This ETF is less risky than its international counterpart, and it also has a longer track record, as it was established in 2006. However, it’s also experienced slightly lower returns of around 8% per year, on average, since its inception. The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is similar to the previous fund, except it only contains U.S.-based companies rather than international stocks. It includes just over 400 stocks from companies with higher-than-average dividend yields.
When it comes to dividend payments, though, this fund shines. Over the past year, it has paid quarterly dividends of around $0.70 to $0.80 per share, which can add up substantially over time.
Source buffalonews.com This ETF trades for around $100 per share. Say you’ve been investing for many years, and you now own 1,000 shares. If you’re receiving $0.70 per share in quarterly dividends, that’s $700 per quarter, or $2,800 per year in passive income. And the more you invest, the more you can earn in dividend payments.
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