At a hypothetical 10% annual return, investing $500 each month in Vanguard Dividend Appreciation ETF (VIG) could grow to about $1.13 million in 30 years. Since launching in 2006, the fund has averaged 10.2% annual returns.
Under the same 10% scenario, the balance would be $102,000 after 10 years, $380,000 after 20 and $3.161 million after 40. VIG targets large-cap companies with at least 10 consecutive years of dividend increases and excludes the highest-yielding stocks; its yield was 1.4% at publication.
Technology made up about 26% of the portfolio, with Microsoft, Apple and Broadcom as its top three holdings. Author David Dierking disclosed owning Apple and VIG; The Motley Fool disclosed positions in and recommendations of Apple, Broadcom, Microsoft and VIG.
