This High-Yield Vanguard ETF Could Turn $400 per Month Into $18,900 in Annual Dividend Income
Purchasing stocks that consistently pay an above-average dividend can add an element of safety to a portfolio. When I say above average, I mean payouts exceeding the average dividend yield for companies in the S 500. That figure is currently 1.82%.
Companies that can regularly afford to top that figure often have a competitive advantage that supports consistent cash-flow generation. Of course, stocks that pay above-average dividends often have limited growth opportunities, so they may not beat the S 500 during bull markets, but they tend to be more resilient during bear markets.
Investors get exposure to hundreds of those stocks when they purchase shares of Vanguard High Dividend Yield ETF (NYSEMKT: VYM). What's more, that exchange-traded fund (ETF) could turn $400 invested monthly into $627,200 over three decades, and that stake would generate about $18,900 in annual dividend payments based on its historical yield.
Source Fool.com
