Vanguard Dividend Appreciation ETF (VIG) remains a Hold as dividend growth has turned positive but remains slow, with a 1.52% yield and lagging performance versus SPY and DGRO. VIG's recent 7.5% quarterly dividend increase overstates improvement; year-to-date growth is just 3.3%, well below historical averages. VIG's low yield and high P/E ratio limit its appeal; I would reconsider at $225–$230 if dividend recovery and earnings estimates improve.
VIG dominates dividend growth portfolios, but Vanguard quietly built an international version that yields more and targets compounders most U.S. investors have never considered owning alongside it.
Two retirees hold identical $500,000 positions in dividend ETFs and collect wildly different paychecks every quarter, not because one made a mistake, but because of a single obscure rule buried in one fund's index methodology.
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