From Nasdaq: 2024-11-02 08:10:00

Many investors overlook dividend stocks, but data shows they outperform non-payers. The Vanguard Dividend Appreciation ETF (VIG) focuses on dividend growth, delivering double-digit returns. Dividend growers have historically outperformed, making VIG a smart investment. The ETF excludes high-yielders, focusing on companies likely to continue growing dividends.

VIG tracks the S&P U.S. Dividend Growers Index, emphasizing consistent dividend growth. Companies that increase dividends consistently have shown higher returns. Dividend growers have outperformed non-growers and cutters, making them an attractive investment option. VIG excludes high-yielders, focusing on companies with room to increase dividends.

The Vanguard Dividend Appreciation ETF holds 338 stocks with a history of dividend growth. The fund has delivered strong returns over various time frames, offering a dividend yield slightly higher than the S&P 500. VIG’s focus on dividend growth has paid off for investors, making it a compelling choice for wealth-building through total returns.

Top holdings of the Vanguard Dividend Appreciation ETF include Apple and Visa, both with strong track records of dividend growth. Apple’s robust financials and growing profits support continued dividend growth. Visa’s double-digit revenue and earnings growth position it well for future payout increases. VIG’s concentration on top dividend-growth stocks enhances its potential for attractive returns.

Investing in dividend stocks, like the Vanguard Dividend Appreciation ETF, can be a solid strategy for wealth-building. The fund’s focus on consistent dividend growth aligns with historical outperformance of dividend growers. VIG’s track record of delivering strong total returns makes it an appealing option for investors seeking long-term growth through dividends.



Read more at Nasdaq: 1 Great Reason to Buy the Vanguard Dividend Appreciation ETF (Hint: It’s Not for the Income)