Latest news with #NedDavisResearch
CNBC
a day ago
- Business
- CNBC
The growth trade is back in vogue for now, Ned Davis Research says
Investors should favor growth stocks over value stocks as normalcy returns to the market, according to Ned Davis Research. The Cboe Volatility Index (VIX) traded at around 17 on Thursday, far below the April 7 peak of 60.13. Heightened trade tensions sent the VIX surging in early April and the S & P 500 tumbling, with investors worried that higher tariffs would tip the economy into a recession. Since then, stocks have recovered sharply as President Donald Trump paused many of the levies unveiled on April 2. The S & P 500 is about 3% below its all-time high set in February. .SPX YTD mountain SPX in 2025 With these changes, Ned Davis thinks growth stocks — which trade on the expectation of strong earnings expansion over several years — should hold a more prominent spot in investor portfolios. "We are moving 5% from bonds to stocks in our U.S. asset allocation recommendation, bringing the weights to 60% stocks (5% overweight), 30% bonds (5% underweight), and 10% cash (marketweight). We are also shifting our style recommendation from neutral to favoring Growth over Value," Ed Clissold, the Ned Davis chief U.S. strategist, wrote in a note Wednesday. "At the beginning of the year, Mag 7 stocks, which tend to be classified as Growth, were facing slower earnings growth and high valuations. The correction removed Mag 7's relative overvaluation," he added. Most "Magnificent Seven" stocks were under pressure at the height of the tariff scare. Since then, most have staged strong rebounds. Take a look at the group's performance since April 2. Nvidia : +29% Meta Platforms : +18% Amazon : +6% Alphabet : +7% Apple : +9% Tesla : +17% Microsoft : +21% Still, Clissold warned: "One Truth Social post could change how investors feel [toward] risk-on and riskoff assets. The NDR Daily Trading Sentiment Composite, which is in the U.S. [Asset Allocation] Model, is neutral but close to its excessive optimism zone. The implication is that the market is more susceptible to the next piece of negative news."
Yahoo
2 days ago
- Business
- Yahoo
Why America's aging population will be a problem for stocks — and your retirement
One reliable indicator of investor behavior suggests that stock valuations in developed markets will peak in the next decade or so and then begin a long-term decline. The measurement for this prediction is demographics — in this case, the aging population of America and other developed markets. My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money What on Earth is going on with the American consumer? My father-in-law has dementia and is moving in with us. Can we invoice him for a caregiver? 20 stocks primed for rapid growth while trading at half of Nvidia's valuation Strategists forecast a sizzling summer for small-cap stocks Long-term demographic trends are of little concern if you are a short-term-focused investor. But demography becomes quite important if you're a decade or more from retirement and trying to devise an appropriate financial planning strategy for your nonworking years. Researchers have found that the ratio of a country's middle-aged population to its elderly is highly correlated with the long-term cycles of its stock market. This ratio — known among demographers as the 'M/O ratio' or 'middle-old ratio' — is plotted in the chart below. It is calculated by dividing the number of those 40-49 by the number of those 60-69. (The M/O ratio data in the chart are from Alejandra Grindal, chief economist at Ned Davis Research.) There is a distinct connection between the long-term trend shifts in the M/O ratio and the S&P 500 SPX. For example, the ratio hit a peak in 2000, coinciding with the end of the go-go years of the 1990s and the top of the internet bubble. The ratio then declined for more than a decade — a period coinciding with the global financial crisis and the 2008-09 bear market. The ratio has been in an uptrend since the mid-2010s. The correlation is not perfect. The M/O ratio didn't hit bottom until several years after the financial crisis, for example, by which point the stock market had already embarked on a new bull market. Furthermore, the ratio is of no help in predicting shorter-term bear markets, such as the one in 2022. Nevertheless, the M/O ratio's correlation with longer-term cycles is impressive, according to John Geanakoplos, an economics professor at Yale University and co-author of perhaps the topic's seminal academic paper, published in 2002. He found evidence that demography provides 'a single explanation' for the alternating 20-year periods of boom and bust since World War II. Notice that the focus of Geanakoplos' research is on the relative sizes of different population cohorts rather than the size of a country's entire population. That's important because many on Wall