3 dividend ETFs to help you sleep well at night

In an era when quality blue-chip stocks like Meta Platforms and PayPal are crashing by more than 20% in a single session, investing in diversified ETFs can help to cushion the pain. In this article, we will look at some of the top dividend ETFs to help you sleep well at night.

Vanguard Dividend Appreciation ETF

The Vanguard Dividend Appreciation ETF (NYSE: VIG) is one of the biggest income ETFs in the US. It has more than $63 billion in assets and a dividend yield of 1.64%. It tracks the S&P dividend growers index that focuses on large-cap companies that are actively growing their payouts. Further, the fund is almost free considering that it has an expense ratio of a paltry 0.06%.


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The VIG is made up of 267 stocks, which has a median market capitalization of about $116 billion. Some of the top names in the fund are Microsoft, UnitedHealth Group, Johnson & Johnson, and Home Depot.

The VIG stock price has climbed by over 85% in the past five years and by more than 225% since inception. It is a good sleep well ETF because of the quality of the companies in the index.

Vanguard High Dividend Yield ETF

The Vanguard High Dividend Yield ETF (NYSE: VYM) is a fund with more than $41 billion and a dividend yield of 2.76%. It tracks the FTSE high dividend yield index, which is made up of companies with a high payout ratio. The companies also have a higher yield than the average. Like most Vanguard ETFs, it has a dividend yield of about 0.06%.

The VYM ETF has more than 412 companies that have a median market cap of about $54.6 billion. Some of the biggest companies in the fund are JP Morgan, PepsiCo, Pfizer, and ExxonMobil.

The VYM stock price has risen by 17% in the past 12 months and by 46% in the past five years. Also, it has jumped by about 177% since its inception in 2007.

iShares Core Dividend Growth ETF

the iShares Core Dividend Growth Fund (NYSE: DGRO) is another large ETF that has more than $22 billion in assets. The fund has a dividend yield of 1.99% and is made up of companies that have a record of growing their payouts. It has a low expense ratio of just 0.08%, making it relatively affordable.

DGRO is a large ETF that is made up of well-known companies like Pfizer, Bank of America, P&G, 3M, and Lockheed Martin. It has risen by about 17% in the past 12 months and 80% in the past 5 years.

Where to buy right now

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Source: https://invezz.com/news/2022/02/11/3-dividend-etfs-to-help-you-sleep-well-at-night/