VIG's Strange Rule: The Highest-Yielding Dividend Growers Aren't Allowed In
By newsfeedback@fool.com (David Dierking)
Read original article on Motley FoolThe Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is the largest dividend exchange-traded fund (ETF) in the world. Its advantage is its simplicity. It targets companies that have raised their annual payouts for at least 10 consecutive years and adds those stocks that qualify under its criteria to its portfolio on a market-cap-weighted basis.
For dividend growth investors, it's a simple yet effective strategy that's returned an average of 10.2% annually since its 2006 inception.
But its stock selection criteria don't end with the payout-hiking streak. The Vanguard Dividend Appreciation ETF's index also ranks eligible companies by indicated annual dividend yield and eliminates the highest-yielding 25% of stocks.
This story was originally published on Motley Fool. DennTech aggregates headlines from top crypto publications to keep traders informed.
Read full article on Motley Fool