A Growth-Focused Dividend Strategy
Growth leans toward quality.
High-quality companies often have a defensive bent, making them a welcome addition to a diversified portfolio. They tend to exhibit lower volatility than the market and hold up better during drawdowns. Consistent dividend growth is a good proxy for quality because it demonstrates that the business is healthy, stable, and run by a shareholder-friendly management team. Vanguard International Dividend Appreciation ETF (VIGI) looks for these stocks listed on foreign exchanges.
VIGI steers its portfolio toward high-quality firms with strong dividend growth that should offer attractive long-term returns. This low-cost fund earns a Morningstar Analyst Rating of Bronze.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.