Vanguard Dividend Appreciation ETF: The ETF For Future Income
A Seeking Alpha Contribution
Summary
- VIG is a low cost fund with a solid history of dividend growth.
- VIG holds financially superior firms that have greater ability to increase dividends.
- VIG outperforms during periods of economic and financial stress.
Dividend investors face a choice when looking for income. One option is to look for higher current income, but this usually comes at the price of lower growth. The other choice is to look for higher growth, with the price of lower income today. For investors looking for growth, Vanguard Dividend Appreciation (NYSEARCA:VIG) is a solid choice.
Index
VIG tracks the Nasdaq US Dividend Achievers Select Index. The index tracks dividend paying companies and uses several criteria to select holdings. The first is that the firm must have paid dividends for 10 consecutive years and that those dividends must have increased each year. The index also uses criteria to screen for higher quality dividend payers… To continue reading, please Click Here
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