Dividend-paying stocks can offer reliable cash flows, making them attractive to investors. The Hartford Funds noted that 85% of the S&P 500’s returns since 1960 were from reinvested dividends. The Vanguard Dividend Appreciation ETF (VIG) is a solid option with a low expense ratio of 0.05% and average annual gains of 16.01% over 3 years, 12.69% over 5 years, and 13.24% over 10 years. The ETF, which tracks the S&P US Dividend Growers Index, includes top holdings like Microsoft, JPMorgan Chase, and Apple, offering dividend growth potential. Consider other dividend-focused ETFs like SCHD for a balanced approach.

The Vanguard Dividend Appreciation ETF has seen impressive dividend growth, with payouts more than tripling over 12 years. While some holdings may have low yields, they represent fast-growing companies reinvesting in growth. Broadcom, for example, has a 10-year average annual dividend growth rate of over 30%. Investors seeking dividend income that should grow may find VIG appealing, especially for long-term growth. While trying to time the market is challenging, investing incrementally over time could be a prudent strategy. Considering the dividend growth potential and top holdings can help investors decide if VIG is the right choice for their portfolios.

Read more at Yahoo Finance: Is the Vanguard Dividend Appreciation ETF (VIG) a Buy Now?