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Digging Into Vanguard Dividend Growth

The fund stands out for its focus on companies with a strong competitive advantage that can sustain and grow their dividends over time.

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With $51.3 billion in assets, Vanguard Dividend Growth (VDIGX) ranks as one of Vanguard’s most successful actively managed funds. Manager Donald Kilbride has been at the helm since early 2006. Peter Fisher and Ashley Carew help manage the portfolio as part of Wellington Management’s three-person dividend growth team, which also draws on research from Wellington’s other portfolio managers and analysts. Kilbride and his compatriots target companies that they believe can achieve dividend-growth rates of at least 3% above inflation.

In this article, I’ll use Morningstar’s Global Risk Model to analyze the underlying characteristics of Vanguard Dividend Growth’s equity holdings. The portfolio stands out for its focus on companies with a strong competitive advantage that can sustain and grow their dividends over time.

Amy C. Arnott has a position in the following securities mentioned above: JNJ, PG, MDT. Find out about Morningstar’s editorial policies.