Speaking of dividend growth, VIG has a 13.7% weight to the technology sector, which is high among dividend ETFs. That gives the ETF some leverage to a sector that has been a major source of dividend growth in recent years. Three tech stocks – Microsoft (NasdaqGS: MSFT), IBM (NYSE: IBM) and Qualcomm (NasdaqGS: QCOM) – are found among VIG’s top 10 holdings. However, due to VIG’s dividend increase streak requirement, Apple (NasdaqGS: AAPL) has another eight years to go before it join the fund. [Dividend ETFs Still Lack Tech Exposure]
In a sign that plenty of VIG’s 180 holdings have dividend increase well in excess of 10 years, some of the fund’s marquee holdings, including Dow components Coca-Cola (NYSE: KO), Johnson & Johnson (NYSE: JNJ) and Procter & Gamble (NYSE: PG), are dividend aristocrats. Dividend aristocrats are those S&P 500 members that have increased dividends for at least 25 consecutive years.
VIG also offers wide moat protection. Three of its current members, IBM, Emerson Electric (NYSE: EMR) and Polaris (NYSE: PII), are also holdings in the Market Vectors Wide Moat ETF (NYSEArca: MOAT) and several VIG holdings have previously resided in MOAT.
Vanguard Dividend Appreciation ETF
