Dividend Growth ETFs?

[ken-do-nim]

(02-22-2021, 09:27 AM)fenders53 Wrote: We discussed this sometime back.  I think the ETFs fail to meet the DGI in part due to turnover.  Hold them for years and you still get about the same yield.  If in a taxable account they generate Cap gains taxes from trading.  If you do it, VIG is among the recognized best.  It's a Waterhouse ETF.  I preferred VYM though, also from Waterhouse.  Pays a considerably higher div because it holds more shares of the high yielding aristocrats like T, Chevron, ABBV etc.  I say this without looking at them for about a year.  I think DGI is properly done with individual stocks. Grab a couple of the best, (like AVGO) and just hold them for the DGI yield on cost trick to properly work.

I'd like to understand this better.  

Let's say I park $10k in AVGO.  In 10 years, that $10k grows to, let's say $20k.  They keep the dividend at 3%, so when I was getting $300 per year, now it's $600 per year.

Now let's say I instead put the $10k into VIG.  What happens differently?  I see today its yield is 1.41%.  Has that not remained constant as the price has appreciated?  Did it use to be higher?