Street focus on overall population when making doomsday predictions about the future of the world. The chart also shows the path the M/O ratio will take through 2050, rising until the mid-2030s (though never getting to the level it did at the top of the internet bubble) and then declining through 2050. When interpreting this, Geanakoplos says it's important to focus on both the ratio's trend as well as its absolute level. He said in an email that the data suggest 'the demography effect [will be] slightly smaller going forward, but [with] stock market growth slowing in the early [20]30s.' You should plan accordingly in your retirement portfolio. Since the demographic projections aren't precise, this analysis suggests that over the coming decade, you would want to start reducing your equity exposure level to even lower levels than is suggested by the traditional glide path employed by target-date funds and financial planners. By the time you reach 65, for example, the glide path employed by Vanguard's target-date funds suggests that you should dedicate 30% of your retirement portfolio to U.S. equities. The dictates of demography would have you even less exposed to stocks at that time. The Vanguard glide path also calls for a 65-year-old investor to allocate an additional 20% to non-U.S. equities. Whether you maintain that allocation depends on the country and region of the world. The average non-U.S. country is also projected to have a lower M/O ratio in 25 years, according to the World Bank, though the decline between now and 2050 will be less than in the U.S. Many emerging market countries in Africa and Asia will have higher M/O ratios in 25 years, according to the World Bank's projections. So if you follow the demographic projections, you would want to shift some funds from U.S. equities and overweight emerging markets. Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at More: Americans are 'revenge saving' after years of splurging: 'Savings are a great way to have some certainty' Also read: What is a '996' work culture, and why are young professionals in China giving it the cold shoulder? 'You never know what might happen': How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? 'I am getting very frustrated': My mother's adviser has not returned my calls. He manages $1 million. Is this normal? My life partner is 18 years my senior. He wants to leave his $4.5 million fortune to me — not his two kids. Do we tell them? 'I'm afraid to ask her': My stepmother won't show me my father's will. What now? Jamie Dimon's bond-market warnings put investors on alert to diversify outside U.S. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
3 Safe Ultra-High-Yield Dividend Stocks -- Sporting an Average Yield of 11.35% -- That Make for No-Brainer Buys in June
There are a lot of strategies investors can employ on Wall Street to grow their wealth. With thousands of publicly traded companies and more than 3,000 exchange-traded funds (ETFs) to choose from, there's bound to be one or more securities that can help you meet your investment goals. But among these countless strategies, buying and holding high-quality dividend stocks delivers some of the most robust returns over long periods. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Companies that pay a regular dividend to their shareholders are often profitable on a recurring basis, capable of providing transparent long-term growth outlooks, and have, in many instances, demonstrated their ability to navigate an economic downturn. This time-tested aspect of dividend stocks helps to lure income seekers. However, the most intriguing characteristic of dividend stocks is their long-term outperformance. In The Power of Dividends: Past, Present, and Future, the researchers at Hartford Funds, in collaboration with Ned Davis Research, compared the annualized return of dividend stocks to non-payers over a 51-year period (1973-2024). Not only did the dividend stocks more than double up the annualized return of non-payers (9.2% vs. 4.31%), but they did so while being considerably less volatile. The challenge for income seekers is balancing yield and risk. The higher the yield, the higher probability of things being too good to be true. Since yield is a function of payout relative to share price, a struggling business with a plunging share price can trap investors with a high but unsustainable yield. The good news is that safe ultra-high-yield dividend stocks, with yields that are at least four times higher than the average yield of the benchmark S&P 500 (1.31%, as of May 30), do exist, and can make investors richer over time. What follows are three ultra-high-yield dividend stocks, sporting an average yield of 11.35%, which make for no-brainer buys in June. Annaly Capital Management: 14.78% yield The first supercharged income stock that makes for a compelling buy in June comes from an industry that Wall