Vanguard Dividend Appreciation pulls in stable, profitable firms that have consistently increased their dividends for over a decade. Its established constituents insulate the portfolio from volatility and should lead to a long-term risk-adjusted advantage. Its U.S. and Canadian share classes earn Morningstar Medalist Ratings of Gold.

This strategy tracks the S&P US Dividend Growers Index, which targets U.S. stocks that have increased their dividend payments for at least 10 consecutive years. It eliminates the highest-yielding names from that cohort to ensure its holdings are financially stable and more likely to continue making dividend payments. The index weights its holdings by their free-float-adjusted market cap, which leverages the market’s collective wisdom and helps mitigate turnover and associated trading costs. It also limits individual stocks to 4% of the portfolio at the annual rebalance to promote diversification.

Targeting stocks with 10 years of dividend growth is a strict hurdle that provides a big advantage. It indirectly targets profitable companies that not only have the capacity to increase their dividend payments but also a willingness to do so. Combining yield and quality results in a balanced stable of more than 300 companies. However, if a company were to miss a single dividend payment, it would have to wait 10 years before it is welcomed back. For example, Apple AAPL and ExxonMobil XOM recently joined the portfolio after a decade of increasing dividends. Still, this is a worthwhile trade-off that keeps the portfolio full of high-quality companies that should continue to increase their dividends.

The strategy’s strict requirements tend to weed out recent highflyers like Tesla TSLA and Nvidia NVDA. These omissions can cause diverging performance relative to large-blend peers in the short term, but this strategy should result in smoother and more consistent performance over the long run. Likewise, excluding the highest-yielding eligible stocks reduces the portfolio's exposure to value traps without giving up the fund’s yield advantage over the broad market.

A portfolio of high-quality, stable companies should be tough to beat on a risk-adjusted basis over the long haul. This fund's low expense ratio of 0.06% further carves out a durable edge.

Analyst Rating

A steady approach to higher yield.

Director

Bryan Armour

Microsoft

Apple

Broadcom

JPMorgan Chase & Co

Exxon Mobil

UnitedHealth Group

Visa

Mastercard

Home Depot

Procter & Gamble

These portfolios consist of high-quality, stable companies that should provide strong performance, earning an upgrade to a Process Pillar rating of High from Above Average.

High

Process

Vanguard Equity Index Group boasts seasoned managers and a dedicated supporting staff well-equipped to provide tight index tracking. This well-supported team earns an Above Average People rating.

Gerard O’Reilly and Walter Nejman comanage this strategy. O’Reilly, a Principal at Vanguard, has been with the firm since 1992. Nejman has been with Vanguard since 2008. They both started on the strategy in 2016 to replace longtime manager Ryan Ludt as he transitioned to a different role within the firm.

The managers are responsible for the fund’s trading, providing more portfolio insights than a stand-alone trader. They are supported by a global team of dedicated personnel and sophisticated, scalable technology that optimize precision and reduce managers’ workload. Vanguard frequently rotates its managers to promote breadth and depth across the team. Its independent risk management team works closely with the managers to monitor trades and review any potential issues. Managers’ compensation is tied to performance using a combination of tracking error and excess return metrics, which aligns their interests with investors'.

Above Average

People

As The Vanguard Group settles on new senior leadership, it retains a High Parent rating.

Vanguard announced current CEO Tim Buckley will step down by the end of the year, marking an end to his 33 years at the firm. Historically, Vanguard has pronounced CEO retirements while simultaneously signaling who (from inside the firm) would take over. In this instance, Vanguard’s board said it will evaluate internal and external candidates in the coming months to find its next, and fifth, leader, though it also promoted CIO Greg Davis to president.

Vanguard flourished in several respects under Buckley’s leadership. Assets under management have grown by two thirds over his six years at the helm, while its asset-weighted average US fund fee ratcheted lower to 0.08% at the end of 2023. Vanguard further refined its advice business through its low-cost Digital Advisor platform and more holistic Vanguard Personal Advisor Services, and it debuted promising investment options.

