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This High-Quality Dividend-Growth Fund Can Serve as a Core Portfolio Holding

Adam McCullough, CFA (adam.mccullough@morningstar.com)

Dividend-growth funds focus on companies that have the ability and willingness to increase their dividend payments. For this article, I'll take a deeper dive into  Vanguard Dividend Appreciation ETF VIG . Focusing on dividend growth reduces the fund's exposure to firms that have weak fundamentals and may not be able to sustain their dividend payments, which is a risk that often accompanies a narrow focus on yield.