Street analysts have almost universally disliked since this decade began: mortgage real estate investment trusts (REITs). I'm talking about Wall Street's leading mortgage REIT, Annaly Capital Management (NYSE: NLY). Recently, Annaly's board increased its quarterly distribution to $0.70 per share, which marks the first time since 2011 that the company has increased its dividend. While a nearly 15% yield might sound unsustainable, Annaly has averaged a roughly 10% annual yield over the last two decades. The reason Wall Street has generally avoided mortgage REITs is because they're highly sensitive to changes in interest rates. Companies like Annaly typically don't perform well when the Federal Reserve is rapidly increasing interest rates, as well as when the Treasury yield curve is inverted. This results in higher short-term borrowing costs for Annaly and its peers and reduces net interest margin. But when things seem their bleakest for mortgage REITs is when it's often the best time to buy. The steep yield-curve inversion that had worked against Annaly and its peers is no longer inverted (albeit by a small amount). Additionally, the nation's central bank is in the midst of a well-telegraphed rate-easing cycle. A falling rate environment has historically been when mortgage REITs thrive. Short-term borrowing costs begin to fall, but still allow companies like Annaly to increase the average yield on the mortgage-backed securities they're buying and holding. Best of all, $75 billion of Annaly Capital Management's $84.9 billion asset portfolio is in highly liquid agency securities. An "agency" asset is backed by the federal government in the unlikely event of default. This added protection affords Annaly the ability to lever its investments to maximize its profits and dividend. With Annaly trading ever-so-slightly below its book value -- mortgage REITs often trade close to their respective book value -- and industry variables now working in its favor, the time to buy this income colossus has arrived. Pfizer: 7.32% yield A second ultra-high-yield dividend stock that makes for a no-brainer buy in June is none other than pharmaceutical giant Pfizer (NYSE: PFE), which is yielding north of 7.3% for its shareholders. The weakness in Pfizer's stock over the last three years can best be described as the company being a victim of its own success. During the COVID-19 pandemic, Pfizer's vaccine (Comirnaty) and oral therapy (Paxlovid) generated more than $56 billion in combined sales in 2022. Last year, sales shrank to about $11 billion on a combined basis and will likely fall further in 2025 on weaker Paxlovid sales. Though Pfizer has lost tens of billions in COVID-19 therapy sales, perspective also shows that Comirnaty and Paxlovid are generating north of $1 billion in combined quarterly sales when no sales existed at the end of 2020 from this area of focus. Pfizer's revenue, including acquisitions, has grown by more than 50% over the last four years. In short, it's a stronger and more diverse company today than it was at the end of 2020 -- but it's not being treated like one due to recent sales weakness in its COVID-19 therapies. One of the many reasons Pfizer can thrive moving forward is the December 2023 acquisition of cancer-drug developer Seagen for $43 billion. Aside from recognizing billions of dollars in immediate revenue, Seagen vastly expands Pfizer's oncology pipeline, which can benefit from strong pricing power and patients gaining earlier access to cancer-screening tools. Furthermore, cost synergies directly tied to this buyout, coupled with Pfizer's ongoing cost realignment program, should result in approximately $4.5 billion in net-cost savings by the end of this year. Reduced costs should be a positive for the company's margins. Investors should also consider that healthcare is an incredibly defensive sector. Regardless of how well or poorly the U.S. economy and stock market perform, people will continue to need prescription medicines. Though Pfizer isn't going to knock anyone's socks off with its growth rate, its cash flow tends to be highly predictable. Pfizer stock is trading at less than 8 times forecast earnings per share for 2025, which makes this an ideal time for opportunistic income seekers to pounce. PennantPark Floating Rate Capital: 11.94% yield The third high-octane dividend stock income investors can purchase with confidence in June is small-cap business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Unlike Annaly Capital Management and Pfizer, PennantPark pays its dividend on a monthly basis and is currently yielding close to 12%. A BDC is a type of business that invests in middle-market companies -- i.e., unproven small- and micro-cap companies. At the end of March, PennantPark held almost $240 million in various preferred and common stock in middle market companies, along with $2.1 billion in first lien secured debt. This