Vanguard ETF Offers Path to $686K Portfolio with $20.5K Annual Dividends
Investors seeking steady income and long-term growth may find an attractive option in Vanguard's High Dividend Yield ETF (VYM). The fund, which tracks the FTSE High Dividend Yield Index, provides exposure to large-cap companies with above-average dividend payouts. A disciplined investment of $500 monthly could potentially grow to $686,000 over time, generating approximately $20,500 in annual dividend income.
VYM's top holdings include blue-chip names like Broadcom, JPMorgan Chase, and ExxonMobil—companies with established dividend histories and strong cash flows. The ETF's diversified approach eliminates single-stock risk while maintaining focus on quality income generators. Dividend-focused strategies gain particular relevance in volatile markets, where yield provides downside cushion.
