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2 Dividend ETFs to Buy and Hold for the Long Haul

newsfeedback@fool.com (Stefon Walters)
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⚡ Quantum Brief
Two dividend ETFs—SCHD and VIG—stand out for long-term investors amid 2026’s AI-driven market hype, offering stability through rigorous stock selection criteria. Both ETFs require 10 consecutive years of dividend increases, ensuring only financially resilient companies are included, reducing risk compared to high-yield but volatile individual stocks. SCHD focuses on high-quality, steady cash-flow sectors like energy (19.88%) and consumer staples, with a 3.4% yield and holdings like Coca-Cola and PepsiCo. VIG prioritizes dividend growth over yield (1.6%), with tech comprising 25% of its portfolio, reflecting newer dividend-paying companies committed to long-term payout increases. Over the past decade, VIG’s payouts surged 115%, while SCHD’s yield remained stable, catering to investors seeking either income consistency or growth potential.
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By Stefon Walters – Mar 16, 2026 at 4:15PM ESTKey PointsThe Schwab U.S. Dividend Equity ETF (SCHD) has criteria that ensure it contains high-quality companies.The Vanguard Dividend Appreciation ETF (VIG) holds more tech stocks than most typical dividend ETFs.A company must have 10 consecutive years of dividend increases to be included in SCHD and VIG.At a time when much attention is on growth and tech stocks -- especially artificial intelligence (AI)-related ones -- dividend stocks are flying under the radar yet are delivering solid performance. It's always a good idea to have dividend stocks in your portfolio, but especially during times of market uncertainty. There's no shortage of dividend stocks to choose from, but I often recommend investing in dividend exchange-traded funds (ETFs). They may not have the ultra-high yields you see in certain individual stocks, but they provide diversification and lower risk. If you're looking for a couple of dividend ETFs to add to your portfolio for the long haul, consider the following two options. They're both dividend-focused, but in different ways. Image source: Getty Images. 1. Schwab U.S. Dividend Equity ETF The Schwab U.S. Dividend Equity ETF (SCHD +0.23%) has been a dividend ETF staple because of its focus on high-quality companies. To be eligible for SCHD, a company must have consistent cash flow, profitability, and 10 years of consecutive dividend increases. A company that checks those three boxes is typically financially healthy, so the ETF avoids situations where a company is included solely because of a high yield (which could be unsustainable). ExpandNYSEMKT: SCHDSchwab U.S. Dividend Equity ETFToday's Change(0.23%) $0.07Current Price$30.87Key Data PointsDay's Range$30.82 - $31.0052wk Range$23.87 - $31.95Volume31M SCHD contains 101 stocks, with the top three represented sectors being energy (19.88%), consumer staples (18.50%), and healthcare (16.20%). These sectors don't typically get as much attention as sectors like tech, but they tend to produce steady cash flow. On par with SCHD's focus on high quality is its holding of four Dividend Kings (companies with at least 50 years of consecutive dividend increases): Altria (4.08% of the ETF), Coca-Cola (3.93%), PepsiCo (3.88%), and Target (1.99%). At the time of this writing, SCHD's dividend yield is 3.4%, which is right on par with its average for the past five years. SCHD Dividend Yield data by YCharts 2.

Vanguard Dividend Appreciation ETF The Vanguard Dividend Appreciation (VIG +0.78%) has a relatively small yield compared to SCHD and other dividend ETFs (1.6% as of market close on March 11), but, as the name suggests, its focus is on companies that are actively increasing their dividend payouts. To be eligible for VIG, a company must also have increased its dividend for at least 10 consecutive years. ExpandNYSEMKT: VIGVanguard Dividend Appreciation ETFToday's Change(0.78%) $1.70Current Price$219.24Key Data PointsDay's Range$218.60 - $219.9452wk Range$169.32 - $230.53Volume1.4M One thing that stands out about VIG is that it holds more tech stocks than most dividend ETFs on the market. The tech sector is over a quarter of VIG, and that's because many of these companies have only relatively recently begun paying dividends, but fit VIG's mold of including companies committed to increasing their dividends. Investors should be OK with VIG's low dividend yield, anticipating that over the long haul its payout will be much higher than it is today. Over the past decade, the payout has increased by more than 115%. VIG Dividend data by YCharts How much it increases over the next decade will ultimately depend on the companies' specific increases in that time, but they've already shown a commitment to keeping the annual increases going.Read NextMar 15, 2026 •By David DierkingGrowth Stocks Are Getting Riskier. This ETF Historically Holds Up BetterMar 15, 2026 •By Matt DiLallo1 Dividend ETF to Buy Hand Over Fist and 1 to AvoidMar 15, 2026 •By Selena Maranjian1 ETF That Could Turn $100 Per Month Into $67,380Mar 14, 2026 •By Justin PopeWant Decades of Passive Income?

Buy This Index Fund and Hold It ForeverMar 13, 2026 •By Eric TrieDividend Stability or Growth Exposure? SCHD and FDVVMar 13, 2026 •By Sarah SidlowHDV vs. SCHD: Which Dividend ETF Is Best?About the AuthorStefon Walters is a contributing Motley Fool stock market analyst covering publicly traded companies across technology, consumer goods, and financials, as well as retirement planning. Stefon is a published author and has more than a decade of experience teaching financial literacy. He holds a bachelor’s degree in economics from the University of North Carolina at Chapel Hill.TMFStefonWStocks MentionedSchwab U.S. Dividend Equity ETFNYSEMKT: SCHD$30.87(+0.23%)+$0.07Vanguard Dividend Appreciation ETFNYSEMKT: VIG$219.24(+0.78%)+$1.70*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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