Key Points
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Dividend stocks are outpacing the S&P 500 significantly at the start of 2026.
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The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) has risen nearly 4% year to date, contrasting with a flat return for the Vanguard S&P 500 ETF.
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Over 300 U.S. stocks within the ETF have shown a 10-year track record of annual dividend growth.
In 2026, the Vanguard Dividend Appreciation ETF (VIG) demonstrates strong performance, gaining nearly 4% year-to-date, while the larger Vanguard S&P 500 ETF remains flat. This shift is attributed to changing investor sentiment, as casual growth investing has become less attractive amidst cautious economic forecasts and high valuations.
VIG’s strategy focuses on robust, cash-rich companies with a history of consistently increasing dividends, excluding high-yield stocks and REITs. This positions the ETF favorably, although its substantial tech allocation (26%) could expose it to risks if the sector continues to decline.