makes it a predominantly debt-focused BDC. Focusing on debt offers a huge advantage when dealing with middle-market companies. Since these businesses often lack access to basic financial services, PennantPark can typically net a higher yield on its loans. As of March 31, its weighted average yield on debt investments was a scorching-hot 10.5%, which is more than double the yield you'll find on U.S. Treasury bonds. But the company's biggest advantage might just be that approximately 100% of its debt investments sport variable rates. When the Fed aggressively fought back against rapidly rising inflation in 2022 and 2023, it sent PennantPark's weighted average yield on debt investments notably higher. Even with the nation's central bank in a rate-easing cycle, rate cuts are being addressed slowly. This is allowing PennantPark to continue to facilitate high-interest loans. Something else to note about PennantPark Floating Rate Capital is that delinquencies are minimal. Despite dealing with unproven businesses, only four companies, representing 2.2% of its portfolio on a cost basis, are currently delinquent. This is a testament to the vetting process by PennantPark's team. Further, management has done an excellent job of protecting the company's invested principal. Including its preferred and common stock holdings, PennantPark has an average investment of $14.7 million spread across 159 companies. No single investment is large enough to compromise profitability or rock the boat. To build on this point, all but $4.4 million of its $2.1 billion in debt investments is first-lien secured debt. First-lien secured debtholders find themselves at the front of the line for repayment in the event that a borrower seeks bankruptcy protection. Similar to Annaly, PennantPark Floating Rate Capital tends to trade very close to its book value. With shares currently trading at a 7% discount to book, opportunistic investors can nab a fantastic company at a bargain price. Should you invest $1,000 in Annaly Capital Management right now? Before you buy stock in Annaly Capital Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Annaly Capital Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Yahoo
4 days ago
- Business
- Yahoo
Got $100 to Invest? 1 Top Dividend Stock Yielding Over 4% You Can Buy Without Hesitation in June.
Brookfield Infrastructure offers a more than 4% dividend yield. The company backs that payout with stable cash flow and a rock-solid financial profile. The company expects to grow its dividend by 5% to 9% per year. 10 stocks we like better than Brookfield Infrastructure › Buying dividend stocks can be a great way to grow your wealth. They can be powerful wealth creators over the long term. For example, data from Ned Davis Research and Hartford Funds shows that a hypothetical investor who put $100 into companies that pay a growing dividend would have seen that investment grow to over $15,000 in 50 years. That's a 10.2% annualized return. That compares with only about $900 by investing the same amount in non-dividend-payers, for a 4.3% annualized return. If you've got $100 to invest this June, Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) is one top dividend stock you shouldn't hesitate to buy. The global infrastructure operator offers an attractive dividend, with more than a 4% yield, and has a terrific record of growing its payout. Brookfield Infrastructure has a business built to pay a growing dividend. The global infrastructure company operates a diversified portfolio of high-quality utilities, transport, midstream, and data assets that generate stable cash flows backed mainly by long-term contracts and government-regulated rate structures -- and by "mainly," I mean 85% of its funds from operations (FFO). Those frameworks also either index its rates to inflation, totaling 70%, or protect it from the impact of inflation, totaling 15%. That means its business generates steadily rising cash flow. Brookfield targets to pay out 60% to 70% of its stable cash flow in dividends. That gives it a nice cushion while allowing the company to retain meaningful excess free cash flow to reinvest in growing its business. Brookfield also has a strong investment-grade balance sheet with lots of liquidity. The company maintains its financial flexibility by recycling capital to fund additional growth -- that is, selling mature assets to fund higher-returning new investments. The company's strategy of acquiring high-quality infrastructure assets on a value basis, enhancing them through operations-oriented management, and then recycling mature assets into new investments has paid big dividends for investors over the years. Brookfield has grown its FFO per share at a 14% compound annual rate since its inception in 2009. That has helped fuel 9% compound annual dividend growth. Brookfield has increased its payout every year over that 16-year period. That has