VIG ETF

VIG has increased its dividends for eleven years in a row, prioritizing growth over high yields, which appeals to more aggressive equity investors. Its lower yield comes from a significant investment in tech companies that offer smaller dividends, but it still has a solid history of dividend growth. Although it may not be the top choice for high dividends or capital gains, VIG's steady dividend growth and long-term performance make it a trustworthy investment.

When you think about investing in stocks, you likely imagine looking at each company individually, researching them carefully, and then deciding to buy if the investment seems promising. This process is an important step in creating your journey to financial success.

Dividends often have a negative reputation. Many people think they are only for retirees who rely on them for their living expenses.

If you want to make your income investments easier without needing to check them all the time, an exchange-traded fund (ETF) is a great option.

A lot of investors choose dividend stocks as their main way to build wealth. However, this can be an issue if they only pay attention to high yields and ignore the overall returns. It's important to consider both aspects for better investment results.

As major stock market indexes reach record highs, some investors might worry that a decline could be coming in 2025. This concern arises because stock prices have risen faster than earnings growth, making the market seem quite pricey.

The Vanguard Dividend Appreciation Index Fund ETF (VIG) emphasizes quality and growth in dividends rather than just high yields, leading to a diverse portfolio with good returns. It avoids the top 25% of stocks with the highest yields, which helps keep underperforming stocks out of the fund. With a low expense ratio of 0.06%, VIG has also done better than similar funds in total returns this year, making it a strong investment choice.

Are you at a stage in your investing journey where you simply want to set aside some money and earn dividends from it? If so, there's great news for you!

If you're interested in dividend investing, there are great options to invest your money without picking individual stocks. So, which dividend ETFs should you consider for your portfolio?