Is Vanguard Dividend Appreciation ETF the Smartest Investment You Can Make Today?
When it comes to choosing dividend stock exchange-traded funds (ETFs) for your portfolio, a higher yield isn't always better. In fact, one of my favorite dividend index funds is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG), which has a yield of just 1.9% as of this writing. In contrast, many popular dividend ETFs have yields in the 3% to 4% range in the current market environment.Despite the relatively low yield, it's important to take a closer look at this one, especially if you're still a decade or more away from retirement. While it doesn't emphasize current income as much as some dividend ETFs do, it can be a great combination of growth potential and the likelihood of a much higher income stream in the future.Image source: Getty Images.Continue reading
When it comes to choosing dividend stock exchange-traded funds (ETFs) for your portfolio, a higher yield isn't always better. In fact, one of my favorite dividend index funds is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG), which has a yield of just 1.9% as of this writing. In contrast, many popular dividend ETFs have yields in the 3% to 4% range in the current market environment.
Despite the relatively low yield, it's important to take a closer look at this one, especially if you're still a decade or more away from retirement. While it doesn't emphasize current income as much as some dividend ETFs do, it can be a great combination of growth potential and the likelihood of a much higher income stream in the future.
Image source: Getty Images.