helped drive a 13.5% annualized total return for Brookfield investors. Brookfield's inflation-linked contracts provide it with a solid growth baseline. The company estimates these agreements will add 3% to 4% to its FFO per share annually. On top of that, it expects economic growth to add another 1% to 2% to its FFO per share each year by driving volume growth across its infrastructure assets. The company also invests its retained cash flows into expansion projects across its existing infrastructure platforms and new ones. It currently has a record backlog of nearly $8 billion in capital projects under construction that it expects to complete over the next two years. Most of these projects, totaling almost $5.9 billion, are in its data segment, which includes data center developments and two U.S. semiconductor fabrication facilities. Brookfield estimates these projects will add another 2% to 3% to its FFO per share each year. Add up those three drivers, and Brookfield expects to organically grow its FFO per share by 6% to 9% per year. That supports its plan to increase its dividend by 5% to 9% annually. On top of that, the company sees additional growth potential by continuing to execute its capital recycling strategy to make accretive acquisitions. Brookfield believes this plan can boost its FFO per share growth rate above 10% annually over the long term. The company has been actively executing its strategy this year. It closed the sale of five assets, generating $1.4 billion in proceeds, and has more under way. Meanwhile, the company is already starting to put that capital to work. It agreed to invest $500 million in equity in the acquisition of a leading U.S. refined products pipeline system. Brookfield also formed a 70-30 joint venture with GATX to acquire Wells Fargo's rail operating lease portfolio, totaling 105,000 railcars, for $4.4 billion. As part of the deal, GATX has options to acquire Brookfield's interest over the next 10 years. The company will also directly acquire Wells Fargo's rail finance lease portfolio, totaling 23,000 railcars and 440 locomotives, which GATX will manage on its behalf. These deals will help enhance its FFO per share growth rate, giving Brookfield more fuel to grow its high-yielding dividend. Brookfield Infrastructure built its business to pay an attractive and growing dividend. The company expects to increase its over 4%-yielding payout by 5% to 9% annually, supported by its plan to grow its FFO per share by more than 10% per year. That puts Brookfield in a strong position to produce total returns in the low to mid-teens. That's excellent return potential from a high-yielding dividend stock with a lower risk profile. You can buy shares without hesitating this June. Before you buy stock in Brookfield Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Infrastructure wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Brookfield Infrastructure and Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy. Got $100 to Invest? 1 Top Dividend Stock Yielding Over 4% You Can Buy Without Hesitation in June. was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
Better Dividend Growth ETF: Vanguard Dividend Appreciation ETF or iShares Core Dividend Growth ETF
Dividend growth stocks have delivered the best returns over the last 50 years. Vanguard Dividend Appreciation ETF and iShares Core Dividend Growth ETF both track indexes focused on dividend growth stocks. There are subtle differences between these two dividend ETFs. 10 stocks we like better than Vanguard Dividend Appreciation ETF › Dividend growth stocks can be powerful investments. Hartford Funds and Ned Davis Research dug into the data on stocks based on their dividend policy. They found that over the past 50 years, dividend growers produced a higher total return with less volatility than companies that didn't increase their dividends regularly, those that cut or eliminated their payouts, and those that didn't pay dividends. The outperformance really added up over the long term. A hypothetical $100 invested in S&P 500 dividend growth stocks in 1973 would have grown to nearly $15,874 by the end of 2024. However, a similar $100 investment made in companies that didn't increase their dividend would have only grown to $2,983, while $100 in dividend non-payers would have only been worth $899. Meanwhile, a $100 investment in dividend cutters and eliminators would have lost money and been worth only $63 at the end of this time frame. Clearly, investing in dividend growth stocks can be a very powerful strategy. However, managing a portfolio of dividend growers is easier said than done. The good news is that many exchange-traded funds (ETFs) make investing in a strategy like dividend growth stocks easy. Two top options are the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and iShares Core Dividend Growth ETF (NYSEMKT: DGRO). Here's a closer look at which