One of the giant dividend ETFs, with $9.2 billion in assets, Vanguard Dividend Appreciation seeks dependability, screening for companies that have increased dividends for 10 straight years. At 2.1%, its yield isn't the highest. But the fund has mostly avoided troubled companies. "If there's one dividend ETF that's safe," says Morningstar analyst Samuel Lee, "it's Vanguard Dividend Appreciation." Intriguingly, four of its five top stocks -- McDonald's (MCD), IBM (IBM), Coca-Cola (KO), Procter & Gamble (PG), and Chevron (CVX) -- are also held by Warren Buffett's Berkshire Hathaway (BRKA). The ETF is up 7.4% for the past 12 months, vs. 2.9% for the S&P 500 index.
Reliability and income matter more than ever. These undervalued names offer stability.
