5 Best Dividend ETFs To Buy

2. Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)

5-year Share Price Performance as of March 15: 65.14%

Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) aims to replicate the performance of the S&P U.S. Dividend Growers Index through passive management using a full-replication approach. The fund primarily invests in large-cap equities, focusing on stocks with a history of increasing dividends annually. The ETF offers an expense ratio of 0.06% and a 30-day SEC yield of 1.73%. As of February 29, 2024, Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)’s portfolio includes 315 stocks and its net assets amount to $91.4 billion. Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) is one of the best dividend ETFs to buy. 

Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)’s top holdings include UnitedHealth Group Incorporated (NYSE:UNH), which is a diversified healthcare company in the United States. On February 23, UnitedHealth declared a $1.88 per share quarterly dividend, in line with previous. The dividend is payable on March 19, to shareholders on record as of March 11. 

According to Insider Monkey’s fourth quarter database, 113 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 104 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 3.4 million shares worth $1.80 billion. 

Wedgewood Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) contributed less to portfolio performance than the majority of our holdings during the quarter. The Company reported double-digit revenue, operating earnings and earnings per share growth during their third quarter. The Company has been able to adjust pricing in its health care segment to keep up with medical cost inflation while working with its Optum units to deliver more value-based care that replaces the traditional fee for service health care model. Value-based care is a sensible, long-term growth opportunity for the Company to pursue and also differentiates it from the vast majority of healthcare providers, particularly as it relates to Medicare patients. For example, the Company’s value-based care programs provide more preventative care opportunities and home-based care visits for patients which helps save the U.S. healthcare system billions in unnecessary spending while also providing patients with better outcomes, as diseases and behaviors are caught or corrected at earlier stages. The Company has invested in several core assets over many years to execute this value-based strategy and it will become the standard of care as the proportion of people in the U.S. with healthcare insurance coverage continues to reach new highs.”