VYM - Get Decades of Passive Income From This High-Dividend-Yield ETF
2024-05-13 06:50:00 ET
Passive income is one of the best reasons to favor putting dividend stocks in your portfolio. Even if you're decades away from retirement, you can reinvest the quarterly payout checks so you amplify your overall returns by accumulating more shares. Closer to retirement, you might switch the payouts so they arrive as cash directly in your portfolio.
Ideally, you can own a collection of dividend stocks that are likely to continue paying and boosting their dividends over many years. Luckily, there's an exchange-traded fund ( ETF ) that accomplishes that goal with just one purchase. Read on for some great reasons to buy the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) .
ETFs are like mutual funds in that they are baskets of stocks selected for specific characteristics. ETFs are more flexible, however, as they trade during the market day. Many investors prefer index-based ETFs from Vanguard because of their low fees and the company's passive management approach.
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Get Decades of Passive Income From This High-Dividend-Yield ETF