Rick the fund you refer to I believe is Vanguard Dividend Appreciation ETF VIG.
http://quote.morningstar.com/etf/f.aspx?t=VIG&region=USA...

Its certainly a decent choice.

When I went to pick some solid companies with higher than average dividend exposure to my portfolio, I chose Vanguard Consumer Staples ETF [VDC]. A little better dividend & less volatility than the market in general. Plus I think it may hold up better in tough times as the companies in the ETF are making stuff that people need on a daily, weekly, monthly basis.
http://quote.morningstar.com/ETF/f.aspx?t=VDC

'm trying to figure out if I should invest in stocks or specific ETF sectors.

Do you have time or the desire to analyze many stocks & continually monitor the ones you invest. I didn't when I worked nor wish to devote the time not that I'm retired.

Good Luck!