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VIG: Why Not Consider This Dividend Growth ETF?

Published Fri, 10 May 2019 12:51:50 -0400 on Seeking Alpha

This has been a phenomenal year for US stocks. Although it appears that the good times could continue to roll in the future, particularly as the labor market remains strong and the economy expands at a robust pace, it wasn't long ago when the US stocks were on the brink of a bear market. I believe astute investors should also be prepared for a stock market sell-off or an increase in volatility, particularly since Wall Street is still facing some headwinds.
In this backdrop, I believe investors should consider the Vanguard Dividend Appreciation ETF (VIG). This ETF doesn't offer much in terms of dividend yield, but it makes up for it with a high-quality portfolio, which includes numerous blue-chip companies that have a solid track record of rewarding investors by growing dividends year in and year out, even during turbulent times.

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The major US indices are currently hovering near record-highs following a strong earnings season and a solid GDP report, which has reduced recession-related concerns. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have posted year-to-date gains of 13%, 17%, and 22%, respectively. Meanwhile, the Cboe Volatility Index (VIX), which measures options activity of the S&P 500 companies and is often referred to as Wall Street's fear gauge, has fallen by 36% this year. But, earlier this week, the VIX spiked again after a tweet from President Donald Trump raised fresh fears about a trade war between... Read more