3 Consistent Dividend Appreciation ETFs Investors Are Largely Ignoring, But They Shouldn’t

6 days ago 13

Chris MacDonald

Sun, December 14, 2025 astatine 1:25 PM CST 4 min read

A manus from a smartphone transfers wealth and dollars alert out. Online currency transactions, mobile payments utilizing a smartphone. Concept Financial growth, passive income, online business, dividends

Dividend appreciation is 1 of the cardinal factors that separates equities from galore fixed income products retired there. Sure, determination are immoderate products that wage retired expanding amounts implicit clip (such arsenic annuities and different structured products). But for investors holding much accepted portfolios consisting of a premix of stocks and bonds, the enslaved information of one's portfolio is typically fixed oregon fluctuates alongside involvement complaint movements implicit time.

VIG holds lone 300 stocks with a decennary of consecutive yearly dividend increases and charges 0.05%.
DGRO requires 5 years of dividend maturation alternatively of 10 and yields 2% versus VIG’s 1.6%.
VIGI offers planetary dividend growers astatine little valuations than U.S. stocks with a 1.9% yield.
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In contrast, investing successful dividend-paying stocks with a way grounds of raising their dividend distributions implicit clip tin supply passive income streams with ostentation protection. That's to accidental thing of the superior superior appreciation upside equities supply implicit fixed income (though, determination tin beryllium a constituent astatine play for enslaved funds arsenic well).

With that successful mind, for investors looking for meaningful dividend appreciation implicit time, present are 3 apical speech traded funds (ETFs) I deliberation shouldn't beryllium ignored close now.

Vanguard happens to beryllium 1 of my apical ETF providers I look to for options successful immoderate theme. For those looking for dividend appreciation, the aptly-named Vanguard Dividend Appreciation ETF (VIG) is wherever my caput instantly goes first.

This money screens retired the immense bulk of apical stocks successful the market, lone holding astir 300 stocks which are heavy tilted to prime large-caps. Providing vulnerability to a scope of sectors including user antiaircraft stocks, industrials and healthcare names (among others), VIG is an ETF aimed astatine investors looking for accordant dividend maturation implicit time.

That's due to the fact that the holdings wrong this money person to conscionable a cardinal criterium - having raised their dividends for much than a decennary consecutive (on an yearly basis). These are companies that typically travel with durable competitory advantages and pricing power, capable to gain outsized currency travel maturation implicit clip that's yet passed onto investors successful the signifier of higher dividends.

With an disbursal ratio of 0.05% (about arsenic debased arsenic it gets), this is simply a apical dividend appreciation ETF I deliberation astir semipermanent investors tin slumber good astatine nighttime owning.