If you’re a long-term investor looking for quality investments that provide consistent cash flow, exchange-traded funds<\/a> (ETFs) are an excellent choice. Their inherent diversification helps minimize risk over time, and there are numerous funds specifically focused on dividends.<\/p>\n Vanguard funds stand out due to their low fees, making them ideal for buy-and-hold strategies. Two noteworthy options for generating strong cash flow are the Vanguard Dividend Appreciation ETF<\/strong> (VIG<\/a> -0.98%<\/span>)<\/span> and the Vanguard High Dividend Yield ETF<\/strong> (VYM<\/a> -1.05%<\/span>)<\/span>.<\/p>\n Image source: Getty Images.<\/p>\n<\/p><\/div>\n The Vanguard Dividend Appreciation ETF offers a modest dividend yield of 1.6%, slightly above the S&P 500<\/strong> average of 1.2%. However, its emphasis on dividend growth makes it particularly appealing for long-term investors. By holding onto this ETF, you can benefit from increasing dividend payments, allowing your recurring income to grow over time.<\/p>\n With a low expense ratio<\/a> of just 0.05%, this fund is a smart choice for long-term investing, as even minor fees can accumulate significantly over the years. In return for these modest costs, you gain exposure to over 330 quality dividend stocks<\/a>.<\/p>\n Currently, the top three holdings in the ETF are Broadcom<\/strong>, Microsoft<\/strong>, and JPMorgan Chase<\/strong>. Broadcom, the largest holding, comprises about 6% of the portfolio, while the majority of the other holdings are smaller positions, providing essential diversification for long-term investing and risk mitigation.<\/p>\n As of 2025, the fund has generated total returns<\/a> (including dividends) of 11%, just shy of the S&P 500’s 14%. In a down market, the Dividend Appreciation ETF may outperform the index, and its dividend growth can enhance your returns over time, allowing you to earn more on your initial investment.<\/p>\n The Vanguard High Dividend Yield ETF currently boasts a yield of around 2.5%, more than double the S&P 500<\/a> average. This fund focuses on high-yielding stocks rather than just dividend growth, resulting in a broader range of holdings\u2014579 as of August 31. Its expense ratio is also competitive at 0.06%.<\/p>\n There is some overlap with the other Vanguard fund, as Broadcom and JPMorgan Chase are also top holdings here. However, instead of Microsoft, ExxonMobil<\/strong>, with a yield of 3.5%, is among the top three holdings.<\/p>\n Investing in high-yielding stocks can carry more risk, as dividends may be cut or suspended if a company’s financial health falters. Nevertheless, the extensive diversification within this ETF mitigates risk for investors. Even if some payouts are not secure, the fund can still maintain a high yield, as no single stock (aside from Broadcom and JPMorgan Chase) constitutes more than 3% of the portfolio.<\/p>\n This year, the ETF’s performance has mirrored that of the Vanguard Dividend Appreciation Index, with both funds achieving over 11% returns when factoring in their payouts.<\/p>\n Both of these ETFs represent excellent long-term investments, capable of generating substantial recurring dividend income<\/a> over the years.<\/p>\n<\/div>\n JPMorgan Chase is an advertising partner of Motley Fool Money. David Jagielski<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, Microsoft, Vanguard Dividend Appreciation ETF, and Vanguard Whitehall Funds – Vanguard High Dividend Yield ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy<\/a>.<\/em><\/p>\n <\/span>\n<\/div>\n","protected":false},"excerpt":{"rendered":" These funds are full of solid dividend stocks that can generate recurring income for years. If you’re a long-term investor looking for quality investments that provide consistent cash flow, exchange-traded funds (ETFs) are an excellent choice. Their inherent diversification helps minimize risk over time, and there are numerous funds specifically focused on dividends. Vanguard funds […]<\/p>\n","protected":false},"author":1,"featured_media":3114,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[],"class_list":["post-3113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=3113"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/3114"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=3113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=3113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=3113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"A](\"https:\/\/g.foolcdn.com\/image\/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F837391%2Fa-person-handing-over-money.jpg&op=resize&w=700\")
<\/p>\n1. Vanguard Dividend Appreciation ETF<\/h2>\n
2. Vanguard High Dividend Yield ETF<\/h2>\n