VIG Cannot Own Meta’s or Alphabet’s Dividends Until 2035 at the Earliest: The 10-Year Rule Written Into Its Index
VIG promises exposure to America's greatest dividend growers, but a single rule in its index methodology keeps two of the biggest new payers completely locked out for the next decade.
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You own the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) for rising income, and you probably assume it holds America’s strongest dividend growers. Rather, it holds the companies with the longest continuous streaks of raises. Those are two different lists. Meta Platforms (NASDAQ:META | META Price Prediction) and Alphabet (NASDAQ:GOOGL) both started paying dividends in 2024. The index behind your fund cannot admit either one before March 2035.
Ten-Year Clock Starts Only With the First Raise
VIG held roughly $130.9 billion in net assets as of July 31, 2026. It tracks the S&P U.S. Dividend Growers Index, which requires 10 years of annual dividend increases for eligibility. The year a company initiates its dividend does not count as an increase. The timer starts with the first raise. A company cannot buy that history, accelerate it, or earn its way in early, no matter its size.
VIG currently trades near $235.33. On price, the fund is up 7.98% year-to-date, 11.06% over one year, 64.82% over five years, and 237.10% over ten.
Two Giants Already Paying and Already Raising
Meta declared its first dividend on February 1, 2024, went ex-dividend on February 21, 2024, and opened at $0.50 a quarter. Its most recent quarterly payout is $0.525, with $2.10 per share paid over the trailing twelve months. Alphabet declared its first regular quarterly dividend on April 25, 2024, went ex-dividend on June 10, 2024, and opened at $0.20. It now pays $0.22 a quarter, with $0.86 over the trailing twelve months.
Both 2024 starts count for nothing. To reach ten straight increases, each company must raise its annual dividend every year from 2025 through 2034. That makes the March 2035 reconstitution the earliest potential entry point — the earliest possible date, with no guarantee of admission. The index’s other rules still apply, and one missed raise resets the timer. Neither company can join before then.
Over the past ten years, Alphabet shares rose 752.15%, and Meta shares rose 465.58% on price. Future returns could look very different, but a history-only screen keeps both outside VIG for another decade.
Why a Ten-Year Screen Works
The rule has real merit. A decade of consecutive raises usually covers at least one recession or credit shock. Companies that kept raising through those periods have shown balance sheet durability and management discipline. For a retiree who fears a dividend cut more than a slow raise, that filter carries real information.
The index makes no judgment on Meta or Alphabet as investments, but it does determine when they could possibly be included in a fund like VIG.
Backward-Looking Screens Lock Out the Fastest Raisers
A backward-looking screen can often fall behind by construction. It cannot separate a company that will keep raising from one about to stop, because both show the same record. It also shuts out new dividend payers at the stage when dividend growth tends to run fastest, since raises off a small base compound faster than raises off a mature one. An income-growth investor in VIG gets locked out of that group for a decade at a time. The fund trades early growth for proven durability — a cost investors should be aware of.
Alternatives Built on Different Screens
Other dividend ETFs draw the line elsewhere. The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) tracks an index requiring five years of continuous dividend growth, and the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) screens for ten consecutive years of paid dividends. Shorter or looser history screens can admit initiators sooner, though yield and quality filters could still exclude them.
Who VIG Suits and What to Check First
VIG fits the retiree who wants proven dividend durability and accepts that new payers arrive a decade late. It underserves the investor seeking income growth from the next generation of large payers. That investor would need a broad market index fund alongside VIG, one that holds Meta and Alphabet at market-cap weight today. Before buying any dividend fund, open its index methodology and find the eligibility rule. Note how many years it requires, whether it counts payments or increases, and whether the start year counts. That single rule tells you what your fund is unable to own.
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Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
