Here's the most popular dividend ETF today and the stocks it holds

Published Fri, May 15 20207:09 AM EDTUpdated Fri, May 15 20208:46 AM EDT

(This story is for CNBC Pro subscribers only.) Stable and growing dividends are a great source of income while uncertainty reigns in the markets and investors are flooding into an exchange-traded fund that aims to provide just that. The Vanguard Dividend Appreciation Index Fund — which tracks stocks that have raised their dividends 10 years running — is one of the most popular ETFs right now bases on inflows, according to FactSet. The fund, which trades under the ticker VIG, has seen $2.585 billion poured into it just this year, while the deadly coronavirus has caused unprecedented financial disruption. That inflow is the most of any dividend-focused fund and among the top 15 biggest inflows for any U.S. equity ETF this year. Investors are betting there's safety in stocks that have strong balance sheets and reward shareholders with regular cash payments. Most of the 182 stocks in the fund aren't the usual dividend-heavy stocks, like real estate or utilities. Holdings include consumer goods and industrial stocks. The fund's total net assets are about $44.5 billion. Take a look at the fund's top 10 holdings here. Software giant Microsoft is the top holding. The technology juggernaut has a dividend of 1.1% and resilient business model for the coronavirus pandemic. Microsoft also has a strong credit rating, meaning it can easily borrow money. The fund's top holdings list is full of defensive stocks. The theory behind defensive stocks is that consumers will always pay for health-related items like medications and hospital visits and will always buy staple goods like toothpaste and laundry detergent, even in tough economic times. Consumer Staples Procter & Gamble , Johnson & Johnson , Walmart and Costco are all in the fund's top 10 holdings. With the yield on the U.S. 10-year Treasury note around 0.64%, Procter & Gamble and Johnson & Johnson's 2.7% dividend is an attractive investment. The same goes for Walmart's 1.8% dividend yield and Costco's 0.9% yield. Plus, Costco , Johnson & Johnson and Procter & Gamble have increased their dividend payment during the coronavirus crisis, bucking the broader market's trend of ditching the dividends. These companies are also benefiting from the millions of Americans stocking up on household products and groceries for the unknown future. Fast-food giant McDonald's is also getting a boost as people need food products during the quarantine. McDonald's pays a generous 2.9% dividend. Abbott Laboratories — another top holding — is a key provider of coronavirus test kits, including a new tool that could enable mass Covid-19 screening, as President Donald Trump seeks to reopen parts of the U.S. economy. In addition to being on the front lines of fighting the virus, the pharmaceutical company pays a 1.6% dividend yield. Payments company Visa also makes the list. While consumer spending has taken a large hit from the Covid-19 crisis, many analysts on Wall Street say the consumer will lead the U.S. out of this recession. Visa pays a 0.7% dividend yield. The fund has a 0.06% expense ratio.

A Visa debit card.

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(This story is for CNBC Pro subscribers only.)

Stable and growing dividends are a great source of income while uncertainty reigns in the markets and investors are flooding into an exchange-traded fund that aims to provide just that.