Founder of Dividend Mantra. Founder of Mr. Free At 33. Co-Founder of Dividends & Income. I started blogging about my journey to financial independence back in 2011. By living well below my means and intelligently investing my hard-earned capital, I went from below broke at age 27 to financially free at 33 years old. I regularly create content on dividend growth investing, living off of dividends, undervalued high-quality dividend growth stocks, high-yield situations, and other long-term investment opportuni ...

Core Viewpoint - The Vanguard Dividend Appreciation ETF (VIG) is not the highest-yielding dividend ETF, but it focuses on investing in stocks that are likely to consistently increase their dividends over time, creating a growing income stream [1][6]. Group 1: ETF Overview - The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, which includes large-cap stocks with a history of annual dividend growth, comprising a total of 337 stocks [2]. - The ETF has a very low expense ratio of 0.05%, meaning that for every $10,000 in assets, the annual investment cost is only $5, which is reflected in long-term performance [4]. Group 2: Investment Strategy - The ETF is not focused on high current yields, allowing for greater exposure to fast-growing companies. For instance, Broadcom, the top holding, has a current dividend yield of about 1% but has increased its payout by 82% over the past five years [5]. - Microsoft, with a 23-year streak of dividend increases, is the second-largest holding in the ETF [5]. Group 3: Long-term Potential - Although the current yields of the stocks in the ETF may not be the highest, they have the potential to provide significantly higher payouts in the future, making it suitable for investors who are a decade or more away from needing income from their portfolios [6].

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the transition from financial struggle to freedom within a six-year period [2]. Group 1: Financial Independence Journey - The individual began blogging in 2011 about achieving financial independence by living below means and investing wisely [2]. - Achieved financial freedom at the age of 33 after starting from a position of being "below broke" at age 27 [2]. Group 2: Investment Focus - The content created focuses on dividend growth investing, emphasizing the importance of living off dividends and identifying undervalued high-quality dividend growth stocks [2]. - The strategy includes exploring high-yield investment opportunities and other long-term investment prospects [2].