Vanguard's Most Popular Dividend ETF

I'm planning to take a look at many of the most popular exchange-traded funds in the market today. ETFs have skyrocketed in popularity, but it's important to understand exactly what you're getting when you buy an ETF. Today, I'd like to focus on the Vanguard Dividend Appreciation ETF (NYSE: VIG ) , an ETF that has capitalized on the big trend toward dividend-paying stocks.

Vanguard Dividend Appreciation tracks an index of what it calls "dividend achievers" -- U.S. companies that have boosted their dividend payments for at least 10 consecutive years. With more than 130 stocks in its portfolio, the ETF gives you plenty of diversification. You'll find reliable consumer stocks Coca-Cola (NYSE: KO ) and PepsiCo (NYSE: PEP ) among the top echelon of the fund's holdings, as their stable business models have allowed them to raise their payouts for decades.

Source: Motley Fool

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