Vanguard has had its share of challenges under Buckley, too. Growing its business outside the US has proved difficult, and ex US investors account for less than 10% of AUM. Between 2019 and 2023, Vanguard’s efforts to build its China business underwent dramatic shifts, with the firm ultimately abandoning plans to launch low-cost index funds there. It also ended a partnership with Ant Financial to provide advisory services to retail investors. Inside the US, customer service issues have continued to be a problem, and some of Vanguard’s newer offers, such as margin loans, seem a departure from a more-conservative approach to investing.

Vanguard retains an investor-friendly culture at its core that’s burnished by a commitment to low costs and supported by its unique mutual ownership structure and direct-to-investor playbook.

Parent

Vanguard Dividend Appreciation ETF

VIG tracks a market-cap-weighted index of US companies that have increased their annual dividends for 10 or more consecutive years.

SPDR S&P Dividend ETF

iShares Broad USD High Yield Corporate Bond ETF

Investors looking for good, reliable income can get the job done right with a collection of only three funds.

These 3 Income ETFs Are a Retiree's Best Friend

Vanguard International Dividend Appreciation ETF

As alluded to in the article title, we live in an uncertain world. In addition to COVID-19, we face the question of inflation, and now the crisis in Ukraine.

2 Vanguard ETFs Offer Global Dividend Growth In An Uncertain World

SPDR S&P Bank ETF

SPDR S&P Regional Banking ETF

Invesco Dynamic Energy Exploration & Production ETF

iShares MSCI USA Quality Factor ETF

Invesco S&P 500 Quality ETF

Invesco S&P 500 Low Volatility ETF

iShares Edge MSCI Min Vol USA ETF

Vanguard Consumer Staples ETF

Vanguard Energy ETF

Consumer Staples Select Sector SPDR Fund

Let's look at some safe ETF strategies that investors can play, keeping in mind certain burning issues that can flare up market uncertainty amid the global health crisis.

ETF Strategies to Conquer Geopolitical & Fed Rate Hike Worries

Vanguard Value ETF

Volatility has taken the front seat this year, making the stock market extremely volatile. This has prompted investors to re-access their portfolio, leading to higher demand for lower-risk securities.

4 ETFs to Invest in on Rising Market Volatility

With a rise in interest rates forthcoming, fixed income investors are flocking to dividend-paying stocks that can add more yield than safer haven government bonds. The inflows into dividend-paying funds have been substantial, particularly within the past month.

Investors Flock to Dividend-Paying Stocks Amid Rising Rates

WisdomTree US Quality Dividend Growth Fund

ProShares S&P 500 Dividend Aristocrats ETF

Invesco Dividend Achievers ETF

Schwab US Dividend Equity ETF

As U.S. stock markets stumble, investors could be turning to steady-paying, quality dividend exchange traded fund strategies. Dividend-paying stocks have taken the lead as market volatility drags on major U.S. benchmarks, especially in the face of the sell-off in the growth style.

Investors Could Find Comfort in Dividend ETFs in Times of Turmoil

With inflation concerns swirling in the minds of fixed income investors, getting an added dose of yield spurred popularity for dividend-focused exchange traded funds (ETFs). 2021 saw an influx of capital into dividend ETFs amid growing inflation worries and the prospect of higher interest rates.

You'll Appreciate This Dividend ETF

As inflation concerns mount, investors are can pick up quality dividend growth-related exchange traded funds. Dividend ETFs have enjoyed significant inflows since inflation concerns gained traction in 2021, with many strategies experiencing returns of more than 20% last year, CNBC reports.

Dividend Growth ETFs in Times of Inflation

iShares Core Dividend Growth ETF

As dividend-focused investments gain popularity, it's important to note the difference between growth and yield, ProShares' Simeon Hyman says.

Dividend ETFs are getting more attention. Here's a key distinction to understand when investing

SPDR S&P Midcap 400 ETF Trust

Let's look at a few safe ETF plays that investors can consider keeping in mind the rising concerns emanating from the high inflation levels and maximum chances of a Fed rate hike.

5 Safe ETF Bets to Tackle Current Market Gyrations

AGFiQ U.S. Market Neutral Anti-Beta Fund

SPDR Gold Trust

iShares 20+ Year Treasury Bond ETF

Given the myriad of woes, investors should stash their cash in ETFs of some safe investing zones.

