“Over time, I would expect DVY to sport a higher current yield, though I would expect HDV to offer better potential for capital gains. In the short-to-medium term, the decision of one over the other is essentially a matter of sector preference,” Sizemore wrote.
Finally, for longer-term capital gains, his preference is for VIG, the Vanguard dividend ETF. [Appraising the Largest Dividend ETF]
“Though it currently yields no more than the broader S&P 500, the ETF is comprised of companies that have raised their dividends every year for the past 10 years,” Sizemore said.
“And while there is no guarantee that they will continue to raise their dividends going forward, the 10-year criteria ensures that you own a portfolio of some of the highest-quality growth companies in the world,” he added. “The dividend criteria is also more objective than Morningstar’s moat rating, which depends on the judgment of Morningstar’s analysts.” [Special Report: Surveying the Dividend ETF Landscape]
Vanguard Dividend Appreciation
