.

Vanguard spokesman John Woerth said the plan pays out on the basis of the company’s performance metrics over the last three years. This enables employees “to share in the value that they create for our fund investors.”

Read more about the profit-sharing boost in the Philadelphia Inquirer here, and check out previous VISTA Today coverage of Vanguard here.

[uam_ad id=”73615″]

Connect With Your Community

Subscribe to stay informed!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Advertisement
Creative Capital logo