Vanguard Dividend Appreciation ETF

VIG

Market cap $103B

I'm mostly a tech investor, but I like to keep some dividend holdings as well.

The Index tracked by the Vanguard Dividend Appreciation ETF reconstituted last month, resulting in just over 5% portfolio turnover mainly by simply trimming top-performing names like Broadcom. VIG's excellent dividend features were reinforced. Using Seeking Alpha Dividend Grades, I'll demonstrate just how good VIG is from a dividend growth, safety, and consistency perspective. Its estimated 1.71% yield is a drawback, but VIG's components have low payout ratios, high earnings growth rates, and the quality necessary to keep up its 12-year dividend growth streak.

Vanguard Dividend Appreciation Index Fund ETF remains a Buy for core portfolios, especially in pressured or rangebound markets. VIG's structural filters favor value and defensive compounding over high-beta growth, with limited tech and Mag7 exposure beyond Apple and Microsoft. VIG's lack of breadth and exclusion of reinvestment-heavy tech is now an advantage, as high-duration, narrative-driven sectors face valuation pressure.

If I were retired today and had to put all my money into a single fund, I'd probably pick the Vanguard Wellesley Income Fund Investor Shares (VWINX).

Dividend ETFs are back in focus, as investors look for stability and income amid persistent market volatility.

The Undercovered Dozen series spotlights 12 lesser-covered stocks from the past week on Seeking Alpha. This week's edition covers articles published between March 20 and March 26, offering fresh investment ideas. The focus is on stocks that may offer unique opportunities due to limited analyst coverage.

Dividend stocks and ETFs provide a safety net for investors. When the dominoes start falling, investors go risk-off and move to lower-risk assets, such as dividend stocks and ETFs. If you don't know already, we issue and discuss our Top 5 Foundation Dividend Stocks often. The 5 foundation stocks are Dividend Aristocrats, with over 25 years of consistently growing dividends, and many of them are Dividend Kings, which represents 50+ years of consistent dividend increases.

The Vanguard Short-Term Inflation-Protected Securities ETF is one of the safest havens during turbulent periods. The Vanguard Consumer Staples ETF has outperformed the overall market historically during significant downturns.

The Schwab U.S. Dividend Equity ETF holds 100 high-yielding dividend growth stocks. The iShares Core Dividend Growth ETF holds stocks that have increased their dividend for at least five straight years.

The Vanguard Dividend Appreciation ETF has rewarded long-term investors. It has delivered admirable performance, beating out a key benchmark.