Vanguard Dividend Appreciation Index Fund ETF Shares [VIG] Stock Forecast

The SPDR S&P 500 ETF was up 9.13% in November, Vanguard's Dividend Appreciation ETF was up 7.47%, my watchlist beat both with a return of 10.24%. The top 15 dividend growth stocks for December offer an average dividend yield of 1.99% and appear to be about 34% undervalued based on dividend yield theory. Since inception, September 2020, the watchlist is rocking a cool 11.76% annualized return, beating VIG by 2.36% and SPY by 1.52%.

Index funds make life easy for investors by spreading capital across a group of stocks. The Vanguard High Dividend Yield ETF returned 134% over the last decade.

Schwab's flagship U.S. Dividend Equity ETF is an efficient and straightforward option. Vanguard's Dividend Appreciation ETF is more suitable for income investors who still want growth.

Dividend stocks, in general, and dividend aristocrats, in particular, have historically outperformed the market with lower volatility. The dominance of big tech in 2023 after over a decade of aristocrats lagging the S&P has caused some to ask, "Is dividend investing broken?". Actually, as NOBl and VIG, two popular aristocrat ETFs, show, the returns over the last decade are not surprising given what each ETF owns.

The Vanguard Dividend Appreciation ETF has performed closely in line with the S&P500 since its inception in 2006, but should outperform in the future. VIG has cheaper valuations, is much more diversified, and has a history of lower volatility when compared with the S&P500. However, 10-year returns are likely to lag behind cash and bonds amid slowing nominal GDP growth downside mean reversion in valuations.

The fund dividend growth strategy does not outperform the S&P 500 or peers. VIG excludes REITs and the top 25% highest dividend stocks. Consensus estimates suggest a 9% total return potential for VIG.

Vanguard is known for its low-cost ETFs and continues to offer innovative ways to grow wealth.  Diversified ETFs from Vanguard offer a simple strategy for investors seeking to attain millionaire status.

In response to macroeconomic challenges, numerous companies are reducing expenses to safeguard their earnings, which can sometimes involve reducing or eliminating dividends. This article highlights three dividend stocks whose weak Dividend Safety Grades were highlighted well before cuts that could have been avoided. Economic oscillation, declining earnings, inflation, and rising interest rates have pressured profits and companies' ability to maintain dividends.

There are lots of opportunities for income investors right now. Treasuries and bonds are attracting a lot of capital, but they are riskier than you may think. Dividend-paying stocks and ETFs offer better risk-to-reward for most income investors. Here's why.

Vanguard Dividend Appreciation ETF is a good option for new investors or those seeking safety and stability in a high-quality ETF. VIG has a blended portfolio structure that includes both value and growth holdings, with a focus on dividend growth. While VIG performs well in terms of total return and price appreciation, it may be outperformed by some peers in terms of total return and starting dividend yield.

Vanguard Dividend Appreciation Index Fund ETF Shares is a US stock and trading under the symbol VIG

Vanguard Dividend Appreciation Index Fund ETF Shares stock price is $165.45 today.

Yes, Vanguard Dividend Appreciation Index Fund ETF Shares is a publicly traded company.