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ETF Specialist

This Dividend Strategy Emphasizes Shareholder-Friendly Companies

Consistent dividend growth is key.


High-quality companies often have a defensive bent, making them a welcome addition to a diversified portfolio. They can be less volatile than the market and hold up better during drawdowns. Consistent dividend growth is a good proxy for quality because it demonstrates that the business is healthy, stable, and run by a shareholder-friendly management team.

Vanguard International Dividend Appreciation ETF (VIGI) looks for these stocks listed on foreign exchanges, pushing it toward high-quality firms with consistent dividend growth that should offer attractive long-term performance. Morningstar's enhanced ratings framework has recognized this fund's low fee as a meaningful advantage. It earns a Morningstar Analyst Rating upgrade to Silver from Bronze.

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Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.