Here's How Much You'd Need to Invest in VYM to Generate $500 per Month in Dividends

High-yield dividend exchange-traded funds (ETFs) are large for anyone looking to amended the income generated by their portfolios. But these funds travel successful each shapes and sizes. You truly request to look astatine however the money is constructed to recognize whether it's close for you.

The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) takes a alternatively generic approach. It starts with a wide beingness of dividend-paying stocks and simply selects the apical 50% of forward-looking yields for inclusion. What you extremity up with is simply a portfolio of much than 600 stocks with a comparatively humble 2.3% yield.

That's treble the output of the S&P 500 (SNPINDEX: ^GSPC), but it's good beneath the 3%-4% yields currently being offered by galore different ETFs successful this category.

The 2.3% output makes it challenging to make a batch of income from the Vanguard High Dividend Yield ETF. To execute an income of adjacent $500 per period (assuming a dependable 2.3% output going forward), idiosyncratic would request to person astir $261,000 invested successful the fund. That's much than is needed with funds specified arsenic the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). An concern of astir $187,000 successful SCHD, with its 3.2% yield, would make $500 monthly.

The Vanguard High Dividend Yield ETF has yielded 3% astatine respective points successful the past, truthful it's imaginable that income prospects volition amended successful the future. But the money is inactive a comparatively blimpish introduction successful the high-yield abstraction and 1 that is precise fashionable with investors.

Should you bargain banal successful Vanguard High Dividend Yield ETF close now?

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