5 ETF Buying Zones Amid Huge Volatility

iShares Select Dividend ETF

Defensive ETF Strategies to Tackle Wall Street's Dull Start to 2022

Let's look at some safe ETF plays that investors can consider keeping in mind the rising concerns emanating from the high inflation levels and high chances of a Fed rate hike.

5 Defensive ETF Bets for Dealing With Fed Rate Hike Woes

VIG is a diversified dividend growth index ETF. The fund is perfect for long-term dividend growth investors.

VIG: Strong, Diversified Dividend Growth Index ETF

iShares Core S&P Small Cap ETF

Materials Select Sector SPDR Fund

We have highlighted some ETFs from different zones that are poised to outperform in 2022 given the current trends.

5 Top-Ranked ETFs to Add to Your Portfolio for 2022

iShares Core High Dividend ETF

SPDR Portfolio S&P 500 High Dividend ETF

Even within the same dividend style, ETF returns can be quite different.

Dividend Growth Returned In 2021

Vanguard Consumer Discretionary ETF

Vanguard FTSE Developed Markets ETF

Vanguard Financials ETF

Vanguard Telecommunication Services ETF

Vanguard Russell 1000 Growth ETF

Vanguard ETFs are renowned for their high intraday liquidity, low transaction costs, and expense ratios, and these seven picks stand out. The post The 7 Best Vanguard ETFs for 2022 appeared first on InvestorPlace.

The 7 Best Vanguard ETFs for 2022

AbbVie

ARK Innovation ETF

Brunswick

Celanese

Crane Holdings Co

CVS Health

Evercore

Fortune Brands Home & Security

Huntington Bancshares

Kroger

Lowe's

Altria

Realty Income Corp

First Trust SMID Cap Rising Dividend Achievers ETF

Sherwin-Williams

Snap-on

AT&T

Universal Forest Products

Vanguard High Dividend Yield ETF

Whirlpool

Worthington Industries

Williams-Sonoma

We start out with a short list of guidelines that make it easier to identify dividend stocks that are still worth investing in right now.

The Best Dividend Stocks For January 2022

Accenture Plc

Applied Materials

Bank of New York Mellon

BlackRock

Comcast

Costco

Ecolab

Expeditors International of Washington

General Dynamics

Hershey

Lockheed Martin

McCormick

Northrop Grumman

Roper Technologies

Charles Schwab

T. Rowe Price Group

U.S. Bancorp

West Pharmaceutical Services

There are 23 stocks on my dividend growth watchlist for January 2022. Six of the stocks on my watchlist are currently undervalued based on dividend yield theory.

Dividend Growth Stock Watchlist - January 2022

Cintas

There are 24 stocks on my dividend growth watchlist for December 2021. Nine of the stocks on my watchlist are currently undervalued based on dividend yield theory.

Dividend Growth Stock Watchlist - December 2021

Let's look at some safe ETF plays that investors can consider keeping in mind the rising concerns emanating from the new omicron variant.

5 Defensive ETF Bets as Omicron Enters the United States

First Trust Rising Dividend Achievers ETF

Vanguard International High Dividend Yield ETF

In 2020, ETFs saw a record $504 billion in flows. According to CFRA Research's Todd Rosenbluth, 2021 is set to blow that record out of the water.

Dividend ETFs Have Brought in Nearly $40 Billion This Year

Global X Cloud Computing ETF

Global X Telemedicine & Digital Health ETF

Amplify Online Retail ETF

First Trust Cloud Computing ETF

Vanguard Health Care ETF

Direxion Work From Home ETF

Health Care Select Sector SPDR Fund

SPDR S&P Retail ETF

Considering the complexities of the current market scenario, let's take a look at some ETF areas that can make good investment choices.

ETF Areas Making Good Bets Amid Rising Omicron Threats

VIG is a widely diversified, dividend growth-oriented ETF focused on large-cap equities. The fund targets firms with histories of strong dividend growth.

Vanguard Dividend Appreciation ETF: A Different Approach To Dividends

Dividend aristocrats are likely to perform well and are attractive investment options for an impressive finish to 2021.

Take Shelter in Dividend Aristocrat ETFs as COVID-19 Cases Rise

News for Vanguard Dividend Appreciation ETF ETF (VIG)