Investors can choose between Vanguard High Dividend Yield ETF and Vanguard Dividend Appreciation ETF

From Nasdaq: 2024-08-27 06:41:00

Heading into fall, investors have an opportunity to add dividend stocks to their portfolios. With falling interest rates expected, dividend stocks could benefit. Vanguard offers low-cost index funds like the Vanguard High Dividend Yield ETF and the Vanguard Dividend Appreciation ETF for exposure to top dividend stocks.

The Vanguard High Dividend Yield ETF focuses on stocks with above-average dividend yields, with top holdings like Broadcom and JPMorgan Chase. The ETF has a dividend yield of 2.8% and an expense ratio of only 0.06%. The Vanguard Dividend Appreciation ETF prioritizes stocks with a history of increasing dividends, including top holdings like Apple and Microsoft.

Investors should choose the right Vanguard dividend ETF based on their risk tolerance and goals. For income-focused investors, the High Dividend Yield ETF may be best. For long-term growth and compounding, the Dividend Appreciation ETF could be the better fit. Both are solid options for dividend exposure.

Consider investing in Vanguard Whitehall Funds – Vanguard High Dividend Yield ETF. The Motley Fool Stock Advisor team identified 10 top stocks for investors to buy now, not including Vanguard Whitehall Funds. Stock Advisor has outperformed the S&P 500 since 2002, providing guidance and monthly stock picks for success.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has no position in mentioned stocks. The Motley Fool endorses Apple, Microsoft, and Vanguard ETFs. It holds positions in Broadcom and Johnson & Johnson, recommending certain options.



Read more at Nasdaq: Here Are 2 Great Vanguard Dividend ETFs: Which Is Right For You?