An ETF for Rising Dividends

You'll find a load of household names in this Vanguard fund.

Investors are enamored with the strategy of buying stocks with ever-increasing payouts. So it's no surprise that Vanguard Dividend Appreciation ETF has become the largest dividend-oriented exchange-traded fund. As its name suggests, Dividend Appreciation invests in companies with a history of regular distribution boosts. "Most ETFs try to entice investors with the largest dividend yields," says Jim Rowley, an analyst at Vanguard. "With VIG, that’s not the goal. It strives for consistent dividend growth."

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Kaitlin Pitsker
Associate Editor, Kiplinger's Personal Finance
Pitsker joined Kiplinger in the summer of 2012. Previously, she interned at the Post-Standard newspaper in Syracuse, N.Y., and with Chronogram magazine in Kingston, N.Y. She holds a BS in magazine journalism from Syracuse University's S.I. Newhouse School of Public Communications.