Is Vanguard Dividend Appreciation ETF a Buy?

johnN

https://www.yahoo.com/finance/news/vanguard-dividend-appreciation-etf-buy-161700271.html

Is Vanguard Dividend Appreciation ETF a Buy?
Motley Fool
Motley FoolMay 18, 2019, 11:17 AM CDT

Dividend stocks can be a great way to generate excellent total returns in your portfolio over time, and to create a nice income stream after you retire. However, dividend stocks that raise their payout year after year are even better. One exchange-traded fund, or ETF, that allows you to invest in a diverse portfolio of dividend growth stocks without high fees is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG).

Mark

Not for me it isn't. Yield is too low and industrial component is too high. If I had to pick a competitor it would be DGRO, the iShare similar. I do use RDIV mostly because I don't have enough cash to buy their holdings outright.

msf

IMHO the intro evinces a fundamental misunderstanding of dividend appreciation funds as opposed to dividend yield funds. The former is more a strategy of buying into blue chip companies (think growth & income), while the latter is more a strategy of buying into lower growth established companies - the role utilities used to play before deregulation (think equity income).

Dividend appreciation funds are not better, just different. More likely to be classified as blend, as opposed to div yield funds like VYM, which tend to fall into the value camp.

ron

As my preferred dividend with quality holdings I have SCHD.