dividend ETF is better for investors who want to benefit from the power of dividend growth stocks. The Vanguard Dividend Appreciation ETF and the iShares Core Dividend Growth ETF each track an index that measures the performance of dividend growth stocks. However, there are some subtle differences that investors should consider. The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, which aims to measure the performance of U.S. companies that have consistently increased their dividend every year for the past decade. It excludes the top 25% of the highest-yielding dividend companies from the list. Currently, 338 companies are in the index. Meanwhile, the iShares Core Dividend Growth ETF tracks the Morningstar U.S. Dividend Growth Index, which provides exposure to companies with at least a five-year history of uninterrupted dividend growth and the capacity to continue increasing their dividends. The index excludes REITs and the top 10% highest-yielding stocks. Currently, 408 stocks make the cut. The funds remove the highest-yield stocks to avoid yield traps that, for example, have a high yield because of a crashing stock price. The main goal of each index, and the ETFs that track them, is to hold the companies with the highest likelihood of increasing their dividends in the future. Here's a snapshot of their top holdings: Vanguard Dividend Appreciation ETF iShares Core Dividend Growth ETF Broadcom (4.2% of the fund) Microsoft (3.5%) Microsoft (4.1%) JPMorgan Chase (3.3%) Apple (3.8%) Broadcom (3.1%) Eli Lilly (3.7%) ExxonMobil (2.7%) JPMorgan Chase (3.6%) Johnson & Johnson (2.6%) Visa (3%) Apple (2.6%) ExxonMobil (2.4%) AbbVie (2.4%) Mastercard (2.4%) Procter & Gamble (2.2%) Costco (2.3%) CME Group (2.2%) Walmart (2.2%) Home Depot (2.1%) Data sources: Vanguard and BlackRock. Because the iShares Core Dividend Growth ETF only excludes the 10% highest-yielding dividend stocks instead of the top 25%, the fund has a higher dividend yield: 2.3% trailing-12-month yield compared to 1.8% from the Vanguard ETF. One of the many benefits of investing in ETFs is that they do all the work. In exchange, you pay the fund's manager a fee, known as the expense ratio. This cost can be well worth it for the ease ETFs provide in helping you achieve your investment strategy. Vanguard is a pioneer in offering low-cost index funds to investors. It's always working to save investors money. It recently did that for investors in its Dividend Appreciation ETF by lowering the expense ratio to 0.05%. That makes it even cheaper than the iShares Core Dividend Growth ETF, which has a 0.08% expense ratio. Put another way, for every $10,000 you invest in the Vanguard Dividend Appreciation ETF, you'd pay $5 in management fees each year. That compares to $8 for a similar investment in the iShares Core Dividend Growth ETF. While it might not seem like much, a few dollars in management fees each year can really add up over the decades. While the past doesn't guarantee the future, it's important to look back at a fund's performance to see how well its strategy has done in delivering returns for investors. Here's a look at the returns produced by these funds over the past decade: Fund 1-Year 3-Year 5-Year 10-Year Vanguard Dividend Appreciation ETF 11.14% 9.55% 13.05% 11.20% iShares Core Dividend Growth ETF 8.84% 7.58% 16.36% 11.56% Data source: Vanguard and BlackRock. As that table shows, the Vanguard Dividend Appreciation ETF has delivered a stronger performance in recent years. Meanwhile, the iShares Core Dividend Growth ETF has performed better over the longer term, though its 10-year return is only slightly higher than Vanguard's. The Vanguard Dividend Appreciation ETF and the iShares Core Dividend Growth ETF focus on dividend growth stocks, which have proven to be winning long-term investments. Either fund would be a solid option for investors seeking to add these powerful wealth creators to their portfolios. The iShares ETF is better for those seeking a bit more income now (due to its higher yield), while the Vanguard fund has a lower fee structure, which enables its investors to keep more of the returns generated by the fund. Before you buy stock in Vanguard Dividend Appreciation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Dividend Appreciation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Apple, Broadcom, CME Group, Home Depot, JPMorgan Chase, Johnson & Johnson, Mastercard, and Visa and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends AbbVie, Apple, Costco Wholesale, Home Depot, JPMorgan Chase, Mastercard, Microsoft, Vanguard Dividend Appreciation ETF, Visa, and Walmart. The Motley Fool recommends Broadcom, CME Group, and Johnson & Johnson and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Better Dividend Growth ETF: Vanguard Dividend Appreciation ETF or iShares Core Dividend Growth ETF was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
