About Vanguard Dividend Appreciation ETF (VIG) — Dividend Analysis 2026
VIG tracks companies that have grown their dividends for 10+ consecutive years — the definition of dividend quality. With 315+ holdings and 0.06% expense ratio, it's a core holding for dividend growth investors. Lower current yield but superior long-term dividend growth versus high-yield alternatives.
Is VIG a good dividend investment in 2026?
VIG offers a 1.29% forward yield with a 35% payout ratio. With a safety score of 100/100, the dividend appears very safe. The 5-year dividend CAGR of 9.2% demonstrates strong, consistent growth that outpaces inflation.
VIG DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your VIG portfolio grows to $33.0K vs $31.6K without reinvestment — a DRIP bonus of $1.4K. This is the compound interest effect in action.
VIG dividend growth history & forecast
VIG has grown its dividend by 8.5% over the last year and 9.2% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 1.29% — illustrating why dividend growth stocks are powerful long-term wealth builders.
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🌍 VIG Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold VIG.
Gross yield
1.29%
Tax rate
15.00%
After-tax yield
1.10%
Real yield (−CPI)
-1.70%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
1.29%
-1.51%
$129 / yr
🇺🇸 US Taxable (15%) ✓
15%
1.10%
-1.70%
$110 / yr
🇺🇸 US Taxable (20%)
20%
1.03%
-1.77%
$103 / yr
🇬🇧 UK ISA
0%
1.29%
-1.51%
$129 / yr
🇬🇧 UK Taxable
8.75%
1.18%
-1.62%
$118 / yr
🇨🇦 TFSA
0%
1.29%
-1.51%
$129 / yr
🇨🇦 CA Taxable
25%
0.97%
-1.83%
$97 / yr
🇦🇺 Super (pension)
15%
1.10%
-1.70%
$110 / yr
🇦🇺 AU Taxable
30%
0.90%
-1.90%
$90 / yr
🇩🇪 DE Taxable
26.375%
0.95%
-1.85%
$95 / yr
🇫🇷 FR Taxable
30%
0.90%
-1.90%
$90 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 VIG Income Goal & Break-Even
Dividend Break-Even
26yr
Years for dividends to repay your full VIG investment price of $185.60/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$1.9K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$-530.56
How much do I need to invest in VIG for:
Shares needed
11,765
Capital required
$2,183,584
Monthly income
$2,000
Based on current dividend of $2.40/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 VIG Dividend Payment Schedule
VIG pays quarterly — 4 times per year. Next ex-div: Mar 21, 2026.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
💰
10 shares
$5.10 / payment
$20.40 / year after tax
100 shares
$51.00 / payment
$204.00 / year after tax
1,000 shares
$510.00 / payment
$2040.00 / year after tax
📊 VIG vs ETF Sector Benchmarks
How VIG compares to typical ETF sector averages.
Dividend YieldVIG: +1.29% vs sector avg 3.50% ↓ Below avg
VIG━━ ETF avg: 3.50%
5Y Dividend CAGRVIG: +9.20% vs sector avg 8.20% ✓ Better
VIG━━ ETF avg: 8.20%
Payout RatioVIG: 35.00% vs sector avg 52.00% ✓ Better
VIG━━ ETF avg: 52.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.