3 Dividend ETFs Built for Long-Term Investors to Buy and Hold
2026-07-17 09:15
•Todd Shriber •The Motley Fool
•••• ••••• Axe Capital view
Dividend ETFs Worth Watching for SA Investors
Three US dividend ETFs offer varying angles on income and growth, with clear implications for rand investors.
Dividend-paying shares often get overlooked in the chase for growth, but they provide steady income and a cushion in volatile markets. The Vanguard Dividend Appreciation ETF (VIG) stands out for its rock-bottom fees and focus on companies that have consistently increased dividends for over a decade. That discipline helps weed out riskier payers and fits well with long-term investors in South Africa looking for stable returns amid rand swings. The iShares Select Dividend ETF (DVY) is more about income, boasting a 3.4% dividend yield and a big weighting in financials and utilities—sectors familiar to us here, like Standard Bank and Absa, that are regaining footing. The tech-heavy TDIV fund targets firms with growing free cash flow but comes with a higher fee and tech remains a tricky bet for high dividends right now. If the rand weakens against the USD, dividend income in rand terms rises—enhancing the appeal of these US-listed ETFs. I’d avoid chasing yield spikes, though; if inflation jumps or interest rates climb faster, these dividend plays could suffer. this is just my opinion and not financial advice
Buy VIG to capture steady dividend growth at low cost; consider DVY if you want higher yield with exposure to sectors familiar from the JSE’s financial and utility names. Stay clear of TDIV unless your appetite for tech growth at a premium fee is strong.
- VIG
- DVY
- USD/ZAR
- Rand strength reducing USD income converted back to ZAR
- Rising global interest rates hurting dividend stock valuations
6/10
The article recommends three dividend ETFs for long-term investors: Vanguard Dividend Appreciation ETF (VIG) with $111B in assets and a 0.04% expense ratio, iShares Select Dividend ETF (DVY) offering a 3.4% yield with defensive and value stock exposure, and First Trust NASDAQ Technology Dividend Index Fund (TDIV) focusing on tech dividend payers. S&P Dow Jones Indices forecasts 6.5% U.S. dividend growth in 2026.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Todd Shriber
Categories: Rates, Equities, Capital Returns, Financials
Tickers: VIG, DVY, TDIV, META, NVDA
Sentiment: Positive - Largest dividend ETF with $111B AUM, lowest expense ratio at 0.04%, strong 10-year performance with only 4 ETFs outperforming it, emphasis on consistent dividend growth with 10+ year payout increase requirement Above-average 3.4% dividend yield, 23-year track record, quality screening through dividend consistency and payout ratio metrics, significant exposure to resurgent financial sector and defensive utilities
Keywords: dividend ETFs, long-term investing, dividend growth, share buybacks, dividend yield, technology stocks, financial services
Insights:
- VIG: Positive: Largest dividend ETF with $111B AUM, lowest expense ratio at 0.04%, strong 10-year performance with only 4 ETFs outperforming it, emphasis on consistent dividend growth with 10+ year payout increase requirement
- DVY: Positive: Above-average 3.4% dividend yield, 23-year track record, quality screening through dividend consistency and payout ratio metrics, significant exposure to resurgent financial sector and defensive utilities
- TDIV: Positive: Original tech dividend ETF with strong free-cash-flow growth potential in tech sector, reasonable entry requirements for dividend payers, though higher 0.50% expense ratio is a drawback