1 Vanguard ETF Could Turn $500 Per Month Into a $686,000 Portfolio That Pays $20,500 in Annual Dividend Income

Core Viewpoint - Investing in the Vanguard High Dividend Yield ETF (VYM) can be a lucrative opportunity for patient investors, offering access to a diversified portfolio of high-quality companies with strong dividend yields [1][2]. Group 1: ETF Overview - VYM is a dividend-focused ETF that mirrors the FTSE High Dividend Yield Index, primarily consisting of large-cap companies with above-average dividend yields [3]. - The ETF includes well-established companies with solid cash flow and consistent dividend histories, such as Broadcom, JPMorgan Chase & Co., and ExxonMobil [4]. Group 2: Dividend Performance - VYM has shown a consistent increase in its dividend payouts, with a total increase of over 380% since its inception, significantly outpacing the S&P 500's dividend growth [5][7]. - The ETF's average dividend yield over the past decade is approximately 3%, providing a substantial income stream for investors [9]. Group 3: Investment Growth Potential - Over the past decade, VYM has averaged around 11.2% annual total returns, suggesting significant growth potential for long-term investors [8]. - A hypothetical investment of $500 monthly could grow to approximately $686,400 over 25 years, with an annual dividend income of about $20,580 based on a 3% yield [9].