Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTodd Shriber, The Motley FoolFri, July 17, 2026 at 11:35 AM GMT+2 5 min readPerhaps not realized by some investors, U.S. companies' preferred method of returning capital to shareholders for the bulk of this century has been share repurchases, not dividends.Buybacks are flexible and more tax efficient than cash payouts. Plus, there's the added benefit of boosting earnings per share for companies that materially shrink their share counts. All of that sounds good, and it is, but none of those facts should be seen as slights against dividend stocks. In fact, U.S. companies, broadly speaking, remain very much committed to dividends.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »These dividend ETFs, including a cheap Vanguard fund, are suitable for committed long-term investors. Image source: Getty Images.Earlier this year, S&P Dow Jones Indices issued a report forecasting U.S. dividend growth of 6.5% in 2026, with the aggregate tally reaching $827 billion. The index provider adds that it expects all 24 sectors it tracks to notch positive payout growth this year. To be sure, those are positive indicators.Investors wondering how to invest in dividend stocks broadly can find an array of exchange-traded funds (ETFs) that fit the bill. Market participants seeking to fill out the domestic dividend slices of their portfolios may want to examine any or all of the following trio of ETFs.In terms of size, the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is the king of dividends, with $111 billion in assets under management, giving it a healthy advantage over the second-place fund. One reason this Vanguard fund is so popular with equity income investors is its emphasis on consistency and dividend growth.The fund tracks the S&P U.S. Dividend Growers Index, which requires member companies to have increased payouts for at least 10 consecutive years. That's a high entry bar. The Vanguard fund holds 331 stocks, nearly 49% of which hail from the technology and financial services sectors. Those groups sport low yields but have significantly accelerated dividend growth in recent years.For long-term investors, there's undeniable merit in embracing dividend growth, at least in part of their portfolios, and this ETF proves it. During the decade ended June 30, just four dividend ETFs outperformed this Vanguard fund, and this fund's advantage over the No. 6 fund on the list is sizable.Past performance isn't a promise of future returns, but investors in this ETF can bank on steady dividend growth and a low cost of ownership. This fund charges just 0.04% per year, or $4 on a $10,000 stake. That's far below the average of 0.72% on competing strategies.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info